McDonald’s to sell Krispy Kreme donuts in latest menu experiment

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McDonald’s sell Crispi Kreme donuts in some restaurants later this month for the first time.

Starting October 26, the fast food giant will be selling Krispy Kreme donuts at nine locations in Louisville, Kentucky, as part of a test. McDonald’s said the test will help it learn more about how the collaboration with Krispy Kreme will impact its operations.

McDonald’s customers will be able to order original glazed donuts with chocolate icing and sprinkles and raspberry filling both individually and in packs of six. Participating McDonald’s locations will be selling donuts all day, but treats will not be available for delivery.

Krispy Kreme will deliver fresh donuts to McDonald’s restaurants daily, according to McDonald’s. The donut chain uses a “hub and spoke” model that allows for efficient production and distribution of treats. Production centers, which are either shops or donut factories, ship freshly made donuts every day to retail outlets such as grocery stores and gas stations.

The test comes as consumers cut back on restaurant visits as rising inflation puts pressure on budgets. To bring customers back to restaurants, chains are experimenting with new menu items and promotions.

In the first half of the year, McDonald’s said low-income consumers in the US were spending less at their restaurants. Krispy Kreme CEO Mike Tattersfield, on the other hand, said his chain has strong pricing because customers are willing to spend money on affordable treats like fresh donuts.

In the second quarter, Krispy Kreme reported a 7.5% increase in revenue for its unit in the US and Canada. But he cut his full-year earnings and revenue guidance, citing a stronger dollar and weaker performance from U.S. manufacturing centers that don’t ship goods elsewhere.

This is not the first time that fast food chains have used donuts to attract customers. In 2020, KFC launched the Fried Chicken and Donut Sandwich across the country after tests of the product drew attention on social media.

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