Krispy Kreme to Close in Iceland

The American doughnut chain Krispy Kreme will close in Iceland, reports.

The company operated three locations in Iceland, all of which were inside Hagkaup department stores. Hagkaup and Krispy Kreme have decided, however, to end their collaboration.

The Krispy Kreme locations at the Kringlan and Skeifan shopping malls will close for good on July 1, 2019. The location at the Smáralind shopping mall in Kópavogur will close on October 1, 2019.

Viðar Brink, the director of Krispy Kreme operations in Iceland, said that the decision to close the franchises was simply a matter of production costs being too high. “[W]e’ve had a really good time with good people,” he wrote in a company announcement. “We’re going to finish out these last three months at Smáralind with a smile.”

Iceland Did Not Go Nuts for Dunkin’ Donuts

Dunkin' Donuts in Iceland.

All four Dunkin’ Donuts locations in Iceland have now been closed, RÚV reports. According to Sigurður Karlsson, the CEO of Basko, ehf. – the company which also owns and operates Iceland’s 10-11 convenience store chain – the shuttering comes as a result of high operational costs. “It’s a disappointment, of course, but not everything you try is going to work out.” Some employees would be laid off, he said, while others would be transferred to new positions elsewhere within the company.

Dunkin’ Donuts had four locations in Iceland: one in Reykjavík’s Kringlan shopping mall, one in a 10-11 in Kópavogur, one in Reykjanesbær, and another in the Keflavík airport. All four closed on New Year’s. The chain’s first location in the country opened in summer of 2015 on Reykjavík’s main street, Laugavegur, but closed on November 1, 2017.

“The reception was good at the beginning,” remarked Sigurður, but even with selling their brand name doughnuts to other stores around Iceland (bringing the total number of Dunkin’ Doughnuts-selling locations to 11), “high labor costs, operational costs, and production costs” were, he concluded, too high to sustain the venture.

Sigurður notes that the Dunkin’ Donuts’ difficulties are not restricted to Iceland. The chain has also had problems making inroads all over Europe, with the number of locations in Denmark having been reduced and all locations in Sweden having closed as well.

Costa Considers Opening Location in Iceland

Costa, the second-largest coffeehouse chain in the world, is proposing to open a franchise in Iceland, Vísir reports. The corporation is currently considering locations in downtown Reykjavík, although it is not currently known who will hold the franchise license in Iceland.

Costa, which was established by Italian immigrants to Britain in 1971, is the largest coffeehouse chain in Britain and operates 3,800 locations in 32 countries worldwide, the majority of which are in Britain. A spokesperson for the corporation says that the company’s goal is to operate 1,200 coffeehouses in China before 2020. The corporation was purchased in 1995 by Whitbread, which also owns and operates Premier Inn, the largest hotel chain in Britain.