Krispy Kreme Plans St. Petersburg, Russia Area Expansion
Franchisee to Develop 15 New Shops in Next Five Years
WINSTON-SALEM, N.C. - (BUSINESS WIRE) - Jan. 21, 2015 - Krispy Kreme (NYSE: KKD) announced today that it has extended its development agreement with LLC Doughnuts Café, to include the development of 15 new doughnut shops throughout the greater St. Petersburg area over the next five years. LLC Doughnuts Café, wholly owned and operated by Arkady Novikov, has been Krispy Kreme’s Moscow-area franchise partner since April 2012.
The planned greater St. Petersburg area shops will feature an assortment of iced, glazed, and filled doughnuts, including the brand’s signature Original Glazed® doughnut, and an array of premium coffees, espressos, teas and iced beverages. The shops are also expected to feature the Company’s iconic Hot Light™.
"We are thrilled to be bringing Krispy Kreme to the St. Petersburg area," said Mr. Novikov, Owner and Operator, LLC Doughnuts Café. "This expansion of our partnership with Krispy Kreme is a reflection of our continued commitment to growing with the brand, and to sharing its iconic products and experiences with fans throughout Russia."
"The LLC Doughnuts Café team has developed an outstanding franchise operation in Moscow, and has delivered on their commitment to providing high quality products and exceptional customer service to their guests," said Dan Beem, Krispy Kreme, President - International. "We are delighted to partner with them in making the Krispy Kreme brand even more accessible to our doughnut and coffee fans in Russia."
About LLC Doughnuts Cafe
LLC Doughnuts Cafe is a licensed franchisee of Krispy Kreme Doughnut Corporation in Moscow and St. Petersburg, Russia wholly owned and operated by Arkady Novikov. Mr. Novikov also owns and operates the Moscow based Novikov Restaurant Group. The Novikov Restaurant Group includes a variety of businesses located in Moscow, St. Petersburg and London, U.K. including more than 40 stand-alone family and fine dining restaurants plus the casual dining chains Barashka, Kish Mish, Delis Cafe and Prime Star. In addition, the Novikov Restaurant Group owns and operates the karaoke bar Krik, seafood supplier NRG, agricultural enterprise Agronom, florist chain Flower Studio 55, professional catering company Novikov Catering, luxury real estate firm Mainstreet and the balanced food project Just for You.
About Krispy Kreme
Krispy Kreme is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products, including its signature Original Glazed® doughnut. Headquartered in Winston-Salem, NC, the Company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Today, there are over 925 Krispy Kreme shops in more than 20 countries around the world. Connect with Krispy Kreme at www.krispykreme.com.
Information contained in this press release, other than historical information, should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words "believe," "may," "forecast," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive" or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to: the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our domestic small shop operating model; political, economic, currency and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients, and the price of motor fuel; our relationships with wholesale customers; our ability to protect our trademarks and trade secrets; changes in customer preferences and perceptions; risks associated with competition; risks related to the food service industry, including food safety and protection of personal information; compliance with government regulations relating to food products and franchising; increased costs or other effects of new government regulations relating to healthcare benefits; and risks associated with implementation of new technology platforms. These and other risks and uncertainties, which are described in more detail in the Company’s most recent Annual Report on Form 10-K and other reports and statements filed with the United States Securities and Exchange Commission, are difficult to predict, involve uncertainties that may materially affect actual results and may be beyond the Company’s control, and could cause actual results, performance or achievements to be materially different from those expressed or implied by any of these forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
SOURCE Krispy Kreme
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