Photo by Tom Sharrow/SoNourished.com

Everyone loves a good doughnut. At least, you did before you started the ketogenic diet.

However, Krispy Kreme is having trouble with its Australian locations. In the early 2000s, Krispy Kreme experienced a rapid expansion throughout the country. Yet, In recent years, the United States-based doughnut franchise has had to close many of the stores throughout the land down under. What happened?

The culprit: low-carb living

A major factor in the financial troubles of Krispy Kreme is the overall diet of the Australian public. People that reside in that country typically consume less sugar than the average American. As Australians are becoming ever more health-conscious about their sugar consumption, they are cutting out sugary snacks, such as donuts. This low-carb lifestyle has been a massive hit in Australia and is a significant reason why the doughnut chain is struggling in the country.

Australia has a lower obesity rate than the United States and is introducing reforms to control the sugar industry within the country further, meaning a low-carb emphasis will likely become even more prevalent. Krispy Kreme may be one of the first companies to struggle due to keto dieting, but it will not be the last.

Another factor in the demise of the doughnut giant is how the public views the food. In the United States, many consider donuts to be breakfast food and will eat them often. However, in Australia, many view the doughnut as a special treat and will only buy them on occasion. The fact that donuts are also typically sold by the dozen reinforces the idea that donuts are a rare delicacy and only for events.

Others just plain-glazed mistakes

Initially, the first Australian Krispy Kreme opened in the early 2000s to wild success. This led to rapid expansive under the assumption of high demand. At the peak, Krispy Kreme had a store in Australia for every 420,000 people, where the ratio in the United States was a store for every 1.4 million people. Despite the success of Krispy Kreme donuts when the store was first opened, the novelty began to fade over time, causing the initial high demand to dwindle.¹

With more information being released on the benefits of low-carb dieting being released almost every day, it's a wonder that more junk-food stores are not struggling. Krispy Kreme beginning to close locations may be bad news for the company, but the shortcomings of sugary foods, combined with a struggling sugar industry, might be pointing that the world is moving towards a better, low-carb future.

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The content on this website should not be taken as medical advice and you should ALWAYS consult with your doctor before starting any diet or exercise program. We provide nutritional data for our recipes as a courtesy to our readers. We use Total Keto Diet app software to calculate the nutrition and we remove fiber and sugar alcohols, like erythritol, from the total carbohydrate count to get to the net carb count, as they do not affect your blood glucose levels. You should independently calculate nutritional information on your own and not rely on our data. The website or content herein is not intended to cure, prevent, diagnose or treat any disease. This website shall not be liable for adverse reactions or any other outcome resulting from the use of recipes or recommendations on the Website or actions you take as a result. Any action you take is strictly at your own risk.

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