Krispy Kreme Ends McDonald’s Partnership, Refocuses on Franchise-Driven Growth
Krispy Kreme is officially ending its high-profile partnership with McDonald’s, citing operational and cost challenges, and franchisees may be better off for it.
Krispy Kreme is closing the chapter on its high-profile partnership with McDonald’s. After a two-year pilot program that brought the iconic doughnuts to more than 2,400 McDonald’s locations across the U.S., the two brands will officially part ways on July 2, 2025.
The decision was based on cost concerns and operational challenges that made the collaboration unsustainable, particularly for franchisees.
Why It Matters for Franchisees
Franchisees struggled with low returns and increased logistics demands, including early morning delivery timelines and additional packaging standards required by McDonald’s. Now, the brand is shifting its attention back to its core, proprietary retail channels and global franchise expansion.
A New Era in Franchise Marketing
To support this pivot, Krispy Kreme is launching a refreshed franchise marketing playbook. Expect hyperlocal campaigns like the “Your Neighborhood Krispy Kreme Experience” and digital loyalty initiatives tailored for repeat local visits. Experiential marketing will also take center stage, including pop-ups and regional collaborations.
The Bottom Line
By stepping away from a one-size-fits-all strategy and empowering franchisees with tools for local marketing success, Krispy Kreme is realigning with a smarter, more sustainable growth model.