Krispy Kreme Pushes Into Starbucks Turf With Focus on Coffee

  • Doughnut chain starts using `barista' term at one location
  • CEO sees opportunity to catch up after losing ground in java

Krispy Kreme, looking to get more respect for its coffee, has begun calling workers 'baristas' at one test location.

Luke Sharrett/Bloomberg
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Krispy Kreme Doughnuts Inc., facing slower sales growth and more demanding customers, is pushing deeper into Starbucks Corp.’s territory.

The company is doing more to promote its coffee, which for years was an afterthought at the doughnut chain. At a test location in Clemmons, North Carolina, workers are grinding beans and using a manual espresso machine to make lattes and cappuccinos. They’re even referring to themselves as baristas, and employees are taking customers’ names with orders -- an approach made famous by Starbucks.