Krispy Kreme Global President and COO, Josh Charlesworth, also plans to enhance eCommerce and loyalty programs to increase purchase frequency, responding to the strong consumer demand for such programs.
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GLOKrispy Kreme is strategically investing in digital platforms to expand its reach among Generation Z, a demographic that heavily relies on online channels for food ordering decisions. The global sweet treats brand, boasting 2,100 shops and over 13,000 access points worldwide, revealed in its Q3 2023 earnings report that eCommerce now constitutes 19% of its sales, experiencing a $4.8 million growth in its digital business.
During discussions with analysts, Krispy Kreme Global President and COO, Josh Charlesworth, highlighted the brand’s emphasis on social media, including collaborations with influencers popular among Gen Z, to connect with digital consumers. The success of partnerships, such as the Strawberry Glazed Doughnut collaboration with Hailey Bieber, exemplifies the brand’s ability to engage younger consumers beyond traditional seasonal occasions.
Charlesworth emphasized the brand’s growth among valuable younger consumers, with 18- to 34-year-olds now comprising 40% of the U.S. consumer base, up from 33% a year ago. The company is capitalizing on the digital-savvy nature of these consumers by leveraging social media to reach them outside of conventional occasions.
Krispy Kreme’s digital penetration has been boosted by its Insomnia Cookies subsidiary’s expertise, acquired in 2018. Despite recently putting Insomnia Cookies up for sale, the company acknowledges its contribution to strengthening the eCommerce and digital platform, with digital orders now representing approximately 20% of consolidated retail sales.
CEO Mike Tattersfield mentioned exploring strategic alternatives for Insomnia Cookies to enhance growth trajectories and allow Krispy Kreme to concentrate on its core strategy of producing, selling, and distributing fresh donuts daily. Charlesworth also outlined plans to enhance eCommerce and loyalty programs to increase purchase frequency, responding to the strong consumer demand for such programs, as highlighted in previous studies on restaurant loyalty program adoption.
