Krispy Kreme UK has taken up a 10-year lease on a 5,392 sq ft production unit on Heywood, Manchester, which will create up to 40 jobs and house a manufacturing line and processing kitchen with the ability to produce 3,000 doughnuts per hour.
Chief financial officer Rob Hunt said: “We looked at a number of industrial parks across the North West but Heywood proved to be the perfect location for us, not only because of its fantastic transport links but also because it is brand new and therefore, highly suitable for food grade use."
Currently, Krispy Kreme doughnuts for the UK market are made onsite at ‘Hotlight’ retail stores, which also service Krispy Kreme’s smaller outlets and fresh shops.
The new unit at Heywood will supplement existing distribution, providing the capacity for KK to expand further north, said the firm. "Unlike other Hotlight stores, it will not have a retail unit."
Firm aims to double store numbers in five years
Krispy Kreme UK has 42 branded UK outlets, said Hunt: “This move is the next step for our expansion plans to double the number of stores in the next five years.”
Within the UK, Krispy Kreme provides a range of glazed doughnuts from Krispy Kreme branded stores plus instore cabinets at outlets such as Tesco and Moto service stations, as well as in coffee bars and kiosks.
During a conference call earlier this month, chief executive Jim Morgan said the Krispy Kreme brand was “significantly under-penetrated with substantial room for growth” worldwide.
Founded in 1937, Krispy Kreme opened its first UK store inside Harrods, London, in 2003, and now has 640 outlets open worldwide, 564 of which are franchises.