Wednesday, June 19, 2024

Krispy Kreme plans to open 190 new outlets in Mexico this year

Krispy Kreme México plans to open as many as 190 sales locations this year, according to Javier Rancaño, the company’s director.

Mexico has become the company’s fastest growing market and could soon become the second largest market for its doughnuts after the United States, Rancaño told Forbes México.

During the pandemic, Krispy Kreme expanded doughnut sales in Oxxo convenience stores, supermarkets and by delivery, the director said. Its delivery options were popular, sometimes accounting for as much as 30% of total sales.

The main limitation on the business is not the market or level of demand but rather the logistics of distributing a perishable product and production infrastructure, Rancaño said. To that end, the company is reinvesting nearly all its profits into growth.

“We are reinvesting practically all the earnings from Mexico. During the next few years, the idea is to grow Mexico as much as we can because at the international level, Mexico is Krispy Kreme’s fastest growing market,” Rancaño said.

This year’s new locations represent an investment of several hundred million pesos, and the company has also started planning for a new factory in Querétaro.

At the moment, the United States is the largest market for its doughnuts globally, Rancaño shared. It is followed by three markets of similar size: the United Kingdom, Australia and Mexico.

With reports from Forbes México

Have something to say? Paid Subscribers get all access to make & read comments.
Department of Justice building

DOJ charges 24 in Sinaloa Cartel money laundering conspiracy

The U.S. said 24 people are part of a drug trafficking and money laundering conspiracy linking the Sinaloa Cartel to illicit banking in China.
A faucet with water coming out

Mexico City’s water supply from Cutzamala system to be shut off for repair

To repair a "sudden" leak in one of the system's control valves, authorities will cut off water on Wednesday night for six hours.
Tropical Storm One projection Cyclone Albert

Potential tropical cyclone approaches northeastern coast of Mexico

The potential tropical cyclone could become the first named storm of the hurricane season by Wednesday.