Between Krispy Kreme and Dunkin Donuts, I would bet on DD to win. It's not really a matter of taste - although I prefer Dunkin Donuts to the glazed goodness of Krispy Kremes that so many people find irresistable (nothing beats DD's chocoalte frosted for for me). But more importantly, DD has successfully re-branded themselves away from being just a "donut and coffee shop", to a place that you can go and grab breakfast or lunch. Their expanded menu items has helped keep them out of a financial rut, but the same cannot be said for Krispy Kreme.

Krispy Kreme has been stagnating financially for the last 3 years. Finally, it looks like they are going to try and do something about this - by introducing soft serve ice creme into some of it's stores. I think this is a dubious idea at best, and Krispy Kreme twice rejected the idea, according to The News Tribune. But somehow, the latest execs are convinced that this will help the company turn around.

In the first half of the fiscal year that began in February, Krispy Kreme sales declined 8% for that period and same-store sales, or sales at stores open at least a year, dropped 6.5% in the six months ended Aug. 3. During the company's second-quarter earnings conference call, the company laid out plans for a revival of sorts. They will begin opening smaller locations that are less expensive to build than its older "factory store" model that allowed consumers to watch the doughnuts being made.

Another key part of the plan is the company's new Kool Kreme soft serve, which will be featured with a toppings bar. The product is being tested in several stores around the country. [Source: USA Today].

So Dunkin Donuts introduces a new "healthier" DDSmart Menu featuring egg white sandwiches, and Krispy Kreme goes with fat laden soft serve ice cream.

Photo Credit: Daquella Manera and Y/ FLickr.

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