Everyone loves a decadent treat, but how many times can you
indulge? That’s the question two baked-goods specialists are addressing in new
bids to boost traffic, and the answers are as different as cake and pie.
Krispy Kreme walked investors through new research yesterday
on the public’s perception of donuts in general and the chain’s brand in
particular. Among the bombshell findings cited: People like donuts.
In fact, explained Kripsy execs, consumers said they want more
excuses to eat donuts, presumably without guilt. Respondents said they’ll eat
‘em anytime, day or night, if there’s half a reason. And Krispy has an edge,
the officials continued, because it’s an iconic brand that provides an
experience, from the Hot Doughnuts Now sign to servers’ retro paper hats,
rather than just a sugar jolt.
So, explained CEO James Morgan, “the domestic menu
needs to stay close to the core donut offering.” The strategy will be to give patrons more
occasions where a donut and a coffee would be appropriate.
Contrast that approach with the exploration
underway by Cinnabon, the cinnamon bun meister.
Specializing in a gooey delight means you might not have as many visits
per week from customers as you might like. But complicating the challenge is
Cinnabon’s concentration in malls, where you’re not going to get an impulse buy
from someone walking down the street in a search for lunch options.
In a surprise to no one, Cinnabon is testing savory options,
including a mini fresh-baked pizza, a line of breakfast sandwiches, and
croissants. Right now the experiment is
being conducted at just one unit.
It’s not ignoring the allure of treats. One of
the products on the trial menu is a cupcake, for instance.
But unlike Krispy, Cinnabon is figuring that a
treat is a treat because it’s a rare indulgence.
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