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The popularity of the product not only caused KKD to become a factory-like retail store but also led to the franchise of more stores to mostly franchisees. It was later purchased by Beatrice Foods, in 1973, who expanded it to 100 locations. Beatrice Foods also “introduced other products such as soups, sandwiches, and cut costs by changing the appearance of stores and substituting cheaper ingredients”. The business however did not flourish as expected, and was sold to a group of franchisees led by Joseph McAleer in 1982 for $24 million. McAller led the KKD back to using the original doughnut formula and the company’s traditional logo; in addition McAller introduce the “HOT DOUGHNUTS NOW” sign, which successfully told customers when fresh doughnuts were coming off the line...
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