Krispy Kreme Plans 33 New York-Area Franchise Shops

Krispy Kreme plans to add 33 shops across the New York City metropolitan area over the next five years through an agreement with an existing franchisee. The commitment forms part of a broader shift towards franchise-led expansion, alongside growth in the doughnut brand’s US retail delivery network.

New York agreement expands franchise plans

The New York-area development agreement was outlined during Krispy Kreme’s third-quarter earnings call, reported by QSR Web on 11 November 2026. It gives the company a route to expand in one of the country’s largest consumer markets while pursuing what it describes as a more capital-light business model.

The 33 shops are planned openings over a five-year period, rather than additions to the current estate. The report did not identify the franchisee behind the agreement or provide individual shop addresses and opening dates.

Krispy Kreme already works with more than 20 franchisees across the United States. WKS Restaurant Group, identified as its largest US franchisee, is also looking to expand in the West, although the report did not specify a development total for that operator.

Together, these plans place existing franchise relationships at the centre of the company’s domestic shop expansion. For the US franchise community, the New York agreement is a concrete development commitment within a wider change in how the brand intends to grow.

Franchisees expected to generate a larger sales share

Franchisees currently account for approximately 42% of Krispy Kreme’s systemwide sales. The company expects that proportion to reach 50% by fiscal 2027, making franchise operations an increasingly significant part of its business.

That target concerns the share of sales generated by franchisees, not the proportion of shops under franchise ownership. It also relates to the wider system rather than the United States alone.

The company’s turnaround strategy combines a lower requirement for corporate capital with efforts to strengthen franchisee economics and deliver sustainable, profitable growth. Its international expansion is proceeding alongside the US plans, with nearly 100 international shop openings reported so far this year and multiple new franchise development agreements.

The New York commitment therefore sits within a broader franchise-led programme. However, the five-year timetable for those 33 shops is separate from the nearer-term ambition for franchisees to generate half of systemwide sales.

Retail delivery provides another route to customers

Beyond traditional shops, Krispy Kreme is expanding its fresh delivery network through grocery, mass merchandise, club and convenience retailers. These outlets represent a different route to customers from a dedicated doughnut shop.

The US network now comprises approximately 7,700 locations, including franchise-operated delivery outlets. It added 715 net new locations year on year, following a strategic reset in which the company exited approximately 1,500 underperforming delivery outlets last year.

Those figures should not be read as franchise shop counts. They describe the distribution network through which fresh products reach retail customers, while the New York agreement covers planned shops.

The distinction matters when assessing the scale of the expansion. Krispy Kreme is developing both its shop presence and its availability through other retailers, with fresh delivery and digital channels supporting US organic revenue growth of 0.9% in the third quarter.

Turnaround figures show the financial context

Krispy Kreme reported third-quarter net revenue of $328.8 million, down 12.4% year on year. The company said the decline primarily reflected the refranchising of its Western US and Japan businesses. Global systemwide sales, meanwhile, increased 1% on a constant-currency basis to $490.2 million.

Capital expenditure totalled $28.6 million for the year to date, down 65% from the corresponding period in 2025. Free cash flow improved by $82 million year on year during the first three quarters.

The company raised its fiscal 2026 revenue guidance to between $1.35 billion and $1.4 billion, while maintaining its adjusted EBITDA outlook of $140 million to $150 million. These remain company forecasts, rather than completed results.

Practical takeaway: Prospective franchise partners should distinguish signed development commitments from completed openings, and shop growth from retail delivery expansion. The New York plan offers a clear five-year commitment, but individual locations and opening schedules remain important details to follow.