WEBVTT - The Krispy Kreme Episode Is Hot Now 0:00:08.800 --> 0:00:10.840 Hello, and welcome to Savor Prediction of ByHeart Radio. 0:00:10.840 --> 0:00:13.200 I'm Anny Resa and I'm Lauren vogel Baum, and today 0:00:13.240 --> 0:00:15.520 we have an episode for you about Krispy Creme. 0:00:16.800 --> 0:00:20.520 M hm. Was there any particular reason this was on 0:00:20.560 --> 0:00:21.280 your mind? Lauren? 0:00:22.000 --> 0:00:26.360 Uh, well, okay, So I've been wanting to do I 0:00:26.400 --> 0:00:30.000 love doing corporate episodes because they can go in wild 0:00:30.120 --> 0:00:33.839 places that you're not expecting them to. And I had 0:00:33.880 --> 0:00:40.160 been looking at the major US donut chain brands, and 0:00:40.440 --> 0:00:42.600 I have been in the South for long enough that 0:00:42.720 --> 0:00:47.800 I was morally obligated to pick Krispy Kream before Dunkin Donuts. 0:00:49.280 --> 0:00:55.840 Yes, which I briefly mentioned in the last episode that 0:00:55.920 --> 0:00:58.800 we did. Oh gosh, what was it? 0:00:58.800 --> 0:00:59.720 It could have been anything. 0:01:00.120 --> 0:01:03.480 It could have been anything, but whatever previously came out 0:01:03.520 --> 0:01:09.759 to this. I mentioned that in the US, we don't 0:01:09.760 --> 0:01:14.120 really have a breakfast and I found a whole article 0:01:14.160 --> 0:01:18.160 from the Bitter Southerner that was about how Dunkin Donuts 0:01:18.240 --> 0:01:22.360 kind of capitalized Oh sure, you know American runs on 0:01:22.440 --> 0:01:28.160 duncan go fast, fast fast, and Krispy Kreme was like, no, 0:01:28.440 --> 0:01:32.119 come in and sit down or you know, and stay 0:01:32.120 --> 0:01:36.039 a while. Yeah, the kind of differences between southern and northern, 0:01:36.080 --> 0:01:39.440 but also what succeeded where and it was really fascinating. 0:01:41.080 --> 0:01:43.440 But yes, they're not a sponsor Chrispy krean no, nor 0:01:43.520 --> 0:01:50.200 Dunkin Donuts, No, no, nope, not currently. I haven't had 0:01:50.280 --> 0:01:54.680 Krispy Kreme in a really long time, but college years 0:01:54.720 --> 0:01:59.080 I remember it very well. Oh sure, yes, there was 0:01:59.120 --> 0:02:01.600 a there, there's one. I know, we're going to talk 0:02:01.600 --> 0:02:04.320 about it. But there's kind of a famous Krispy Kreme 0:02:05.240 --> 0:02:11.440 in Atlanta and one time my good friend was driving 0:02:11.520 --> 0:02:14.320 and the hot sign was on. If you don't know 0:02:14.320 --> 0:02:15.799 if that is, we'll talk about it more or later. 0:02:15.880 --> 0:02:18.239 But essentially it's just like there's hot fresh doughnuts. 0:02:18.360 --> 0:02:19.679 It tells you when the donuts are fresh. 0:02:19.760 --> 0:02:27.720 Yeah, And she made a very dangerous turn get into 0:02:27.840 --> 0:02:30.639 the Krispy Kreme and we later found out it's always on. 0:02:31.240 --> 0:02:36.440 Oh wow, that's great at that location at least it's 0:02:36.480 --> 0:02:36.920 always on. 0:02:39.639 --> 0:02:42.359 And I read that in multiple articles when I was 0:02:42.400 --> 0:02:45.880 studying studying, researching this is that people would take these 0:02:45.919 --> 0:02:47.240 turns to get into. 0:02:47.400 --> 0:02:49.800 Yeah, no, I have hot sign. I have seen that. 0:02:49.880 --> 0:02:51.760 I have witnessed that. I think I've been in the 0:02:51.800 --> 0:02:54.960 car when someone else did that. Yes, it is a 0:02:55.000 --> 0:02:57.760 pretty universal Atlanta experience. 0:02:58.720 --> 0:03:04.080 It is, indeed. And another friend of mine, she loves 0:03:04.120 --> 0:03:04.679 Krispy Kreme. 0:03:04.760 --> 0:03:09.760 She she's always texting me about Krispy Kreme has this 0:03:09.840 --> 0:03:14.200 new flavor, and I'm like, well, what, I'm glad you're 0:03:14.200 --> 0:03:15.240 excited about it. 0:03:15.280 --> 0:03:22.280 What newsletter are you on? But also I remembered that 0:03:23.840 --> 0:03:26.960 when I was in marching band, we used to sell 0:03:27.040 --> 0:03:31.760 Krispy Cream doughnuts as fundraising techniques totally, and one time 0:03:31.840 --> 0:03:36.720 I was selling them inside Walmart and I got kicked 0:03:36.720 --> 0:03:42.440 out for soliciting. And I still they were correct to 0:03:42.560 --> 0:03:45.480 kick me out, but I still chafe at the memory 0:03:45.480 --> 0:03:46.200 of the whole thing. 0:03:46.880 --> 0:03:53.560 Sure, yeah, yeah, yeah. I don't remember having access to 0:03:53.640 --> 0:03:58.080 Krispy Kreme anywhere when I was growing up, but in college, 0:03:58.200 --> 0:04:01.320 the first place that I lived was like downwind of 0:04:01.360 --> 0:04:04.760 a Krispy Kreme, and so I could tell just by 0:04:04.800 --> 0:04:08.760 walking outside whether or not the hot now sign was on. 0:04:09.760 --> 0:04:20.800 And it was horrifying. It was the most dangerous, wonderful things. 0:04:21.240 --> 0:04:24.960 Perhaps shockingly, I didn't actually eat that many at that 0:04:25.000 --> 0:04:26.839 point in my life because I was so broke. I 0:04:26.920 --> 0:04:30.560 just didn't have money to spend on donuts. But I 0:04:30.560 --> 0:04:31.320 guess that helps. 0:04:31.360 --> 0:04:40.800 Yeah, but uh yeah, oh it's wonderful and uh and yeah, yeah, 0:04:40.960 --> 0:04:44.120 I've got a very positive association with the brand from 0:04:44.480 --> 0:04:49.760 any number of like like office coffee hangouts or you know, 0:04:49.880 --> 0:04:52.119 like like family visits or stuff like that. 0:04:52.400 --> 0:04:52.679 Yeah. 0:04:53.760 --> 0:04:56.720 I do also have a lot of good associations with 0:04:57.880 --> 0:05:01.280 I don't know, and early morning where somebody in a 0:05:01.320 --> 0:05:03.640 dozen Krispey cream or something like that. It's just like 0:05:04.560 --> 0:05:08.440 nice and sweet, but it's not too sweet. They're generally 0:05:09.600 --> 0:05:11.800 pretty good because I'm very sensitive to sweet. 0:05:11.839 --> 0:05:13.880 So yeah, yeah, I was gonna say, you don't even 0:05:14.080 --> 0:05:17.159 enjoy sweet things that much. So if you have good 0:05:17.160 --> 0:05:19.440 feelings about it, then they're doing a good job. 0:05:19.640 --> 0:05:27.560 Yeah. Admittedly this is a long time ago, but but yeah, uh, okay, 0:05:28.080 --> 0:05:31.400 you can see our donut episode Jelly Donuts. 0:05:31.400 --> 0:05:35.120 We did it one on jelly donuts, not all donuts. 0:05:36.600 --> 0:05:39.279 All right, Well, all right, you can see that one. 0:05:39.640 --> 0:05:41.960 I would say biscuits is relevant. 0:05:42.400 --> 0:05:46.640 Related, sure maybe churros, Yeah, yeah. 0:05:46.440 --> 0:05:49.679 Yeah, I can see that. All right. But I guess 0:05:49.760 --> 0:05:51.359 this brings us to our question. 0:05:52.000 --> 0:06:00.919 Sure, Crispy Cream, what is it? Well, Krispy Cream is 0:06:01.000 --> 0:06:03.559 a brand of donuts and coffee that can be found 0:06:03.680 --> 0:06:08.320 in grocery stores and also that owns and franchises out 0:06:08.440 --> 0:06:12.280 donut shops. They focus on yeast raised doughnuts that are 0:06:12.480 --> 0:06:16.120 very airy and fluffy, very melt in your mouth. They 0:06:16.160 --> 0:06:19.960 come in your typical donut ring or toroid if you're nasty, 0:06:21.000 --> 0:06:24.039 with a thin sugar glaze and or a topper of 0:06:24.400 --> 0:06:27.640 only slightly thicker icing in flavors like chocolate or strawberry. 0:06:28.200 --> 0:06:31.240 They also have disc shaped doughnuts that are similarly glazed 0:06:31.279 --> 0:06:33.919 and or iced and filled with like jelly, custard or 0:06:34.240 --> 0:06:37.120 fluffy type of icing that they call cream with a 0:06:37.240 --> 0:06:40.680 K because that's how their name is spelled. You can 0:06:40.720 --> 0:06:44.040 buy them singly or more commonly by three, six or 0:06:44.080 --> 0:06:48.520 a dozen. For drinks, they have like plain coffee, iced coffee, 0:06:48.520 --> 0:06:51.119 and then a bunch of sweetened and flavored espresso drinks 0:06:51.120 --> 0:06:55.600 and blended frozen drinks. The shops and packaging are branded 0:06:55.680 --> 0:06:58.919 in like white and forest green, with a really like 0:06:59.000 --> 0:07:01.680 retro mid century kind of vibe. The shops are the 0:07:01.760 --> 0:07:03.640 kind of place that you might stop for a treat 0:07:03.680 --> 0:07:06.840 with the kids, you know, and they often feature a 0:07:06.920 --> 0:07:12.000 window into the donut machinery in the back and out front. 0:07:12.200 --> 0:07:16.280 Each shop that has that also has this red orange 0:07:16.360 --> 0:07:20.200 neon sign that says hot now that they turn on 0:07:20.560 --> 0:07:23.800 when fresh donuts are coming off the line. Maybe that 0:07:23.840 --> 0:07:26.240 shop has fresh donuts coming off the line all the time. 0:07:26.320 --> 0:07:29.960 I don't know their business. And yeah, these these donuts 0:07:30.000 --> 0:07:33.720 are often eaten for breakfast or a snack, like in 0:07:33.800 --> 0:07:36.119 group settings, right, like someone might pick up a dozen 0:07:36.160 --> 0:07:39.560 to bring to the office or to your mechanic or 0:07:39.560 --> 0:07:42.520 something like that, or maybe like as a weekend breakfast treat. 0:07:43.400 --> 0:07:48.000 The brand is kind of aggressively nostalgic and is very loved. 0:07:48.800 --> 0:07:54.400 It is sturdy and long lasting in exactly the way 0:07:54.400 --> 0:07:55.360 that its donuts are not. 0:07:58.240 --> 0:08:04.160 Yeah, it's got a vibe. It's got like a the 0:08:04.200 --> 0:08:07.120 whole look of the stores if you go in, if 0:08:07.160 --> 0:08:09.520 you actually go in and you can see the donuts, 0:08:10.080 --> 0:08:10.800 like the line. 0:08:11.160 --> 0:08:16.200 It's all very clean, very very spick and span, very shiny, 0:08:16.640 --> 0:08:20.040 you know, like they'll give you a little paper donut hat. Yes, 0:08:20.880 --> 0:08:22.840 it's not shaped like a donut, it's just you know, 0:08:22.880 --> 0:08:24.120 the little service hat. 0:08:24.280 --> 0:08:24.440 Right. 0:08:24.480 --> 0:08:29.080 I don't know what it's called anyway, Okay. Krispy Kream 0:08:29.160 --> 0:08:33.560 has several standard donuts and usually four ish limited time ones. 0:08:34.120 --> 0:08:38.360 The standard rings are original glazed, chocolate iced, and chocolate 0:08:38.360 --> 0:08:42.080 ice with rainbow sprinkles. These standard fills are glazed with 0:08:42.160 --> 0:08:46.920 raspberry jelly, glazed with lemon custard, chocolate iced with vanilla custard, 0:08:47.120 --> 0:08:50.800 and chocolate iced with that fluffy cream that I mentioned before. 0:08:51.520 --> 0:08:55.559 They do also have a single standard cake style donut 0:08:55.800 --> 0:08:58.200 at this very moment, which is a blueberry cake with 0:08:58.240 --> 0:09:01.760 that glaze on it, glazed a yeast raised cinnamon roll 0:09:02.880 --> 0:09:05.600 right now. They're limiteds are like spring and or Easter themed, 0:09:06.000 --> 0:09:09.520 like a filled donut with marshmallow flavored cream and a 0:09:09.559 --> 0:09:12.160 pastel yellow icing on top, with like cute little bunny 0:09:12.160 --> 0:09:14.520 face drawn on with chocolate drops for the eyes and nose, 0:09:14.520 --> 0:09:18.000 and then little candy ears. Yeah. Each franchise can choose 0:09:18.040 --> 0:09:22.000 which flavors to stock Their coffee drinks. Do come and 0:09:22.040 --> 0:09:25.560 write hot, iced and frozen with flavors like caramel or mocha. 0:09:26.360 --> 0:09:30.280 They do have an original glazed flavor of coffee. And 0:09:30.360 --> 0:09:35.320 I'm intrigued because I don't know what nervous. I don't 0:09:35.320 --> 0:09:38.280 know what flavor the glaze is like. It's glaze flavored 0:09:38.320 --> 0:09:48.400 like what is what? Anyways, the brand does also have 0:09:48.440 --> 0:09:52.360 a pretty popular fund raising program that lets organizations basically 0:09:52.440 --> 0:09:55.280 purchase goods at a discount and then sell them for profit, 0:09:55.679 --> 0:09:59.200 either via pre sale sale of digital coupons or by 0:09:59.440 --> 0:10:01.760 picking up a whole bunch of donuts to sell wherever 0:10:02.040 --> 0:10:06.280 except for inside a Walmart. Apparently, they also do catering 0:10:06.280 --> 0:10:08.560 if you'd like to order more than like four dozen 0:10:08.640 --> 0:10:13.360 at a time. And that's all at their shops. Some 0:10:13.400 --> 0:10:17.240 grocery stores and convenience stores sell Crispy Creame brand coffee 0:10:17.240 --> 0:10:20.240 to make it home, and donuts that are delivered in 0:10:20.360 --> 0:10:23.400 fresh daily from a local shop or production center. Some 0:10:23.520 --> 0:10:27.200 McDonald's I think currently only in Kentucky and Indiana do 0:10:27.440 --> 0:10:32.960 also sell individual donuts. Yeah, yeah, that's new. But anyway, 0:10:33.200 --> 0:10:35.559 this is all in the United States. Shops in other 0:10:35.600 --> 0:10:40.360 countries which do exist have other flavors and stuff. For example, 0:10:40.400 --> 0:10:43.600 in the UK, they have options like a chocolate hazelnut 0:10:43.640 --> 0:10:46.920 filled donut you know, Natella type style one filled with 0:10:47.080 --> 0:10:50.280 strawberry cream, a ring dipped in a milk and white 0:10:50.320 --> 0:10:54.640 chocolate icing, and a bisc Off Co branded donut filled 0:10:54.679 --> 0:10:57.760 with Biscoff flavored cream and topped with a biscof spread 0:10:57.800 --> 0:11:02.440 and biscoff crumbles. It's a it's a lot of bit. 0:11:02.480 --> 0:11:07.560 It's very biscoffee. They have had similar limited time options 0:11:07.559 --> 0:11:09.600 in the States, but I have I have the idea 0:11:09.640 --> 0:11:12.959 that that that that bisk Off one is more permanent. Anyway, 0:11:14.160 --> 0:11:16.720 the system that they have worked out to produce and 0:11:16.800 --> 0:11:20.920 distribute all of these donuts is pretty intricate. So like 0:11:21.000 --> 0:11:24.240 they do have regional donut factories to help supply fresh 0:11:24.320 --> 0:11:27.760 doughnuts to shops that do not produce their own, along 0:11:27.800 --> 0:11:30.880 with supplying to other vendors like carts and food trucks 0:11:30.880 --> 0:11:35.840 and grocery stores. But those stores with the machinery in 0:11:35.880 --> 0:11:39.520 the back and the hot Now sign out front can 0:11:39.559 --> 0:11:42.880 be self sustaining and can even provide product for those 0:11:42.920 --> 0:11:48.320 other vendors Locally, they're called factory stores or in business lingo, 0:11:48.440 --> 0:11:53.160 the hot light theater shops. Oh I read. I read 0:11:53.200 --> 0:11:59.040 a lot of investor relations information while preparing for this episode, 0:11:59.120 --> 0:12:03.080 and it's really funny. They just just all investor relations material. 0:12:03.280 --> 0:12:04.240 Is really funny. 0:12:05.000 --> 0:12:06.000 Why not? 0:12:06.160 --> 0:12:10.040 No way that it intends to be at any rate. Yes, 0:12:10.200 --> 0:12:13.280 deliveries from these places to other places that sell them 0:12:13.600 --> 0:12:18.240 are made daily, and they also have manufacturing facilities where 0:12:18.280 --> 0:12:21.800 they blend and package the ingredients for their products, including 0:12:21.880 --> 0:12:25.680 donut mixes, the specific sugar and yeast that they use, 0:12:25.760 --> 0:12:30.560 and also the filling mixes, and right in the factory stores, 0:12:30.880 --> 0:12:34.600 you can peek in on the machinery. Back when our 0:12:34.720 --> 0:12:37.760 original company that we were podcasting under, How Stuff Works, 0:12:38.320 --> 0:12:41.880 was still based in North Carolina, in like the early Oughts, 0:12:42.480 --> 0:12:46.560 they took a tour and explained how it all worked. 0:12:47.679 --> 0:12:50.520 Since then, the physical machinery is still pretty much the same. 0:12:50.960 --> 0:12:54.240 I suspect it's been that way since way before then, actually, 0:12:54.320 --> 0:12:57.520 but they have updated their drives and controllers to make 0:12:57.559 --> 0:13:00.640 everything more easily monitored. And a fish a little bit 0:13:00.679 --> 0:13:03.560 more in that on that in the history section. But yes, So, 0:13:04.000 --> 0:13:07.600 in order to create a crispy cream donut, the donut 0:13:07.640 --> 0:13:10.040 mix is added to some water in yeast, and then 0:13:10.240 --> 0:13:14.440 the rings are formed by an extrusion machine. It's the 0:13:14.520 --> 0:13:17.640 kind of thing that uses pressurized air to force the 0:13:17.679 --> 0:13:20.320 dough through a ring shaped tube and then we'll slice 0:13:20.440 --> 0:13:25.120 each separate donut off at the other end. No donuts 0:13:25.160 --> 0:13:27.400 never have a hole that needs to be punched out. 0:13:30.120 --> 0:13:34.079 That's a marketing thing for filled donuts, the ring shaped 0:13:34.080 --> 0:13:35.959 tube is swapped out for just a cylinder that makes 0:13:35.960 --> 0:13:40.000 a solid circle. Anyway, the extruder deposits the rings or 0:13:40.080 --> 0:13:42.880 circles on a conveyor belt that brings them to the proofer. 0:13:43.320 --> 0:13:45.880 And this is a big glass box with a controlled 0:13:45.920 --> 0:13:49.200 heat and humidity inside to help the dough proof. That 0:13:49.280 --> 0:13:51.360 is for the yeast to get to work and make 0:13:51.360 --> 0:13:54.760 the dough rise. Baker's yeast, as we have talked about before, 0:13:55.040 --> 0:13:59.600 eats sugar and poops carbon dioxide and flavor yeast fool. 0:14:01.360 --> 0:14:04.280 The carbon dioxide bubbles will stretch out the dough and 0:14:04.400 --> 0:14:07.480 make it puff out. The process takes like fifteen to 0:14:07.520 --> 0:14:10.720 twenty minutes, and the doughnuts zigzag through the box on 0:14:10.920 --> 0:14:13.800 these conveyor trays at just the right speed so that 0:14:13.800 --> 0:14:15.960 when they reach the end of the box they're ready 0:14:16.040 --> 0:14:19.040 to be cooked. The machine then tips them out onto 0:14:19.080 --> 0:14:22.920 another conveyor belt, which pulls the donuts through a bath 0:14:23.000 --> 0:14:27.320 of hot oil. The conveyor belt has these bars just 0:14:27.440 --> 0:14:30.400 tall enough to trap rows of doughnuts in place and 0:14:30.520 --> 0:14:33.920 let them float through the oil. It's a little bit 0:14:34.000 --> 0:14:37.920 like how in some theme park water rides the cars 0:14:38.080 --> 0:14:42.640 do like a controlled float yeah, except through hot oil 0:14:42.760 --> 0:14:49.240 not water. Since the donuts are floating, only one side 0:14:49.360 --> 0:14:52.680 will cook, so halfway through the bath, this rotating arm 0:14:52.920 --> 0:14:56.400 flips them over from underneath. It takes about forty five 0:14:56.480 --> 0:14:59.560 seconds on each side. And I don't know if this 0:14:59.600 --> 0:15:01.560 is still accurate, but at least as of the early 0:15:01.600 --> 0:15:04.440 two thousands, a few times a day a manager like 0:15:04.640 --> 0:15:07.640 checks and make sure that the timing is just right 0:15:07.800 --> 0:15:11.160 on both the proofing and the frying end, because, as 0:15:11.160 --> 0:15:14.080 anyone who's ever gotten into baking knows, all kinds of 0:15:14.200 --> 0:15:17.680 environmental factors can affect dough and cook times even in 0:15:17.720 --> 0:15:23.280 a relatively controlled kitchen environment. The belt will deposit be 0:15:23.360 --> 0:15:26.240 fried doughnuts onto a cooling belt, and then when they're 0:15:26.320 --> 0:15:29.400 a little bit cooler, the doughnuts destined to be glazed 0:15:29.440 --> 0:15:32.400 are pulled under the sort of waterfall of liquid glaze 0:15:32.400 --> 0:15:36.480 made of sugar and water and stuff basically flavors and 0:15:36.560 --> 0:15:38.560 a lot of things to help make the texture just right. 0:15:40.480 --> 0:15:44.400 And when that hot now sign is on, an employee 0:15:44.440 --> 0:15:47.000 will pull donuts right off of the glazing belt and 0:15:47.080 --> 0:15:50.240 box them up for you. And if you order something 0:15:50.280 --> 0:15:53.400 like chocolate ice, just hand dip the chocolate icing on. 0:15:53.960 --> 0:15:56.040 If they're meant to be sent out for delivery elsewhere, though, 0:15:56.040 --> 0:15:58.240 they're allowed to cool for another forty minutes or so 0:15:58.320 --> 0:16:01.120 on a long slow ride back to the packing room 0:16:01.200 --> 0:16:03.360 so that the glaze has time to stiffen up a bit. 0:16:04.120 --> 0:16:06.200 You can get almost crackly when it's dry, which is 0:16:06.280 --> 0:16:09.720 nice for the package donuts. Any icing will be applied 0:16:09.760 --> 0:16:14.560 with another waterfall type machine. They're then handboxed, loaded into trays, 0:16:14.640 --> 0:16:19.920 and loaded into company run delivery trucks. Filled donuts are 0:16:20.640 --> 0:16:23.000 super cool. Okay, they're filled by hand with the help 0:16:23.040 --> 0:16:25.880 of a machine that the filling gets mixed together and 0:16:25.960 --> 0:16:28.400 then poured into this tank that's attached to a pump, 0:16:28.920 --> 0:16:31.480 and the pump can feed the exact right amount of 0:16:31.480 --> 0:16:36.280 filling out through this long, sharp ended nozzle and two 0:16:36.400 --> 0:16:39.120 nozzles sit side by side, so a worker can take 0:16:39.120 --> 0:16:42.280 a pair of donuts, slide them onto the nozzles, and 0:16:42.320 --> 0:16:44.920 then push a button in under the nozzles to activate 0:16:44.960 --> 0:16:47.640 the pump, and then pull the donuts off the nozzles 0:16:47.640 --> 0:16:50.200 as the filling is injected, so that it goes in evenly. 0:16:52.840 --> 0:16:54.840 It's just really simple, but like really cool. 0:16:54.960 --> 0:16:59.480 Yeah, this is really cool. I mean it's me if 0:16:59.520 --> 0:17:02.520 you go in it is very it feels like one 0:17:02.520 --> 0:17:06.040 of those very touristy you want. Yeah, something get made, 0:17:06.119 --> 0:17:07.639 which we are going to talk about a little bit 0:17:07.680 --> 0:17:11.280 in his rejection. But yeah, it's fun. 0:17:11.600 --> 0:17:14.919 Watching how stuff gets made is a whole thing. Yeah, 0:17:15.000 --> 0:17:15.359 it is. 0:17:16.880 --> 0:17:22.679 It is part of why we're here. M Well, what 0:17:22.960 --> 0:17:24.040 about the nutrition. 0:17:24.359 --> 0:17:27.480 Oh, treats are nice. Treats are nice. 0:17:27.840 --> 0:17:32.800 Treats are nice. Well, we do have some numbers for you. 0:17:33.080 --> 0:17:37.600 Oh, quite a few see above read and investor relation papers. Okay, So, 0:17:38.960 --> 0:17:43.240 as of the early two thousands, Krispy Kreme's largest factory 0:17:43.280 --> 0:17:46.200 shops could produce eight hundred and eighty donuts an hour. 0:17:48.720 --> 0:17:52.840 Uh huh. Today, getting a factory shop up and running 0:17:52.960 --> 0:17:56.959 costs between two to five million dollars. There is a 0:17:57.000 --> 0:17:59.879 real fancy one in Times Square that costs ten million 0:18:00.000 --> 0:18:02.400 when it opened in twenty twenty. If anyone has been, 0:18:02.720 --> 0:18:04.480 let me know it sounds real. 0:18:04.520 --> 0:18:07.640 Goofy. It does a note when it opened. 0:18:08.800 --> 0:18:16.600 Oh yeah, right and interesting. As of twenty twenty four, 0:18:16.720 --> 0:18:19.520 Krispy Kreme had three hundred and ninety four factory shops 0:18:19.560 --> 0:18:22.959 around the world, plus another one thousand, six hundred and 0:18:22.960 --> 0:18:25.640 eighty four shops that do not produce their own donuts, 0:18:26.240 --> 0:18:31.840 and over fifteen thousand other vendors, for a total worldwide 0:18:32.160 --> 0:18:35.199 of seventeen thousand, five hundred and fifty seven places that 0:18:35.240 --> 0:18:36.480 you can buy at Krispy Kreme. 0:18:37.760 --> 0:18:42.520 Wow. Yeah, they've got fans. They've got a fan base. 0:18:43.480 --> 0:18:47.400 Interesting machine. Yeah. About half their shops are franchisees, half 0:18:47.400 --> 0:18:51.359 her company owned. Together, they employ some twenty two thousand, 0:18:51.440 --> 0:18:54.800 eight hundred people. In twenty twenty four, the company made 0:18:54.800 --> 0:18:58.760 a net revenue of one point six billion dollars. Along 0:18:58.800 --> 0:19:02.560 the fundraiser line, apparently, Krispy Kreme earned over forty three 0:19:02.600 --> 0:19:05.960 million dollars for about one hundred thousand organizations in twenty 0:19:06.000 --> 0:19:10.119 twenty three alone. They are an international company, but do 0:19:10.200 --> 0:19:13.160 about sixty percent of their business in the United States, 0:19:14.119 --> 0:19:17.560 and as of twenty twenty the company was selling about 0:19:17.560 --> 0:19:23.320 one point three billion donuts a year, sixty four percent 0:19:23.400 --> 0:19:26.399 of which was the original glazed. 0:19:27.720 --> 0:19:28.120 Wow. 0:19:28.840 --> 0:19:35.080 Yeah, a lot of donuts. It's a whole bunch of donuts. 0:19:35.880 --> 0:19:39.440 But they started they started mid sized. Actually, I feel 0:19:39.440 --> 0:19:40.720 like they always kind of had a plan. 0:19:42.080 --> 0:19:45.560 I think they did. And what is comical to me 0:19:46.160 --> 0:19:49.000 is that they realized early on. You know what, the 0:19:49.200 --> 0:19:53.800 smell business, oh spelling of the hot fresh donuts is 0:19:53.880 --> 0:19:56.520 important to our business. So there is quite a history. 0:19:57.200 --> 0:19:59.399 Yes, yes, and we are going to get into that 0:19:59.440 --> 0:20:00.920 as soon as we get back from a quick break. 0:20:00.920 --> 0:20:12.080 For a word from our sponsors, and we're back. 0:20:12.119 --> 0:20:16.200 Thank you sponsor, Yes, thank you. Well again see our 0:20:16.280 --> 0:20:22.080 jelly donut episode. I guess we haven't done just a 0:20:22.119 --> 0:20:23.160 donut one yet. 0:20:24.760 --> 0:20:25.760 I'm sorry. 0:20:27.480 --> 0:20:33.760 Foiled again, but yes. Krispy Kreme was the brainchild of 0:20:34.080 --> 0:20:38.159 Vernon Rudolph during the Great Depression. Rudolph, like many others, 0:20:38.240 --> 0:20:40.440 was trying to find a way to make a living 0:20:41.480 --> 0:20:44.720 when things were pretty grim, so he got the idea 0:20:44.760 --> 0:20:48.720 of opening a donut shop. He purchased a recipe for 0:20:48.760 --> 0:20:51.119 a yeast raised donut from a chef out of New 0:20:51.240 --> 0:20:54.359 Orleans in nineteen thirty three. There's a lot of a 0:20:54.400 --> 0:20:56.320 lot of debate over who that was or if it 0:20:56.359 --> 0:21:00.320 was true, but that's the story. That same year, he 0:21:00.400 --> 0:21:05.480 opened a doughnut shop in Paducah, Kentucky. Okay. At this 0:21:05.600 --> 0:21:07.919 point things get a little messy because a lot of 0:21:07.960 --> 0:21:11.679 places like to claim they're the birthplace of the first 0:21:11.760 --> 0:21:15.840 Krispy Kreme, especially state websites. 0:21:16.440 --> 0:21:19.800 Oh okay, oh yes, but here it goes. 0:21:20.320 --> 0:21:22.920 A few cities do lay claim to the first official 0:21:23.119 --> 0:21:29.639 Krispy Kreme, and there are some technicalities involved. National claims 0:21:29.640 --> 0:21:32.040 that the first official Krispy Kreme was opened there by 0:21:32.080 --> 0:21:37.040 Rudolph and Ishmael Armstrong, who was Rudolph's uncle and business partner, 0:21:37.160 --> 0:21:40.760 in nineteen thirty seven. Soon after that one was opened, 0:21:40.800 --> 0:21:44.080 a few members of Rudolph's family opened stores in Atlanta, Georgia, 0:21:44.200 --> 0:21:47.800 and Charleston, West Virginia. So those cities they also get 0:21:47.800 --> 0:21:53.320 in on this whole thing, yes, But with dreams of 0:21:53.400 --> 0:21:57.520 owning his own store without a partner, Rudolph moved on 0:21:57.760 --> 0:22:01.240 to Winston Salem, North Carolina, and opened a Krispy Kremes 0:22:01.240 --> 0:22:04.720 store there on July thirteenth, nineteen thirty seven, which yes, 0:22:04.840 --> 0:22:07.960 is the same year as the one in Tennessee. But 0:22:09.119 --> 0:22:13.320 he was on the move. He was quick. Allegedly, he 0:22:13.359 --> 0:22:16.199 didn't have enough money to buy the ingredients he needed 0:22:16.320 --> 0:22:18.400 in the beginning to make these donuts, so he made 0:22:18.440 --> 0:22:21.639 a deal with grocery stores to pay them for the 0:22:21.800 --> 0:22:25.080 ingredients as soon as he earned the money from his store. 0:22:25.800 --> 0:22:29.240 And I guess they went with it. At first, Rudolph 0:22:29.240 --> 0:22:31.040 would make the donuts in the store and then sell 0:22:31.080 --> 0:22:35.000 them to these local grocery stores. But yes, as many 0:22:35.000 --> 0:22:38.679 of us know, the smell of fresh hot donuts is 0:22:38.760 --> 0:22:43.200 like a siren's call, so passerby started visiting the store 0:22:43.200 --> 0:22:48.840 directly wanting to buy them. So the story goes that 0:22:48.960 --> 0:22:52.800 Rudolph cut a hole in the wall so he could 0:22:52.840 --> 0:22:57.800 sell the donuts straight to customers. This also allowed customers 0:22:57.840 --> 0:22:59.879 to see some of the production, which they really in. 0:23:00.440 --> 0:23:04.359 It showcased how clean and modern the facility was. It 0:23:04.480 --> 0:23:08.600 was very kind of touristy. As we mentioned, the first 0:23:08.600 --> 0:23:12.840 doughnuts he sold are essentially what the company now labels 0:23:13.000 --> 0:23:17.840 the original glazed and people really dug the product, and 0:23:18.560 --> 0:23:21.800 in the nineteen forties and fifties, Crispy Cream expanded throughout 0:23:21.800 --> 0:23:26.520 the Southeast. With the expansion came some growing pains though. 0:23:27.600 --> 0:23:31.040 For one, all the doughnuts were made from scratch, which 0:23:31.080 --> 0:23:35.879 resulted in a pretty inconsistent product, just not what a 0:23:35.880 --> 0:23:39.919 lot of these stores wanted at the time. So to 0:23:39.960 --> 0:23:43.879 counter that, Rudolph opened a mixing plant just for Krispy 0:23:43.960 --> 0:23:48.240 Cream donuts. Each store received deliveries of dry dough from 0:23:48.320 --> 0:23:52.480 the plant, and the next step was developing mechanized donut 0:23:52.480 --> 0:23:56.480 making equipment that cooked and glazed the donuts, speeding up 0:23:56.480 --> 0:24:01.679 the whole process. Then nineteen sixties, the look of the 0:24:01.720 --> 0:24:04.680 stores was standardized as well, with the tiled green roof 0:24:04.800 --> 0:24:08.680 and the sign that we're familiar with. From there, locations 0:24:08.720 --> 0:24:14.679 began opening up outside of the Southeast. Rudolph himself died 0:24:14.800 --> 0:24:18.240 in nineteen seventy three, and his family sold the chain 0:24:18.440 --> 0:24:22.760 to Beatrice Foods Company a few years later, and for 0:24:22.960 --> 0:24:30.600 many franchisees this was unpopular. Moves oh yeah, oh wow. 0:24:30.800 --> 0:24:34.840 The recipe was changed to cut costs, the sign was changed. 0:24:35.680 --> 0:24:40.840 So in response, Joe mcalar spearheaded an effort with other 0:24:41.119 --> 0:24:44.119 early franchisees to come together to buy the company in 0:24:44.200 --> 0:24:48.040 nineteen eighty two, which they did. One of the first 0:24:48.160 --> 0:24:51.280 acts of business was to reverse these changes. 0:24:52.480 --> 0:24:52.680 Yeah. 0:24:53.080 --> 0:24:54.040 They were not having it. 0:24:55.080 --> 0:24:56.679 They were like, no, we know how to make our donuts, 0:24:56.720 --> 0:24:57.640 don't you tell us? 0:24:58.000 --> 0:25:04.160 Right? Ridiculous. The infamous hot light was introduced to nineteen 0:25:04.240 --> 0:25:08.960 ninety two, and by nineteen ninety nine Krispy Kremes they 0:25:09.000 --> 0:25:12.800 operated nationwide. A few years later, the business went international, 0:25:12.920 --> 0:25:14.680 opening a store in Canada. 0:25:15.400 --> 0:25:19.080 They went public in the year two thousand and then. 0:25:20.080 --> 0:25:22.439 This is a little bit of a sidebar, but in 0:25:22.440 --> 0:25:26.120 two thousand and eight researchers out of Northwestern University did 0:25:26.119 --> 0:25:29.359 a small study about how hunger affects our self control 0:25:29.680 --> 0:25:33.480