McDonald’s is entering the doughnut business — at least temporarily.
Starting Oct. 26, McDonald’s will sell Krispy Kreme doughnuts at nine locations in Louisville, Kentucky, serving up three of the breakfast chain’s most popular donuts: classic glazed, raspberry-filled, and chocolate sprinkle.
“McDonald’s is always looking for ways to give our fans more of what they crave, and we often conduct tests to inform future menu decisions,” the fast food chain said in a press release. “This small-scale test will help us understand how offering new bakery items like Krispy Kreme could impact operations in our restaurants.”
McDonald’s is leaving the dough-frying to the experts at Krispy Kreme, who’ll deliver the doughnuts daily. It’s a familiar arrangement for the breakfast chain, which uses a “hub and spoke” model to generate additional revenue. Hubs, either factories or Krispy Kreme locations, send their doughnuts to third-party locations such as convenience and grocery stores. Krispy Kreme’s stock rose sharply following the announcement.
We’re only one experiment away from them selling Luther burgers 💀 https://t.co/aXBrJ7PN1w— lauren. (@renlaux) October 19, 2022
The move also makes sense for McDonald’s, which has seen a shift in customer habits to value items in the face of inflation. A single glazed donut costs just $1 at Krispy Kreme, making it a low-cost breakfast item or snack that could appeal to customers squeezed by price increases.
This isn’t the first time McDonald’s has collaborated with an outsider to boost its sales. On Oct. 3, the fast food giant debuted its limited-edition “adult Happy Meal,” which it launched with the help of casual-clothing maker Cactus Plant Flea Market. The Happy Meals have been such a hit that employees say they’re overwhelmed by the number of orders.