The Krispy Kreme donut chain thinks the way to turnaround sagging sales is to serve up soft-serve ice cream. Here's a good analysis of just why Krispy Kreme plus Cold Stone equals a double scoop of disaster.

Sales at [KK] stores open at least a year, dropped 6.5% in the six months ended Aug. 3. And that’s their money months!

. . . many [Cold Stone] franchisees are selling their stores, overwhelmed by soaring bills and shrinking profits. Some have lost their homes, broken their retirement nest eggs or filed for bankruptcy. One list on a Cold Stone Web site recently had 303 stores for sale — more than 20% of the company’s 1,384 as of last December.

The writer Bob Phibbs provides this gem of an insight, "This is like Kmart buying Sears - two troubled concepts holding on but unable to climb out of the whole they are in due to short-sighted company officers."

. . . KK made their money on selling in bulk, they didn’t care for onesy-twosy sales, they wanted dozens of boxes to go out the door - that’s how their business model was based.  It was a donut factory that had to work overtime to turn a profit.

. . . The lesson to business owners everywhere is simple. When your market has moved or changed, change with them but don’t do more of the same.

And don't compound your problems with fresh problems.

Krispy Kreme to Battle Coldstone Creamery « Bob Phibbs, the Retail Doctor’s Retail Sales Blog