“ If people don’t want to visit a donut store, they don’t have to ”

Krispy Kreme, who announced plans this week to give a free donut to anyone who gets a free COVID-19 shot, is defending himself against some of the naysayers who believe the freebie could have unintended consequences.

The donut chain’s well-intentioned (and literally sweet) push has sparked backlashes on social media, with everyone from doctors to comedians, pointing out that obesity – which is rampant in the United States – is also a problem. major risk category for the coronavirus. Plus, there is a history of big brands offering generous specials that end up being costly mistakes.

However, CEO Mike Tattersfield defended his company’s intentions in an interview with Yahoo Finance Live on Friday. “We are a candy company, [and] if people don’t want to visit a donut shop, they don’t have to. “

Dismissing the growing criticism, Tattersfield added that if “people who want to be vaccinated, if they decide to combine a Krispy Kreme pickup [for] a donut, they can. This is how we see it… generosity.

Last March, Krispy Kreme launched a similar initiative in response to the pandemic. He allowed all healthcare workers to receive a dozen of his original glazed donut free of charge. Tattersfield says the initiatives have been well received by the community.

‘We take the tab’

“I drop off a lot of donuts in the health care system. They are very grateful, given the days they have to work… people are always looking for a little snack break. It’s okay,” he says.

These initiatives are just a few of the many initiatives offered by Krispy Kreme, which begs the question of whether the company gives more than it accepts.

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However, Tattersfield has insisted that the giveaways are drawing more customers to its stores than expected. In 2020, Krispy Kreme’s same-store sales surged amid the pandemic: although lockdowns put the brakes on foot traffic, those losses were mostly offset by hungry consumers looking for bargains. That momentum has continued this year, the CEO said.

“Last year we gave 30 million donuts… we didn’t come in the year thinking we’re going to make 30 million donuts from freebies.”

Nonetheless, “our franchisees have been excellent partners with us and have also benefited along the way,” added Mr Tattersfield. As to who takes the tab to reconcile that, the head office does.

“We’ve always done fundraising and had some kind of community donation. The majority of the United States is a corporate-owned system, so we’re taking note,” he explained.

Meanwhile, Tattersfield is confident that these very generous incentives won’t spoil the company’s bottom line, as it has for a few other brands that have found themselves on the wrong side of giveaways. Krispy Kreme has no insurance for too many gifts, he said.

And the business may be on its way to an even bigger sales year if customers are drawn to the prospect of a free donut every day of the year.

According to Tattersfiled’s logic, some healthcare workers will come in and “order five dozen donuts, or even sometimes 10 dozen donuts.” Yet ultimately they will “start paying them themselves”.

None of the donut chain customers are trying to “beat the system or something,” the CEO said. “We’re just focusing on giving. It’s Krispy Kreme.”

Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or send him an email at [email protected].

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