Wal-Mart To Offer Second Doughnut Shop Option

May 13, 2004

By George Anderson

They won’t be sold in the same stores, but Wal-Mart shoppers may soon have the choice of visiting a location based on the doughnut brand they prefer.

A Wall Street Journal report says Dunkin’ Donuts has agreed to open 10 of its shops in Wal-Mart stores in the coming months with plans to grow well beyond that if the company
achieves its expected success.

The chain’s chief executive, Jon Luther, told the Journal that he could see having more than 100 shops in Wal-Mart stores if all goes according to plan.

The deal with Dunkin’ Donuts follows a similar deal Wal-Mart made with Krispy Kreme. In addition to shop openings, Wal-Mart sells Krispy Kreme doughnuts in about 500 store locations.

Wal-Mart says its deal with Dunkin’ Donuts will provide its shoppers with more choices. In addition to the two doughnut chains, Wal-Mart also leases space in other stores to
Blimpie’s and McDonald’s.

Moderator’s Comment: Which food service option do you believe holds the greatest potential in Wal-Mart: Blimpie’s,
Dunkin’ Donuts, Krispy Kreme or McDonald’s? Why?

Our initial thought was McDonald’s has the greatest potential. Evidently, Wal-Mart thought so at one point also since it attempted to start up its own burger
operation in place of McD’s in some stores.

Now, however, its focus appears to be on spreading the choices (and wealth) around. This suggests to us that perhaps Wal-Mart and McD’s do not see sure-fire
winners with locations in every store.

George Anderson – Moderator

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