BUSINESS

Monday, March 1, 2:38 AM PST

Krispy Kreme Sending U.S. Stores to India, China

by Brent the Johnson,
NA!P NewsWire

WASHINGTON D.C. -- In the face of a recovering but jobless economy, Krispy Kreme has announced it will begin opening retail outlets in India and China while closing them in the U.S.

"It's really just a matter of numbers," said Scott Livengood, President and CEO of Krispy Kreme. "No one's getting work because it's all being sent offshore, so they aren't buying our doughnuts at the astronomic prices we have to charge."

Krispy Kreme indicated that wasn't the only reason for the U.S. closures, however, pointing out that the cost in savings will help improve customer sales.

"We used to charge $0.75 per standard unit," said CFO Michael Phalen. "Now people can get them for $0.28 per. If we can produce the same high-quality product at a much lower price, we can pass those savings on to our customer base. It's really win-win, you see."

Fans of Krispy Kreme, however, are infuriated with the company's move and are complaining loud and clear.

"If they think I'll continue to spend my money on them foreign-ass doughnuts, they got another thing coming," said Chet Maxfielder of Dallas. "Even if I have to got to go to Dunkin' Donuts to get my Jelly Filleds."

Livengood admits to being inundated with hate mail from doughnut fans, but he's standing his ground.

"You know, California makes us pay $6.75 minimum for freakin' doughnut slingers! Indians will do it for five cents an hour -- you do the math."

Furthermore, even if the company loses some of their customer base, they expect to make up for them with millions of new Indian and Chinese customers. Still, if the reaction of their hardcore U.S. fans are any indication, Krispy Kreme has nothing to worry about.

"I'll have to fly to get my daily dose of Original Glazed," said Kent Warblenach of Chicago, a long-time fan who recalls having to drive over state lines to get his Krispy Kreme pastries before the chain went national. "That, or FedEx them. Yeah, I'll probably FedEx them sometimes."

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