When it comes to hot, fresh doughnuts, Krispy Kreme’s popularity is undeniable. The North Carolina-based company sold a record 1.63 billion doughnuts globally last year and saw its revenue grow more than 9% to $404.6 million, according to Restaurant Business. Krispy Kreme even unseated Chick-fil-A in 2022 as the fast-food brand with which customers felt the deepest emotional connection.
But despite achieving this financial success and favor among customers, the doughnut giant hasn’t fared quite so well with its relatively young line of doughnuts geared toward grocery store snack aisles. In fact, Krispy Kreme reportedly plans to completely shut down the sector of its business that produces these packaged treats.
Krispy Kreme launched its line of Doughnut Bites and Mini Crullers at Walmart stores nationwide back in 2020. Unlike the fresh doughnuts that Krispy Kreme produces and delivers fresh to certain retailers, Krispy Kreme had to manufacture the packaged snack products so that they could last for some time on grocery store shelves.
Though it framed these products as a portable, convenient snack that can be enjoyed on the go, Krispy Kreme doesn’t seem to have secured the success with the treats that it was hoping for.
“Our fresh daily doughnut business is strong, profitable and growing quickly. This is the area where we are focusing our investments and resources,” Krispy Kreme said in a statement to Food Dive. “Because of this, we chose to exit our underperforming, extended shelf-life snack aisle business and cease production at our manufacturing facility in Concord, N.C., where these snack aisle products were made.”
Krispy Kreme plans to shut down that manufacturing facility in May, eliminating 102 jobs as a result, Food Dive reported. This means that any fans of the Doughnut Bites and Mini Crullers should act quick to stock up or eat their fill before they’re gone.
In the meantime, the chain is already making strides in the side of its business that’s focused on fresh doughnut deliveries. It secured an exciting deal with McDonald’s in 2022 to sell its fresh doughnuts at nine select locations in Kentucky.
Just last month, McDonald’s announced a massive expansion for the partnership, extending the Krispy Kreme test to roughly 160 locations across Louisville, Lexington, and surrounding areas in the Bluegrass State. Those locations are selling three fan-favorite Krispy Kreme flavors–the Original Glazed Doughnut, the Chocolate Iced with Sprinkles Doughnut, and the Chocolate Iced Kreme Filled Doughnut–starting today, March 21.