December 15, 2004     Saratoga, California Since 1955
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There's a hole in Krispy Kreme doughnuts' plan for 2004 opening
By Kaustuv Basu
The doughnuts have been delayed.

The hot, glazed doughnuts that Saratogans were looking forward to will now take a few more months to prepare. A Krispy Kreme outlet at the corner of Prospect Road and Lawrence Expressway scheduled to open by the end of the year will not start operating until sometime in February.

Diane Zimmerman, real estate manager for the Krispy Kreme Doughnut Corporation, said that inclement weather had delayed construction. "If it doesn't rain, the building should be ready by early 2005," she said.

But Becky Shell, assistant marketing manager for Krispy Kreme, said that the store was always scheduled to open in early 2005. "As in any typical construction situation, there are things that happen that are out of our control. And things such as weather can always push the opening. However, our crew is working very had to ensure that the store is open as early as possible," said Shell.

An older building on the site which housed a rug store has been demolished. A Wherehouse record store was located at the same site before the rug store moved in. The lot has been fenced off now and a few construction trailers can be seen on the site.

Zimmerman said that the current downturn in the company's fortunes nationally would not affect the opening of the Saratoga store. The company reported its third straight quarterly earnings drop last month. Its share prices have fallen nearly 70 percent since the beginning of the year. The Securities and Exchange Commission is also investigating the company's business practices.

The Saratoga Planning Commission had approved an application in June for Krispy Kreme to set up a drive-through store at the site.

Zimmerman had said then that the company was looking at a scheduled opening around the holiday season.

The plans for the new building show a floor area of 4,090 square feet. The existing parking area will be renovated to improve the traffic circulation pattern in the shopping center. The company has also promised to repaint the entire shopping complex once the store opens so that the new structure blends in with the older buildings.

The doughnut shop will provide both walk-in and drive-through service and will be open 24 hours a day. As is the custom in other Krispy Kreme stores, customers can view the entire doughnut-making process. Beverages and other related items will also be sold at the store.

"We are having a construction event on Jan. 25. We will be inviting local schools and non-profit groups to attend and 'dig' for fundraising prizes. Each group will walk away with at least $250 with a top prize of $2,000 in fundraising prizes," said Shell.

Zimmerman had indicated at the time of the planning commission meeting that 10 percent of the first-day sales at the Saratoga outlet would go to a local nonprofit, with a preference for an organization related to children. The company often helps local schools and nonprofits with fundraising by giving them doughnuts at half-price and letting the organizations sell them at regular price.

The two closest Krispy Kreme stores in the area are located in Mountain View and Union City. Some local supermarkets also carry Krispy Kreme products.

The company has recently started test marketing mini-doughnuts in Winston-Salem, N.C., where its headquarters are located.

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