To do so, it is changing its strategy. As of now, its existing stores sell donuts retail and wholesale. Some of its new stores, which will be smaller and cheaper to build and operate, will sell only retail.
Originally, Krispy Kreme was primarily a wholesaler, which required big spaces that ranged from 4,000 to 6,000 square feet and included a retail area, a manufacturing area, and a loading dock. The chain started developing its retail business in the mid-1990s, but even the smaller factories were about 2,800 square feet. Sales fell through the late 2000s. The new design, which is exclusively for retail, measures about 2,300 square feet, and the stores will be able to produce from 65 to 110 dozen doughnuts per hour, compared with 150 to 600 dozen at traditional factories, according to Businessweek.
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