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Brother, can you spare a nickel?

In a sign of the oh-so-like- the-Great-Depression times, Krispy Kreme Doughnuts (NYSE: KKD) franchises in Seattle, Washington and Portland, Oregon, along with other related franchisees in the Pacific Northwest and Hawaii, are selling coffee for five cents. The one-per-customer-per-visit bargain is being named the Krispy Kreme New Deal.

I love the concept. Dunkin Donuts has been offering lattes and breakfast sandwiches for 99 cents in the afternoons to boost traffic in the slow time; and Starbucks (NASDAQ: SBUX) is about to roll out a "gold card" good for 10% discounts on all products. The card, which carries a $25 annual membership fee, is not a credit card but is a parallel program with the regular Starbucks gift card, which allow you to receive bonuses (a free flavoring or other upgrade for your latte beverage, for instance).

Unfortunately, the two simultaneous and mutually exclusive card programs are confusing and a scant benefit. Customers used to buy 10, get one free punch cards at independent coffee houses will see quickly that paying for a 10% discount is hardly a great deal.

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The Coffee Stock: Five-cent coffees at Krispy Kreme franchises a sign of old-fashioned smarts originally appeared on BloggingStocks on Mon, 20 Oct 2008 17:54:00 EST. Please see our terms for use of feeds.

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