herald

Friday 20 September 2019

Hole lot of dough - Krispy Kreme store brings in €3.86m revenue

Aidan McGovern (6) at the store shortly after it opened
Aidan McGovern (6) at the store shortly after it opened

The record-breaking Krispy Kreme doughnut store at Blanchardstown in Dublin enjoyed average weekly revenues of almost €300,000 last year.

That is according to the business's first set of accounts, which show that from September 29 to the end of December, Krispy Kreme Ireland recorded revenues of €3.86m - or an average weekly revenue of €293,695.

The spend by customers works out at an average of €41,956 a day.

The stellar financial performance comes as little surprise as the store's opening was greeted by a consumer mania not seen in Ireland in recent years.

There was a queue of 300 people when the store opened its doors at 7am on September 29, thousands of customers streaming through the doors on the first day to make the opening the biggest occasion for Krispy Kreme across the world.

Soon after, the store ceased its 24/7 drive-through operation because of multiple complaints from local residents prompted by endless queues of people eager for doughnuts at all hours of the night.

During the height of the craze for the likes of the original glazed doughnut, residents were posting footage on social media of cars beeping their horns while motorists waited for service in the middle of the night.

A spokesman for Krispy Kreme Ireland said yesterday that the store remained "the best performing" Krispy Kreme store across the 1,300-strong network in 31 countries.

Glazed

The spokesman said: "We are really pleased with how Krispy Kreme and the Theatre Store in Blanchardstown has been received by the Irish market.

"The store outperformed our expectations and continues to be performing successfully in 2019."

The spokesman added that "despite the large number of markets Krispy Kreme operate in, there is one thing common to all markets - our iconic original glazed doughnut is always the most popular one".

"We noticed a slight preference to other flavour variants such as lotus biscoff and cookies and kreme in Ireland, but original glazed was the customers' choice here as well," he said.

In order to cater for the continuing demand for Krispy Kreme doughnuts, the store currently opens from 7am to 12am Monday to Saturday and 8am to 12am on Sundays, while the store's drive-through operates from 6am to 11.30pm Monday to Sunday.

The strong revenues enjoyed by the business resulted in the firm recording operating profits of €579,000 for the 13-and-a-half week period of the store operating last year.

Finance charges of €34,000 reduced the profits to a pre-tax profit of €545,000. The company recorded a post-tax profit of €457,000 after paying corporation tax of €88,000.

The company's cost of sales totalled €1.55m, resulting in a gross profit of €2.3m. The profit takes account of non-cash depreciation costs of €106,000.

"We are looking to open more stores in to Ireland in the future," a spokesman added.

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