Sat 23rd Aug 2025 - Exclusive: Krispy Kreme UK begins multi-year turnaround plan as it reports £6.5m loss Exclusive – Krispy Kreme UK begins multi-year turnaround plan as it reports £6.5m loss: Krispy Kreme UK has said it has begun a multi-year turnaround plan as it reported a pre-tax loss of £6,465,000 for the year ending 31 December 2024 compared with a profit of £6,128,000 the previous year. Revenue grew 0.13% to a record £119,909,000 compared with £119,751,000 the year before. Adjusted Ebitda more than halved to £7,532,000 from £15,982,000, “due to reduced margins driven by higher cost of sales and labour costs”. This represented 6.3% of sales (2022: 13.4%). Gross margin was 49.8% (2023: 53.0%). Cost of sales grew to £60,245,000 from £56,298,000 while administrative expenses climbed to £65,513,000 from £57,367,000. At the year end, the company operated 141 stores across the UK, up from 129 in 2023. In their report accompanying the accounts, the directors stated: “The company has now commenced a multi-year turnaround plan to drive more sustainable, profitable growth, with new management reviewing the company's retail and Delivered Fresh Daily locations, with a view to being where the customer is and ensuring the company is set up for the future. 2024 continued to see significant macroeconomic challenges in the UK. The cost-of-living crises continued to impact consumer disposable income, resulting in less footfall in retail and reduced spending on discretionary items. High food and ingredient inflation also drove higher input costs and supply chain challenges. These factors, combined with the company's investment in growing its retail footprint, has seen an increase in costs that has not been offset sufficiently by sales. Actions taken during the year include locking in contracts for input price stability, improving employee pay and working to reduce cost in overheads. This has been paired with a continuous focus on driving doughnut innovation to deliver a strong brand experience for the customer now and in the long term. During 2024, an increased focus on flavour innovation has helped to attract new customers and drive engagement with the Krispy Kreme brand. Marking the company's biggest range update in more than a decade, eight new doughnuts were introduced to the core range, including the popular cinnamon swirl. Partnerships with brands such as Kit Kat and Aero, alongside IP collaborations with Friends, Barbie and Grinch to launch limited-time products also performed strongly with customers. 2024 also saw the company open its flagship Oxford Street theatre store, an immersive retail space bringing Krispy Kreme's Hot Light experience to Central London, allowing customers to watch 6,600 Original Glazed doughnuts be made every day. The company also developed its rewards platform, bringing on-board a new CRM partner to improve the user experience, enable more personalised customer communications, and drive more loyal customers. These upgrades resulted in increased engagement and incremental revenue.” The company said it will continue to be supported by its US parent company. No dividend was paid (2023: nil) while staff levels were up slightly to 1,773 from 1,743. In March, Krispy Kreme said it was seeking master franchising partnerships across seven international operations, including the UK, to better focus its efforts on US expansion. The company said it recognised the “best way to grow” in some overseas markets was via “local-scale master-franchise” partnerships and was evaluating refranchising some of its businesses overseas. In October last year, Krispy Kreme UK introduced a new management team, including hiring Guy Meakin, formerly UK shops and franchise director at Pret A Manger, as its new president. Krispy Kreme UK features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and features 1,151 companies. Krispy Kreme UK’s turnover of £119,909,000 is the 107th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.