Learn English Lesson #19 (Read + Speak + Study Questions)
Krispy Kreme donut chain profitable again Would you like $4.5 million with that donut? Krispy Kreme is now in the black (profitable) after cutting debt, closing under performing locations and reducing expenses. The restaurant chain is now poised to grow its store base in 2010 as it aims to increase sales. The company is using a hub-and-spoke distribution strategy that has smaller stores receiving pre-cooked donuts. The donuts then receive the sugar coating at the store. This strategy allows small stores to have the same product as large locations. The company is also experimenting with ideas such as ice cream, bagels and muffins to boost sales. Shareholders Tim and Linda McCorbin are excited about the results. The McCorbins are proud owners of a Krispy Kreme franchise. "We've had to eat 72 donuts each day to keep the company profitable. We also drank 14 soft drinks each day for fun," said Mr. McCorbin. "We had open heart surgery to remove the plaque from our arteries. But we had the surgery together so it was a romantic moment for us," noted Linda. "The government paid for our surgery under the Cash for Cuts Surgery Program at the teaching hospital. They botched Tim's surgery so he suffered some internal bleeding and infection. However, we were able to resuscitate him once we removed the scalpel from his left heart valves. The couple has reduced their intake of donuts by 10% but they have started smoking cigarettes to spend more time together feeding birds. Questions: What happened to Krispy Kreme's business recently? Describe what makes Tim and Linda's relationship special.