How Soaring Gas Prices Are Helping Doughnut Chains
Believe it or not soaring gas prices are serving to help doughnut chains. Find out how.
This article is more than 2 years old
Doughnut chains around the country are struggling like every other industry with skyrocketing gas prices. Interestingly enough, two competing stores are taking advantage of the soaring fuel cost. Both Dunkin Donuts and Krispy Kreme are using this opportunity to market new promotions for their companies, attempting to draw in people who inflated prices have been financially affected.
Krispy Kreme is one of the donut chains that released a new campaign around gas price inflation. Between April 13 and May 4, one box of a dozen glazed doughnuts will cost the same price as the national gas average. Starting today, a box of these doughnuts will cost $4.11, significantly reducing the dozen’s usual fee. This promotion is to “leave a sweeter taste in motorists’ mouths,” according to a company statement attached to their press release.
A dozen Krispy Kreme donuts typically costs about $12. Eight dollars off a box of sweets is a considerable reduction and could ultimately draw larger crowds to this donut chain nationwide. As gas costs continue to fluctuate, Krispy Kreme will have significantly cheaper donut boxes for customers to enjoy, changing the price weekly according to fuel price. Many analysts believe that gas prices are plateauing, but that could change as the geopolitical conflict in Europe continues to fester.
Alongside Krispy Kreme stands the doughnut chain’s most significant competitor: Dunkin’ Donuts. This nationwide chain also has a gas-related promotion ready to go, with the fuel company Shell jumping onboard. According to a recent press statement, the Shell Fuel Rewards program will incentivize drivers to buy some Dunkin’ Donuts coffee and pastries. Members will be able to save 30 cents per gallon at Shell stations after their fifth Dunkin’ Donuts beverage. This promotion will only last one month, from April 12 to May 12.
It’s a strangely convoluted promotion, with both Dunkin Donuts and Shell incentivizing the customer to shop at their businesses. But does saving 30 cents from each gallon of gas significantly reduce a driver’s expenses, especially after buying five drinks? And does the cost of each gallon reduces continuously after five more Dunkin’ Donuts beverages? Many questions are circulating about how this promotion will work, but the biggest one is whether this partnership will legitimately save people money?
Promotions popping up in the restaurant industry are relatively rare at this time. With gas prices accelerating the price of just about everything, including the cost of ingredients, restaurants are under continuous financial pressure. These two donut chains are taking a different approach, beckoning customers to buy their products through various marketing propositions based on the inflated gas prices.
Whether donut chains are capitalizing on the frightening precariousness of the gas industry or simply trying to help struggling citizens out, these promotions are inventive ways for people to hopefully save a little money. But these chains aren’t the only restaurants attempting to help Americans out with gas prices; Bojangles, the fast-food chain, is giving out gas gift cards to its customers. For every purchase of a Bojangles Family Meal, customers will receive a $10 gift card to use at a local gas station. According to a representative at Bojangles, this promotion will continue until supplies run out.
