In the face of slowing sales growth and aggressive competition from rival establishments, Krispy Kreme Doughnuts Inc., has stepped up its drive to promote its coffee products, pushing deeper into a territory that has been dominated by Starbucks and Dunkin' Donuts in recent years, according to Bloomberg Business.
In fact, in a test location in Clemmons, N.C., Krispy Kreme coffee workers could be seen grinding beans and utilizing a manual espresso machine to make specialty drinks like lattes and cappuccinos. The employees are even being called baristas, taking a cue directly from Starbucks.
The layout of the test location is also quite different from that of the conventional Krispy Kreme establishment. In contrast to the common, diner-style atmosphere of regular Krispy Kreme locations, the Clemmons branch features a warmer, more modern feel. The store even offers free WiFi and a generous number of power outlets, as a means to draw the elusive millennials, reports Eater.
Apart from the differences in appearance, the new store also features a new ordering system, which requires customers to pay upfront before receiving their order.
If successful, the Krispy Kreme might follow along the footsteps of Chick-fil-A, which employed a similar strategy last year. After realizing that their coffee products were not being utilized and promoted efficiently, the company partnered with Thrive Farmers to encourage customers to purchase its coffee. The strategy worked, and the Chick-fil-A's coffee sales doubled, according to Fortune.
Krispy Kreme has already earned a solid following for its doughnuts. If the company does pull off the intended coffee strategy, it might end up dominating the doughnut and coffee market.
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