Krispy Kreme dunks doughnut entrepreneur

  • Janice Podsada / Herald Writer
  • Thursday, January 31, 2002 9:00pm
  • Business

By Janice Podsada

Herald Writer

EDMONDS — Carpet cleaner Jim Nelson figured it was a piece of cake, a slam-dunk, a hole-in-one.

Nelson, 50, owner of Nelson Professional Carpet Cleaning in Edmonds, has been cleaning carpets for 25 years, but when business "got kind of slow" this month, he diversified his product line.

Instead of adding a window-washing or drapery-cleaning service, Nelson added a line of Krispy Kreme doughnuts,

"It seemed logical," Nelson said, given the popularity of the doughnuts and their relative scarcity in the area.

For two Fridays in a row, Nelson got up at 4 a.m. and made the two-hour round trip from Edmonds to Issaquah, where he picked up 60 dozen Krispy Kremes for $5.49 a box. He put up a sign in his store window announcing their arrival, marked them up to $12 a dozen, and watched those 720 doughnuts fly out the door like hot cakes.

Then the operation turned stale.

Executives at Krispy Kreme’s parent company, ICONN in Chicago, got wind of Nelson’s doughnut-selling scheme and asked him to stop. There would be no more making money off somebody else’s dough.

They weren’t trying to single Nelson out or take him to the cleaners. Coffee shops, espresso stands and cafes in the area do the same thing, said Gerard Centioli, president of ICONN.

Centioli said the company will go after those operations as well when it hears about them.

No one is authorized to sell Krispy Kremes except the state’s single outlet in Issaquah. Nonprofit groups have received permission to sell fund-raising coupons, but they can be redeemed only in Issaquah, Centioli said.

"We’re usually tipped off when someone calls to complain or at our factory when a customer comes in on a regular basis to buy large quantities," Centioli said.

If the Krispy Kremes you purchased were resold illegally, chances are they are overpriced and outdated.

"We don’t even sell day-old," Centioli said. "We don’t even sell over four hours."

Most people, including Nelson, are understanding when the company asks them to stop, Centioli said.

"But we will go further if someone tries to continue. We have involved our attorneys. There’s nothing more important than our name and reputation.

"There is a huge demand for Krispy Kremes, and people are trying to exploit that. They’re not fresh, they’re expired, and it’s just not right."

Nelson’s doughnut venture was short-lived, but he may try selling bottled water next month.

"People didn’t stop when they saw a sign for carpet cleaning. But they sure stopped when they saw see a sign for Krispy Kremes, " said Nelson, sporting a black T-shirt with a brown doughnut emblazoned on the chest.

But there is hope for doughnut lovers.

Centioli said Krispy Kreme plans to open nine more locations in Washington state in the next five years.

Within the next year, Centioli said, a Krispy Kreme outlet will open "somewhere" in the north Puget Sound area.

But which city, where?

Centioli wouldn’t bite.

"If you’re in Everett, you will be in our market area," was all he would say.

You can call Herald Writer Janice Podsada at 425-339-3029 or send e-mail to podsada@heraldnet.com.

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