Friday, August 18, 2006

Krispy Kreme Closes First West Coast Store

And not a arteriosclerotic moment too soon:
Whatever the reasons, James Glass, an analyst with CIBC World Markets in Boston, put it bluntly: "People just won't line up for doughnuts forever and ever."

The store that started the local craze gradually became unprofitable, with sales falling to about a third of their original level, one employee said.

Krispy Kreme was in some sense a victim of its own success. The quick proliferation of stores — seemingly opening by the dozen — made it harder for individual locations to get by. The La Habra store closed as part of a retrenchment in the last year that has left Great Circle with 17 Krispy Kremes, down from a peak of 31.

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