‘Krunchy Dream’ welcomes Russian customers after Krispy Kreme exit
Russians craving a doughnut fix can now visit ‘Krunchy Dream’, a string of new cafes opening where U.S. chain Krispy Kreme Inc (DNUT.O) shops once stood, as the latest imitation Western brand hits Russian streets.
Soon after Russia launched what it calls a “special military operation” in Ukraine, Krispy Kreme suspended all shipments of doughnut making supplies and ingredients to Russia and ended the agreement with its lone Russian franchisee.
The U.S. chain was one of scores of Western firms to leave the country and other apparent imitations have since sprung up in Russian cities, with Stars Coffee running coffee shops formerly owned by Starbucks Corp (SBUX.O) and “World of Cubes” filling the void left by Danish toymaker Lego.
A company owned by restaurateur Arkady Novikov, Krispy Kreme’s former franchise partner, applied to register the Krunchy Dream trademark in late September, the RBC daily reported on Monday.
Novikov Group and Krispy Kreme did not immediately respond to requests for comment.
In a financial results statement in August, Krispy Kreme said it had closed 30 franchise shops in Russia.