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Krispy Kreme is moving forward with plans to open a Times Square flagship next month, CNN Business reports. During a normal year, this flagship’s glaze waterfall and 4,560 fresh donuts per hour would’ve appeared on every middle school band’s NYC trip itinerary.
But it’s 2020, and tourists are avoiding Times Square like native New Yorkers.
- Visits to Times Square declined 91% YoY in April; by July, visits were still down 83% per Times Square Alliance data.
- Krispy Kreme CEO Mike Tattersfield said the flagship won’t hit original sales projections.
So why move forward? Krispy Kreme’s still bullish on its potential to expand in NYC after its five smaller stores met expectations. The brand introduced donut delivery in February, so its flagship could fulfill mobile orders until foot traffic returns.
That’s not an option for everyone. Without the revenue from souvenir tees, retailers from San Francisco (Gap) to NYC (Neiman Marcus) are closing their flagship locations. So long as the pandemic keeps tourists trapped at home, similar shopping destinations are in jeopardy.