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Picture of motor59
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It would appear that cooler heads (at Krispy Kreme Corporate) have seen the negative backlash that resulted from this decision, and have rethought their initial response.
quote:

How much would a Krispy Kreme fan pay for a dozen doughnuts?

Minnesota college student Jayson Gonzalez discovered the answer earlier this year when he stumbled across an unexpected business opportunity: Minnesota residents who desperately wanted Krispy Kreme doughnuts despite the fact that there weren't any stores nearby. So desperate, in fact, that they were willing to pay about double the retail price for a box of a dozen.

So, Gonzalez started making weekly drives to Clive, Iowa, about four hours each way, in order to satisfy the need. He would buy around a hundred boxes (of a dozen doughnuts each) to resell on the way back.

You would think Krispy Kreme would applaud Gonzalez's spirit of entrepreneurship, not to mention the fact that they were selling an additional 1,200 donuts every week to customers outside its normal area of operation.

You would think.

Instead, Krispy Kreme contacted Gonzalez and told him to shut down.

What followed was a major lesson in entrepreneurship, listening to your customers, and emotional intelligence.

The backstory
The story began earlier this year. Gonzalez, a 21-year-old who studies accounting at Metropolitan State University, traveled with the youth soccer team he was coaching for a tournament. When he saw a Krispy Kreme, he posted a message on Facebook asking if anyone wanted him to bring them back some doughnuts.

"I kid you not, a couple days later, I had over 300 replies," Gonzalez told Deanna Weniger, a reporter with the Twin Cities Pioneer Press, who originally reported the story.

And so, a great business was born. Weniger shared details of the operation:

Gonzales takes orders via a Facebook page, "Krispy Kreme Run Minnesota." He emails the manager at the Krispy Kreme in Clive, Iowa, to make sure the large order of about 100 boxes will be ready when he arrives. Then, he wakes up before 2 a.m., which is when he begins the four-hour drive (about 250 miles) to Clive, where he loads up his Ford Focus with the 100 boxes.

On the return drive to the Twin Cities, Gonzalez makes eight stops, mostly in Target parking lots. After parking his car, he puts a Krispy Kreme bag on the roof as a signal to customers. Cars pull up within minutes.

Gonzalez, who became known as "the doughnut guy," sells the doughnuts for between $17 to $20 per box. (A dozen "original glazed" doughnuts currently retails for around $7.99, according to independent website Real Menu Prices.) That makes for a profit of about $9 to $12 a box, minus gasoline costs, car wear and tear, and of course, labor.

With all of this positive press, it seemed like a no-brainer for Krispy Kreme. Help publicize the story, and support a young man who loves the brand.

That's why it was so surprising when Krispy Kreme did the opposite. Less than a week after the Pioneer Press ran the original story, Gonzalez told Weniger that "one of the big managers" called him, and corporate said he should "cease and desist."

A brilliant response
Gonzalez could have let his emotions get the best of him. He could have become frustrated and said: "Man, forget Krispy Kreme. Those guys are jerks." Or he could have tried to fight them legally.

Instead, Gonzalez responded with remarkable emotional intelligence.

"It was never my intent to make Krispy Kreme seem like the bad person, or the bad company, in this scenario," Gonzalez said in a video posted to Facebook. "It is kind of upsetting that I had to stop, but it is what it is."

"One opportunity closes, another one will open," he continued. "But we'll kind of just see where we go and what happens and, who knows? Something amazing could happen from it.... But whatever happens, I'm always willing to embrace it. Always looking for the positive."

Wow. Talk about refreshing. (Did I mention Gonzalez is only 21 years old?)

News outlets around the country picked up the story: The big, bad corporation crushing the entrepreneurial dreams of a single college kid.

Backlash ensued.

And then, Krispy Kreme realized it had made a huge mistake.

"We have become aware of Jayson's situation, which involves one of our well-intended locations, and are looking into this," the company told Weniger in a statement on Sunday. "We appreciate Jayson's passion for Krispy Kreme and his entrepreneurial spirit as he pursues his education."

This response shows emotional intelligence on Krispy Kreme's part, too. And a lot of PR savvy. It's unclear who exactly called Gonzalez...but the company managed to not throw them under the bus (by referring to them as "well-intended"), and praise Gonzalez's efforts at the same time.

And then, yesterday afternoon, Gonzalez published the following update to Facebook:

"I have received a call directly from Krispy Kreme, and we are working together! A positive solution is taking place as we want to make sure we do this the right way, and I will have more details soon.... Stay tuned!!!!"

In an additional update, Gonzalez said that he would be continuing the business as an independent operator, with the support of Krispy Kreme. Gonzalez has also started a GoFundMe page to help finance the purchase of a bigger vehicle--to transport more doughnuts, of course.

Looks like a happy ending after all.

So, the next time something doesn't go your way, resist the urge to dwell on the negative or to give up hope. Instead, show a little emotional intelligence: Stay focused on what you can control, and find a way to channel those feelings into something positive.

Because, like "the doughnut guy" says:

Who knows? Something amazing could happen.

UPDATE: Krispy Kreme announced today that they are donating 500 dozen doughnuts to Jayson in support of his business.

Here's the full statement, via Krispy Kreme's official Twitter account:

"Today, we reached out to Jayson to express our appreciation for his love of Krispy Kreme and admiration for his entrepreneurial spirit. We are going to help him achieve his goals, which include being debt-free when he graduates in 2021, in part by selling Krispy Kreme Doughnuts. Our intent regarding the temporary stoppage of him selling doughnuts was to ensure product quality and regulatory compliance to protect both Jayson and Krispy Kreme. Our main concern is that the doughnuts Jayson sells maintain our high quality product standards, given the distance and manner in which he is transporting and distributing them. So, we are happy to work with Jayson as an independent operator to ensure consistent delivery of our high-quality doughnuts to our fans in Minnesota. We wish Jayson great success and we're thrilled to help him achieve it by donating 500 dozen doughnuts when he re-starts his business."



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suaviter in modo, fortiter in re
 
Posts: 3160 | Location: Exit 7 NJ | Registered: March 21, 2005Reply With QuoteReport This Post
Back, and
to the left
Picture of 83v45magna
posted Hide Post
quote:
Originally posted by kramden:
quote:
Originally posted by BigSwede:
quote:
Originally posted by shovelhead:
There were guys in the 70's "bootlegging" Coors to Michigan and on their return trip to Colorado bootlegging Stroh's.

One of those guys bought a new Monte Carlo every year from the Chevy dealer I worked at, paid in cash. That was his work.


Wow, I remember Coors being a highly sought after item but had no idea Strohs(Detroit pisswater) was also in return.
In 1968 Coors was not sold east of the Mississippi River. At that time I was in the army at Ft. Huachucha ,AZ . Anyone that was from any state east of the Miss. considered Coors liquid gold. And when we were going home guys were throwing clothes and other items away so they could stuff their duffle bags with Coors beer. It was nuts.

My best friends' dad was assigned as XO of a KC135 squadron in UP Michigan after he got back from Vietnam. He said they used to haul 'quite a lot' of Coors back east whenever they got the chance. He also said they knew, to the second, how long to leave a can behind the fuselage insulation to make it a perfect temp 'if you should want' to have a cool sip.
 
Posts: 7392 | Location: Dallas | Registered: August 04, 2011Reply With QuoteReport This Post
Coin Sniper
Picture of Rightwire
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My Uncle lived out in Denver but was born and raised here. Every time they would come back to Michigan they would load the truck up with Coors. On the way back they would load up with Vernors ginger ale.




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Posts: 38205 | Location: Above the snow line in Michigan | Registered: May 21, 2004Reply With QuoteReport This Post
Thank you
Very little
Picture of HRK
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I don't know of any nationally franchised company with a trademarked logo and patiented product/process that isn't going to protect it's rights.

While it seems petty for KK to address this, not doing so could open up a can of worms for them legally down the road, from others finding ways to sell products under their name without license, or fake products.

Its protecting the assets and rights of the company as well as consumer interests.

None of us would like buying a product from someone to only find out later it wasn't the real deal, or it had some substance in it that hurt end users and ended up getting an innocent company sued by an aggressive attorney for millions for failing to protect the consumer...

Imagine he'd have been turned down if he propositioned them to do this, and rightfully so.
 
Posts: 24238 | Location: Gunshine State | Registered: November 07, 2008Reply With QuoteReport This Post
Member
Picture of bigdeal
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Simply amazing to me these big companies totally screw the pooch at the onset of incidents like this, and then have to run damage control in overdrive trying to dig out. You'd think everyone would learn from the failures of a few, but I guess not.


-----------------------------
Guns are awesome because they shoot solid lead freedom. Every man should have several guns. And several dogs, because a man with a cat is a woman. Kurt Schlichter
 
Posts: 33845 | Location: Orlando, FL | Registered: April 30, 2006Reply With QuoteReport This Post
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