How a CEO Almost Killed a $Billion Company - A Case Study For Entrepreneurs

Here's where Krispy Kreme really went down from someone that used to be married to a manager there. It was their expansion into the grocery stores. They made a deal that whatever didn't sell would be returned to the store for full credit. Also, the doughnuts that you get in the store are what you get a the grocery store. My wife made them at the store for shipment. But a lot of the grocery stores would make their own doughnuts and they would stick the KK in the corner so they wouldn't sell better then the grocery store's own brands. Thus the stores were forced to take back hundreds of boxes of unsold doughnuts that they would then throw away. Also, giving a a hot doughnut to everyone for free was a dumb idea. They should've had a sample size because most people would get a free doughnut for the whole family and then leave without ever buying anything. It was clear that the top brass didn't know what they were doing and the company went from riding high, to down in the dumps. They closed all the locations in my area and for awhile the stock was worthless. It was a sad time.

As a consumer, it seems to me that selling in supermarkets, convenience stores, etc., stabbed the franchisees in the back. All the franchise locations in my area closed soon after, and have never reopened.

The first rule should always be:. Don't go public, unless you're cashing out.

"Is there anything donuts can't do?"--- Homer Simpson

The biggest problem KK has now is their horrible coffee. You cannot sell donuts, especially up north, when you have terrible coffee. It's that simple.

Don't do it for the money, money is temporary, customers are for ever. Nice

Well done! Really enjoyed how thorough this was.

Just discovered this channel and I'm loving it!! I knew the sordid history of Krispy Kreme via one of its franchisees that lived through the early public years. I'm hooked on these analytics..very entertaining and (finally) something on youtube that leaves it's viewers better informed for watching!!

Its been a while that I have been following your channel and find it very interesting. I even check your website and its supercool. Carry on the good work guys.

Even though I grew up with American culture, I do appreciate that you are considerate enough of your global audience to help explain some of the cultural references you make.

Love these lessons and how clearly you explained them!! (and repeated them at the end on the left) Your clarity and quality just keep improving!

Great case study Doc - know what your brand stands for is my favorite take away. So simple and you hit on it in almost every case study and still amazing how super smart people keep making this mistake on a grand scale. Someday I'd love to hear more about a CEO's compensation for turnaround experts like James Morgan - how are they enticed over and then compensated for the progress?

I'm curious on the net profit for 2012? "What accounting things? " Please clarify.

I try my best to avoid buying krispy kreme. I can't control myself, I bought a six pack and ate it all in one day. Too much sugary bread makes me depressed. I have no choice but to place a complete moratorium on kk.

Love these case studies. Presented in a way that made it simple but very professional and all I can say I love it. please keep them coming !! You have a new fan and Thank you for helping me !

Biz Doc....you are the undisputed CHAMP of business case studies online.....each and every single one is extremely well researched & impeccably presented. I applaud you for it.

I love these Case Studies! Could we get one for Chick-Fil-A in the future please?

I love these case studies! Thank you!!!

First time seeing anything from your channel and it's great. Everything is very clear and concise and put together pretty perfectly. Kudos, keep up the great work.

Fantastic channel! I just found you guys and am so excited. Please, keep up the good work!