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Whilst it has been noted that the doughnut industry is generally in decline, Krispy Kreme may wish to try and grow the category again, or at least stem the decline and gain greater market share of the smaller market. With other chains such as Dunkin Doughnuts, Winchell's and LaMar's focusing on coffee and other baked products, Krispy Kreme may be able to steal a large amount of market share from them.
This is, however, an expensive option in that mass media campaigns cost money. Further, it would potentially mean having to undertake wider retail placement which the company cannot afford in the wake of it's multitude of law cases from disenchanted franchisees...
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