Krispy Kreme launching first ads to tout Henderson, LV expansion

Phil Levine

Friday, Jan. 14, 2000 | 11:05 a.m.

Lincoln Spoor says the Las Vegas success of Krispy Kreme Doughnuts owes as much to a positive word-of-mouth buzz as to fresh filling and icing.

Even in the information age, Spoor believes no amount of advertising can substitute for individual customers spreading the gospel about what he calls "the world's best doughnut."

"Other than one Wheel of Fortune promotion with Vanna White, we haven't spent a dime on advertising since we opened," said Spoor, addressing a luncheon sponsored last week by the Las Vegas chapter of the American Marketing Association.

Spoor's no-advertising policy is about to change.

"We'll be starting an ad campaign this month to alert customers about our new locations," he said. "And our new Henderson store will feature one of the largest 'Hot Doughnuts Now' signs anywhere.

"Our Henderson customers will definitely know that we've arrived."

The Henderson store at the intersection of Eastern Avenue and Lake Mead Boulevard is set to open Feb. 1. A second new store is scheduled to open in April at the intersection of Martin Luther King and Craig Road, with a third outlet at Sahara Avenue and Nellis Boulevard likely to be in business by the fall.

Spoor controls the Krispy Kreme franchise rights in both Nevada and Utah. He currently operates three Las Vegas stores, one at the Excalibur and Texas Station hotel-casinos respectively, and a main location at 7015 W. Spring Mountain Road.

Based in Winston-Salem, N.C., Krispy Kreme has for decades been a a legend and a staple among baked goods in the South. The company first opened for business in Las Vegas in 1998, thereby establishing its first Western U.S. outlet.

The arrival did not go without notice.

"I've had people leave me messages and say 'thank God you're here ... you're product is better than sex,"' said Spoor. "I know many people drive up to 25 minutes to get to our store now. That's why we're working hard to make the product more readily convenient."

In another expansion, the company recently signed an agreement calling for the sale of Krispy Kreme doughnuts and hot coffee at all 19 Raley's supermarkets in Las Vegas; the project is being gradually rolled into the stores over the next several months.

Spoor said he currently has a 15-year agreement with Krispy Kreme, calling for five Las Vegas stores, one in Reno and four additional outlets in Utah.

Despite his unbridled boosterism of all things Krispy Kreme, Spoor has some worries.

"Our company has filed preliminary documents for an initial public offering that will likely happen during the first quarter," he said. "That may present a challenge to the company, to see whether or not it can maintain its small company soul once it's public."

Spoor pared down future challenges facing his franchise to five key ingredients: consistency, distribution, market penetration, management and keeping "the promise."

"We don't sell any product that doesn't look just right," he said. "We want our product to be consistently of the highest quality, and that's one reason I'm up at midnight worrying about things such as fillings and chocolate glazes."