Dive Brief:
- Krispy Kreme signed a franchise development agreement with Original Entrepreneurs to open 33 Krispy Kreme locations in the New York metro area over the next five years, the doughnut chain said in a Tuesday press release.
- The long-time Krispy Kreme franchisee currently operates 12 shops. The new agreement will add units in New York City and its suburbs, including Long Island and New Jersey.
- This deal comes months after Krispy Kreme closed a $90 million joint venture agreement with WKS Restaurant Group, which included the operator taking ownership of 23 company-operated stores in California and Hawaii. WKS plans to expand Krispy Kreme’s presence in the Western U.S.
Dive Insight:
These two latest deals are part of Krispy Kreme’s ongoing turnaround strategy that includes shifting to an asset-light model and working towards profitable U.S. growth.
The chain sold its Japanese assets for $65 million earlier this year. The WKS and Japan deals helped reduce net debt, CEO Josh Charlesworth said during an August earnings call.
The partnership with Original Entrepreneurs will allow the chain to expand through an operator that has “deep expertise building and operating Krispy Kreme shops in a competitive market,” Charlesworth said in the press release.
Original Entrepreneurs opened its first Krispy Kreme Hot Light Theater location in 2017 and has since developed units across New Jersey and New York, according to the press release. The operator has locations in New York state as well as Jersey City, Springfield, East Rutherford, Paramus and Lakewood, New Jersey.
“With a focus on strategic expansion, customer service and convenient access to fresh Krispy Kreme doughnuts, Original Entrepreneurs continues to grow its presence across the region,” the press release said.
Refranchising and development have increased the proportion of sales generated by franchised operations. In 2025, franchisees accounted for 25% of systemwide sales. As of August, that number jumped to 42% of systemwide sales, Charlesworth said during the earnings call. The chain’s goal is to have franchisees contribute half of systemwide sales by early next year.
In the U.S., the chain has also been focusing on profitable growth, including within its shops, digital channels and fresh delivery partners, Charlesworth said. Last year, the company expanded its core menu, offering 16 full-sized doughnuts every day instead of 10. The company also has five seasonal doughnut collections annually and a steady cadence of limited-time offers, he said.
