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McDonald’s will sell Krispy Kreme donuts in select restaurants later this month for the first time.
Starting Oct. 26, the fast-food giant will sell Krispy Kreme donuts at nine locations in the Louisville, Kentucky area as part of a test. McDonald̵[ads1]7;s said the test will help it learn more about how the partnership with Krispy Kreme will affect its operations.
McDonald’s customers will be able to order the original glazed chocolate iced with sprinkles and raspberry-filled doughnuts, either individually or in packs of six. Participating McDonald’s locations will sell the donuts throughout the day, but the treats will not be available for delivery.
Krispy Kreme will deliver fresh donuts daily to McDonald’s restaurants, according to McDonald’s. The donut chain uses a “hub and spoke” model that allows it to make and distribute its treats efficiently. Production hubs, which are either stores or donut factories, ship fresh donuts each day to retail locations such as grocery stores and gas stations.
The test comes as consumers have cut back on restaurant visits as high inflation squeezes budgets. To bring customers back to restaurants, chains have experimented with new menu items and promotions.
In the first half of the year, McDonald’s said lower-income consumers in the U.S. spent less at its restaurants. Krispy Kreme CEO Mike Tattersfield, on the other hand, has said his chain has strong pricing power because customers are willing to spend on affordable treats like fresh donuts.
In the second quarter, Krispy Kreme reported revenue growth of 7.5% for its US and Canada division. But it trimmed its full-year revenue and earnings forecast, citing a stronger dollar and weaker performance from U.S. manufacturing hubs that do not supply to other locations.
It is not the first time that fast food chains have relied on donuts to attract customers. In 2020, KFC launched a “Fried Chicken and Donut” sandwich nationwide after tests of the item caught attention on social media.