Krispy Kreme won’t close yet

Oct. 1 announcement from company suggested it was closing Daly City store

DALY CITY — Daly City officials said that their Krispy Kreme store remains open and is doing quite well despite a recent company announcement that the doughnut shop would close as of Oct. 1.

The Sullivan Avenue Krispy Kreme, paired with an In-N-Out Burger, opened to much ballyhoo and long lines in 2001, and the store is “doing very well,” said Daly City Economic Development Director Terry Sedik.

But an Oct. 1 announcement from the North Carolina doughnut maker declared that the hot doughnuts in four Northern California cities would go cold that same day, including the Daly City store.

“As part of its turnaround, Krispy Kreme has announced that its retail stores in Roseville, Daly City, Saratoga and Elk Grove, California closed on Sunday, October 1,” Spokesman James Goldman said in the Oct. 1 announcement.

A company spokesman contacted Monday stood by the Oct. 1 statement, but Daly City's doughnut destination is still open and quite busy, Sedik said.

“We have, in fact, been told that it’s doing really good business” by Krispy Kreme’s corporation, Sedik said, noting that the company is a good neighbor involved with the community. The city touches base with the company regularly to stay on top of any potential problems.

“They’re both (Krispy Kreme and In-N-Out) going strong, and that’s exactly what we hoped to hear,” he added.

After growing rapidly around the turn of the century, thanks in part to word of mouth and “Hot Donuts” signs that attracted customers like moths to a flame, the company was hurt in recent years by the low-carb diet craze, over-expansion and an economic recession.

Currently the Winston-Salem, N.C.-based company, founded in 1937, has stores in the U.S., Canada, the United Kingdom, Australia, South Korea and Mexico. It boasted revenues of $540 million in fiscal year 2006 and $707 million in the previous fiscal year.

Vice Mayor Sal Torres was one of the few people who initially opposed the doughnut shop coming to Daly City because, he said, he was concerned about the amount of fast food establishments opening in Daly City at the time.

“I came around because I saw the value of having an establishment like Krispy Kreme in the neighborhood,” Torres said. “I think Krispy Kreme has proven itself to be an invaluable resource to our schools and communities.”

He said he’d like to see it stay there but stressed that it was a snack food and said that the nation’s dietary habits were trending away from such intake.

dsmith@examiner.comBay Area NewsLocal

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