McDonald’s and Krispy Kreme Are in Talks to Expand Partnership

Krispy Kreme announced it is in talks to expand its partnership with McDonald’s.

The two restaurant companies began testing their collaboration – McDonald’s restaurants in a few US states selling doughnuts – more than a year ago. By March, the pilot had expanded to roughly 160 restaurants across Louisville and Lexington, Kentucky. The bigger test was meant to assess customer demand and to understand how a larger-scale launch would affect restaurant operations.

McDonald’s has been also cutting back on its bakery items, like cinnamon rolls and blueberry muffins. 

The collaboration could soon be coming to all states, the companies announced Thursday. “We’ve seen that both the loose doughnuts and the pre-packed doughnuts are well received,” said Krispy Kreme CEO Josh Charlesworth.

Krispy Kreme uses a “hub and spoke” model that lets it make and distribute its treats efficiently. Production hubs, which are either stores or doughnut factories, send off freshly made doughnuts every day to retail locations such as grocery stores and gas stations.