Dive Brief:

• McDonald’s is expanding its Krispy Kreme market test to roughly 160 locations in Louisville and Lexington, Kentucky, the companies announced Monday. The new pilot locations will begin selling doughnuts on March 21. 
• Diners will be able to purchase three Krispy Kreme doughnut varieties via McDonald’s delivery and on the McDonald’s app, in addition to drive-thru and in-store service. 
• McDonald’s began selling Krispy Kreme doughnuts at nine restaurants in the Louisville, Kentucky, market in late October. 

Dive Insight:

By scaling this brand tie-up to around 150 more locations, Krispy Kreme can glean a better sense of diner demand for its products and McDonald’s can gauge how this offering impacts its operations, according to the press release. The doughnuts will only be available for a limited time, as initially announced in October. The expansion will include Krispy Kreme’s original glazed doughnut, chocolate iced with sprinkles, and chocolate iced Kreme filled doughnut.

So far, the doughnut chain’s test has provided valuable insight into the time, quality and execution necessary to meet the needs of QSR customers, Krispy Kreme CEO Mike Tattersfield said during the chain’s Q4 2022 earnings call.  

The McDonald’s partnership makes use of Krispy Kreme’s hub-and-spoke expansion model, wherein the chain’s production centers deliver doughnuts to nearby retailers and convenience stores. Last year, Krispy Kreme announced it would launch delivery-only domestic units. The addition of McDelivery to its QSR pilot will bolster this off-premise push.