Success of Krispy Creme Doughnuts

Krispy Creme Doughnuts, Inc. competes with several industries, to include:

Ø Baked Goods Industry

Ø Food Industry

Ø Restaurant (Eating Places) Industry

Ø Cakes and Pastries

According to the National Restaurant Association, Americans will spend about $354 billion at the nation's more than 815,000 eating and drinking establishments. "Statistics indicate that restaurants have become an increasingly important part of American lifestyle over the past few decades" (Bread, Cake, and Related Products, 2003, ¶4).

When evaluating the restaurant industry, fast-food type restaurants like Krispy Kreme have led way, and the growth of franchising since the 1970s has also propelled the growth (franchises have almost tripled their share of the market). However, starting in the late 1990s, competition decreased in mature markets because they were becoming saturated with fast-food restaurants. During this time, the restaurant industry began to see an influx of themed-eating places trying to redefine their images. For example, T.G.I. Friday's began mostly as a single's bar, but evolved to a family-oriented dining place.

Another trend in the restaurant industry started in the mid-1990s when restaurants and supermarkets began to prepare foods for carry-out (commonly referred to as "home meal replacements"). Today, restaurants report that over 50 percent of their revenues come from carryout sales (Restaurants, 2003).

Despite the economic downturn in 2001 due to September 11th, the restaurant industry recently began to pick up momentum. In Western Europe, the fast food part of the restaurant industry has seen growth as well (Restaurants, 2003).

One trend