I don't understand how Krispy Kreme is in such trouble. They have a far superior product to Dunkin Donuts, IMO, yet DD has a store ever 3 feet it seems, and I have no Krispy Kreme anywhere near me.
I think KK made the mistake that Boston Market did several years ago in expanding so quickly. Like Boston Market, KK suffers from widespread supermarkets that have their own bakeries. Where I am, most supermarkets put out fresher, better, bigger and cheaper doughnuts than the national chain stores, and the KK stores wnt away. The only KKdoughnuts I see now are in some of the convenience stores.
I think Dunkin Donuts survives because they market their coffee well and diversified the menu.