Krispy Kreme, who announced plans this week to give a free donut to everyone who gets a free dose of COVID-19, is defending himself from some of the opponents who think the toast could have unintended consequences.
The well-intentioned (and literally sweet) incentive of the donut chain has generated some negative reaction on social media, with everyone from doctors to comedians, pointing out that obesity – which is rampant in the United States – is also a major risk category for the coronavirus. In addition, there is a history of major brands offering generous special offers that turn out to be costly mistakes.
Krispy Kreme is offering free donuts to everyone who has been vaccinated. Which is great news for anyone who has received the injection but still wants to die.
– Stephen Colbert (@StephenAtHome) March 23, 2021
However, CEO Mike Tattersfield defended his company’s intentions in an interview with Yahoo Finance Live on Friday. “We are a candy company, [and] if people don’t want to visit a donut shop, they don’t have to. “
Countering growing criticism, Tattersfield added that if “people who want to get a vaccine, if they decide to combine a Krispy Kreme pickup [for] a donut, they can. That’s how we see … generosity. “
Last March, Krispy Kreme launched a similar initiative in response to the pandemic. It allowed all health professionals to receive a dozen of their original glazed donuts free of charge. Tattersfield says the initiatives were well received by the community.
‘We paid the bill’
“I leave a lot of donuts to the healthcare system. They are very grateful, given the days they have to work … people are always looking for a sweet little break. It’s okay, ”he said.
These initiatives are just a few of the many offered by Krispy Kreme, raising the question of whether the company is giving more than receiving.
However, Tattersfield insisted that the gifts are attracting more customers than expected for his stores. In 2020, same-store sales in Krispy Kreme skyrocketed in the midst of the pandemic: although roadblocks have restricted pedestrian traffic, these losses have been mostly offset by hungry and bargain-hungry consumers. That momentum has continued this year, said the CEO.
“Last year, we distributed 30 million donuts. We didn’t arrive in the year thinking that we would make 30 million donuts.”
However, “our franchisees have been great partners with us and have also benefited along the way,” added Tattersfield. As for who pays the bill to reconcile this – corporate headquarters does.
“We have always done fundraising and given some kind of retribution to the community. Most of the United States is its own system, so we pay the bill, ”he explained.
Meanwhile, Tattersfield is confident that these very generous incentives will not hurt the company’s bottom line, as has happened with some other brands that have seen the wrong side of gifts. Krispy Kreme does not have insurance for many gifts, he said.
And the company may be on its way to an even bigger year in sales if customers are attracted by the prospect of a free donut every day of the year.
According to Tattersfiled’s logic, some health professionals arrive and “order five dozen donuts, or ten dozen donuts sometimes. However, eventually, they” will start paying for themselves “.
None of the donut chain’s customers are trying to “beat the system or something,” said the CEO. “We just focused on really giving generosity. This is Krispy Kreme.”
Brooke DiPalma is a producer and reporter at Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or send an email to [email protected].
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