McDonald’s and Krispy Kreme have ended their doughnut partnership, citing unmet cost expectations. The collaboration, launched in March 2024, aimed to sell Krispy Kreme doughnuts at all US McDonald’s locations by the end of 2026. However, demand dropped below projections, making it unsustainable for Krispy Kreme. CEO Josh Charlesworth stated that efforts to align costs with unit demand were unsuccessful.
The partnership will terminate on July 2. While the collaboration met expectations for McDonald’s and its Owner/Operators, Krispy Kreme needed a profitable business model. McDonald’s USA’s chief marketing and customer experience officer Alyssa Buetikofer noted that Krispy Kreme delivered high-quality products, but not at a cost-effective level.
Krispy Kreme will focus on drive sustainable growth by expanding into more locations through retail points of distribution and international franchise growth. This represents a small part of McDonald’s breakfast business strategy, which is a core pillar of the company’s plan.
Source: https://www.foxbusiness.com/lifestyle/mcdonalds-krispy-kreme-end-doughnut-partnership