Business

Why the Krispy Kreme McDonald’s Breakup Really Happened

When two major food brands partner up, expectations are high. In 2022, Krispy Kreme and McDonald’s announced a surprising collaboration. McDonald’s, known for its burgers and fries, started testing Krispy Kreme donuts in select locations. The partnership sparked excitement. After all, who wouldn’t want to grab a fresh Krispy Kreme donut with their McDonald’s coffee?

But just as things started to gain momentum, the two giants called it quits. The Krispy Kreme McDonald’s breakup left many wondering what went wrong.

In this article, we’ll take a close look at why Krispy Kreme and McDonald’s ended their partnership, what it means for both brands, and how it might affect the future of fast food.

The Start of a Sweet Collaboration

In October 2022, McDonald’s began testing Krispy Kreme donuts at a few restaurants in the Louisville, Kentucky area. The goal was simple: attract more morning customers and boost coffee sales.

Why It Made Sense

Krispy Kreme has a strong brand and loyal customer base, especially when it comes to fresh, glazed donuts.
McDonald’s wanted to improve its breakfast offerings and compete more effectively with chains like Dunkin’ and Starbucks.
Both brands could benefit from shared foot traffic and increased sales.

The idea seemed like a win-win. McDonald’s offered three Krispy Kreme donut varieties: the Original Glazed, Chocolate Iced with Sprinkles, and Raspberry Filled. Customers could order them all day, not just during breakfast hours.

A Test That Showed Promise

The pilot test went well, with reports showing strong customer interest. In March 2023, McDonald’s expanded the test to 160 locations across Kentucky. Social media buzz grew, with many customers sharing photos of their McDonald’s meals paired with Krispy Kreme donuts.

McDonald’s CEO Was Hopeful

McDonald’s CEO Chris Kempczinski had expressed optimism, saying they were exploring whether the brand could become a “distribution point” for Krispy Kreme products nationwide. The excitement was real.

But then came the surprise announcement in May 2024 — the Krispy Kreme McDonald’s breakup was official.

Why the Krispy Kreme McDonald’s Breakup Happened

Despite early excitement and strong test results, the partnership hit some unexpected roadblocks. Let’s break down the main reasons why this sweet deal went sour.

1. Logistical Challenges

Delivering fresh donuts every day is not as easy as it sounds. Krispy Kreme prides itself on freshness, often producing donuts just hours before they’re sold. Getting fresh donuts to hundreds of McDonald’s locations daily proved challenging.

Krispy Kreme’s supply chain wasn’t fully equipped for large-scale delivery to McDonald’s outlets.
McDonald’s wasn’t set up to handle delicate pastries like donuts, which need careful handling and storage.

As the test expanded, so did the operational complexity. The effort became more about logistics than sales.

2. Limited Menu Flexibility

McDonald’s kitchens are designed for speed and simplicity. Adding donuts into the mix complicated things:

Staff had to be trained on how to handle and display the donuts properly.
Donuts had to be stored in a way that kept them fresh, which meant added refrigeration or heating equipment.
It slowed down service during peak hours, especially breakfast.

For McDonald’s, any addition that affects speed is a risk to the brand’s core business.

3. Brand Mismatch

While both Krispy Kreme and McDonald’s serve food, their brand values and customer expectations differ.

Krispy Kreme focuses on indulgence and premium quality.
McDonald’s focuses on affordability, convenience, and value meals.

Some experts believe the brands were mismatched from the beginning. A Krispy Kreme donut costs more than a McDonald’s hash brown or breakfast sandwich. Customers looking for a quick value breakfast might skip the $2–$3 donut altogether.

What Krispy Kreme Had to Say

Krispy Kreme CEO Josh Charlesworth explained the breakup in a positive tone. In a statement, he said:

“We learned a lot from our test with McDonald’s and we’re grateful for the opportunity. However, we’ve decided to focus on other strategic partnerships and continue building our own direct-to-consumer channels.”

Krispy Kreme is already in partnerships with big names like Walmart, Target, and 7-Eleven, where the distribution model works better.

What McDonald’s Had to Say

McDonald’s, meanwhile, did not sound too disappointed. A company spokesperson said:

“We regularly test new menu items and partnerships to bring our customers more variety. Not every test becomes a nationwide launch, and that’s okay.”

This was a clear sign that while the test was successful on some fronts, it didn’t meet McDonald’s long-term goals.

Lessons Learned from the Split

The Krispy Kreme McDonald’s breakup offers some important lessons for brands and marketers alike:

1. Product Fit Matters

Even if a product is popular, it has to fit seamlessly into a partner’s system. Donuts, while beloved, may not have been the best fit for McDonald’s fast-paced kitchen.

2. Operations Can Make or Break Partnerships

Behind every product is a complex web of logistics, staffing, storage, and timing. If the backend operations aren’t smooth, customer satisfaction suffers.

3. Not Every Test Becomes a National Launch

This isn’t the first time McDonald’s has tested products that didn’t make it. From salads to snack wraps, many items have come and gone.

What’s Next for Krispy Kreme?

Krispy Kreme is moving ahead with other plans. In fact, they recently announced a major expansion through convenience stores and grocery outlets. Their aim? To make fresh donuts available at more locations without the need for full retail stores.

They’re also investing in AI-based forecasting systems to better manage inventory and improve delivery efficiency.

So while the McDonald’s door has closed, others are opening.

What’s Next for McDonald’s?

McDonald’s remains focused on its core strengths — burgers, fries, and value meals. But it hasn’t given up on improving its breakfast menu. The company is now testing new coffee blends, upgraded McMuffins, and even exploring automated coffee machines for speed and consistency.

Expect McDonald’s to keep innovating, but in ways that align better with its infrastructure.

What the Breakup Means for Customers

If you were one of the lucky customers who got to enjoy Krispy Kreme at McDonald’s, this breakup might sting a bit. But don’t worry — both brands still offer their signature products at their usual locations.

Want Krispy Kreme? You can still visit one of their retail stores or find them in supermarkets and gas stations.
Craving McDonald’s breakfast? Their Egg McMuffin, hash browns, and McCafé coffee aren’t going anywhere.

This was never about customers losing options — it was about figuring out what works best where.

Final Thoughts: A Sweet Dream That Just Didn’t Last

The Krispy Kreme McDonald’s breakup shows us that even the most promising brand collaborations come with challenges. It’s not always about popularity or customer interest — sometimes the behind-the-scenes logistics, brand alignment, and operational flow matter more.

In the end, both brands walked away with valuable lessons. And who knows? Maybe in the future, we’ll see a new version of this partnership done in a smarter, more scalable way.

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