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McDonald’s will be selling Krispy Kreme donuts in select restaurants for the first time later this month.
Beginning Oct. 26, fast food giant Krispy Kreme will be selling donuts at nine locations in the Louisville, Kentucky area, as part of a test. McDonald’s said the test will help the company learn more about how a partnership with Krispy Kreme would affect its business.
McDonald’s customers can order the original glazed, chocolate sprinkles and raspberry-filled donuts individually or in packs of six. Participating McDonald’s locations will sell the donuts all day, but the treats will not be available for delivery.
Krispy Kreme supplies fresh donuts to McDonald’s restaurants every day, according to McDonald’s. The donut chain uses a “hub and spoke” model that allows it to efficiently create and distribute its treats. Production hubs, either retail stores or donut factories, send freshly made donuts to retail locations such as supermarkets and gas stations every day.
The test comes as consumers have cut back on restaurant visits as rising inflation is putting pressure on budgets. To get customers back into restaurants, chains have been experimenting with new menu items and promotions.
In the first half of the year, McDonald’s said lower-income consumers in the US spent less at its restaurants. Krispy Kreme CEO Mike Tattersfield, on the other hand, has said his chain has strong pricing power because customers are willing to splurge on affordable treats like fresh donuts.
In the second quarter, Krispy Kreme reported sales growth of 7.5% for the US and Canada divisions. But it lowered its full-year forecast for revenue and earnings, citing a stronger dollar and weaker performance from US manufacturing hubs not delivering to other locations.
It’s not the first time fast food chains have leaned on donuts to attract customers. In 2020, KFC launched a “Fried Chicken and Donut” sandwich nationwide after tests of the item drew attention on social media.