Krispy Kreme To Introduce Soft Serve Ice Cream In Stores

Winston-Salem, NC (AHN) - To make up for slack sales caused by health concerns that its glazed doughnuts are not beneficial to one's well-being, Krispy Kreme will launch its soft serve ice cream.

Aside from the addition to its menu, Krispy Kreme will also open smaller stores and more outlets overseas to help it recover financially. For the second quarter of 2008, the doughnut shop's net loss climbed to $1.9 billion, up from a net loss of $27 million the previous year.

To go together with the soft serve ice cream will be toppings bar. The twin concepts are being pilot tested in several U.S. stores.

Doubts have been expressed by food research experts if the new offering will be sufficient to shore up Krispy Kreme's sagging sales. Bob Goldin, executive vice president of Technomic, a food industry research company, explained that while the doughnut companies is attempting to reposition itself as a treat concept that offers diners desserts and indulgences, it is up against the trend towards healthy eating.

In contrast, its competitors are even offering healthier choices such as egg-white sandwiches and whole-grain pastries. Harry Balzer, vice president for consumer research of NDP Group, conceded many Americans will still desire once in a while to indulge their sweet tooth, but restaurant chains must be responsive towards the healthy eating trend if they want to stay competitive.