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Doughnut panic: Krispy Kreme to enter New Zealand

  • News
  • June 1, 2017
  • Courtney Devereux
Doughnut panic: Krispy Kreme to enter New Zealand

Iconic global doughnut chain, Krispy Kreme, is getting ready to take its first steps into New Zealand. The launch of its highly anticipated Manukau store will fit well with Auckland’s growing food obsession.

After its successful launch in Australia in 2003, the American founded brand has set its sites on New Zealand. The expected opening of its retail and manufacturing plant is due around March 2018.

The company-owned chain is part of 31 countries, with 1000 stores internationally. Now, New Zealand is getting the opportunity to see first-hand how an iconic food brand slots into our community.

So why now? Andrew McGuigan, CEO of Krispy Kreme Australia and New Zealand, says the timing was key to entering our market.

“We’ve had a lot of work focusing on the growth opportunity in the Australian market, we really wanted to make sure we had the right team and the right capabilities to build the brand into another country, for us timing was as much an external factor as it was an internal factor.”

McGuigan says that the iconic brand that is Krispy Kreme is a great trend, but the market is stable.

“On the consumer side, doughnuts are a great trend, people are still very eager but the reality is doughnuts have been around for 100s of years. We’ve been around for 80 years, so we’re not really changing a fad, we just have to get our house sorted in the Australian market before we tackle the challenges of a whole new country.”

Speaking proudly of the brand, McGuigan says the businesses has been through different stages of growth and transformation. But now is seeing the sites doubling in popularity.

“It’s a fantastic brand, and it’s a brand that been around for 80 years - it’s an icon. Initially, for us, the challenge was getting the right business model, and designing an approach to the market that defined retail stores but also wholesale accessibility through partnerships. We’ve been able to grow the opportunity in a much more aggressive way.”

The scope of New Zealand’s doughnut market is lacking, with only about two to three options available for authentic, American-style doughnuts. The sense of community that Krispy Kreme focuses on is a big part they’re hoping to transfer into the Auckland site.

The site itself will be both a retail and production space, meaning doughnuts will be made fresh on site each day. The processing plant can average about 2,400 doughnuts every hour.

“It’s a unique one of a kind brand, we make them fresh on site. I think from a product perspective it’s in a league of its own, but from a brand perspective, it’s built on community, fun and having a good time,” says McGuian.

The Krispy Kreme brand, says McGuigan, focuses a lot on shared experiences and bringing joy though foods ability to connect.

The store will be based on Ronwood Ave, Manukau, across from Westfield. It will employee around 150 people, ranging from doughnut operations staff, retail workers and support staff.

Construction of its retail store and manufacturing facility is underway as part of an $8 million development on a 2.6-hectare site that's owned by the Wiri Licensing Trust.

The new store will be a great opportunity for more employment out in South Auckland.

Manukau, although not usually the first area of development for international brands, is a great place for the large facility that the doughnut chain has planned.

McGuigan says the large store relates back to providing customers with the full brand experience. For Krispy Kreme, this means visible production within the retail environment. 

“So for us to do that we need a big commercial site, we looked all over Auckland and we were lucky to find a great retail prescient opposite Westfield. We think that the right location helps bring the full brand experience to life… The first store is so critical, and for that reason, you need quite a large bit of land.”

“It's basically a window to our life,” says McGuigan. “There is a big viewing window that [customers] can see exactly how we make and process the doughnuts. So, everything is made from scratch on the site.”

Like Krispy Kreme in other global locations, Auckland’s store will also be involved with other wholesale partnerships with retailers.

“In today’s world, you have to be nimble and agile. One of our great strengths is that we are a multichannel brand, retail is a huge component to who we are, but also bringing Krispy Kreme to our consumer through these partnerships.”

To makes matters even better, the store will also be offering online and home delivery. But customers are advised to go visit the store at least once, as the layout and design are based on the American chain's iconic look.

Convenience is key, and according to McGuigan, making sure the products are easily accessible is a large part of the business model. 

“The consumer ultimately looks for convenience and accessibility. So we’ve kind of designed a business model which makes our product and brand experience delivered in a convenient way to that consumer, whichever way meets their needs.”

The brand has, even more, plans to expand, with more stores to open throughout the next few years.

Those looking to join the Krispy Kreme movement will be pleased to know the brand is hiring. Management roles are expected to be sorted July-September this year, while a large ‘recruitment roadshow’ will be in December-January to fill up the 150 spots.

McGuigan says that Krispy Kreme is happy to welcome New Zealand into the family.

“People generally get quite excited by the brand. We are very fortunate to be custodians of this great chain. There is an emotional love for Krispy Kreme which sometimes is hard to put your finger on. There is a cultural fanfare attached to it, and that certainly gives you a head start when it comes to a new country.”

“I think there is a sweet treat culture in New Zealand, I think Krispy Kreme is unique and it really is category defining in what that original glazed doughnut is.”

Tomorrow is national doughnut day, which Krispy Kreme is excited to be able to celebrate in Auckland next year. The company gives away 30,000 doughnuts across all its international stores.

The South Auckland facility will offer a retail store and drive-through and will also be the company's manufacturing base for Auckland and its future sites.

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