Krispy Kreme Heats Up OC Doughnut Rivalry
Marketing & Media
by Jennifer Bellantonio
The Krispy Kreme craze creeps further into Orange County, with the doughnut chain opening its third location here in Mission Viejo last week.
The first customer staked his spot in front of the store the day before it opened and slept in a tent so he could be first in line.
He wasn’t alone.
Before the sun was up and the doors parted at 5:30 a.m., about 100 customers were waiting behind him to get their Hot Original Glazed doughnut, the chain’s signature offering. The store, which flashes giant searchlights at night to attract fans, sold almost 51,000 doughnuts its first day of operation.
Winston-Salem, N.C.-based Krispy Kreme Doughnuts Inc. has 18 stores in Southern California, which also is home to Santa Ana-based Winchell’s Donut House LP.
Winchell’s is making its own push in the area as the two jockey for doughnut business.
Krispy Kreme plans to roll out 32 new stores nationally by this year.
Meanwhile, Winchell’s, which has 200 stores in the Western U.S.,down from a one-time high of about 1,000 two decades ago,opened 15 franchises last year.
So far, the OC doughnut chain has two stores that are opposite Krispy Kreme,one in La Habra and another in Riverside.
Winchell President Bob Zanolli has said he isn’t worried about the competition, in past interviews with the Business Journal.
“We dare people to compare Krispy Kreme doughnuts to our doughnuts,” Zanolli said. “We’ve got a bigger doughnut. We think it tastes better.”
In fact, he said he’s happy that Krispy Kreme has “clearly increased doughnut awareness in the community and country.”
Winchell’s has been revamping its stores and trying to perk up its image in a bid to reverse years of declining sales. Three years ago, the company launched a new “Warm ‘n Fresh” marketing campaign, which offers customers a fresh handmade doughnut (Krispy Kreme’s are made by machines) daily between 6 a.m. and 11 a.m.
The company continues to push the theme and has spent about $30,000 to $40,000 per store to renovate each one with a new, contemporary look. And Winchell’s has come up with a new logo, menu boards and outdoor signs.
Ducks Season
The Mighty Ducks of Anaheim are making a marketing push with the hopes of getting back into the hearts of fans.
“You’ve got to reach out and tell people that you care about them,” said Douglas Moss, the Ducks senior vice president of business operations. “You have a lot of disenchanted fans and I don’t know what’s happened.”
One way they’re doing it: lowering prices on some season seats, and giving suite holders free extra tickets in the luxury boxes.
The team also is having a party for season-ticket holders for its first game and road opener, which is Oct. 10 in St. Louis.
The Ducks plan to invite season-ticket holders to Anaheim’s Arrowhead Pond in the late afternoon and lower the Diamond Vision giant screen, which was installed last year. The fans can watch the game, have free refreshments and vie for product giveaways.
Medical Marveling
Marina del Rey-based Zamboo just kicked off a new advertising campaign for UCI Medical Center.
The agency, which has worked with UCI for two years, put together work that promotes the medical center’s achievements and medical breakthroughs, such as its robotic-assisted surgery system. The medical center is the only one in OC with such a system, according to the agency.
The campaign consists of television and radio spots, and print ads running mainly in OC. It began in May and will run through the end of the year.
Billings were undisclosed.
Bits and Pieces:
No surprise here: The four Hyundai Motor America Dealer Advertising Associations have hired The Richards Group to handle their $200 million advertising account. The account officially leaves Bates USA West in Irvine on Sept. 30, according to a source familiar with the office. The future of the office still is undetermined. The OC shop, which has undergone some layoffs, is trying to go after new business with hopes of keeping its doors open, the source said.
