New LaMar's Donuts owner ready to compete

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LaMar's Donuts' new owner Bill Risberg does not fear the latest doughnut fad known as Krispy Kreme. |ret||ret||tab|

So for him, taking ownership June 5 of the LaMar's Donuts franchise at 3654 S. Campbell Ave. located less than a block from Springfield's future Krispy Kreme site is not risky.|ret||ret||tab|

"There absolutely are no fears," Risberg said. "I knew that Krispy Kreme was coming into the market ... as I was in the process of purchasing this business." |ret||ret||tab|

Risberg bought the franchise rights for $175,000 from Kevin Keyes, owner of the doughnut shop since 1998. |ret||ret||tab|

To allay any fears, Risberg did his homework. |ret||ret||tab|

Findings led him to believe his store could not only survive next to Krispy Kreme, but might thrive. |ret||ret||tab|

"I did a lot of research with the franchisee," he said. Risberg learned that sales increased in two other LaMar's markets Independence and Denver when Krispy Kreme stores opened there.|ret||ret||tab|

"I talked to enough people and concluded that (Krispy Kreme is) just going to help us build awareness and build a category for doughnuts," Risberg said. |ret||ret||tab|

"It's kind of (like asking), Why does Burger King want a location right next to McDonald's?'"|ret||ret||tab|

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Time will tell'|ret||ret||tab|

Another competing doughnut franchise, Daylight Donuts, locally owned by Dwight Martin, is hearing the Krispy Kreme buzz, too.|ret||ret||tab|

"People remind me about every other day" that Krispy Kreme is coming, Martin said. "We feel like we can compete. We're just concentrating on taking care of our customers. We're not anticipating doing anything different."|ret||ret||tab|

That sentiment is partially based on what Martin has learned from fellow franchisees.|ret||ret||tab|

Like LaMar's Donuts, he said, "They say that Daylight shop sales have gone up," in markets where Krispy Kreme has opened shop. "I guess because all the talk about it (doughnuts are) on people's minds. Time will tell for us, but that's what they say," Martin said.|ret||ret||tab|

Competition has been very good, apparently, for the big business of doughnuts. |ret||ret||tab|

According to a LaMar's Donuts fact sheet, Americans consume 10 billion doughnuts a year.|ret||ret||tab|

"We're not getting too excited either way," Martin said. "We feel like if we take care of business, we'll be fine. If we can't compete, then we shouldn't be there."|ret||ret||tab|

The competition in Springfield will heat up this fall when Krispy Kreme which broke ground last week on the corner of Campbell Avenue and Primrose Street plans on opening.|ret||ret||tab|

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A different line of products'|ret||ret||tab|

Keyes decided to sell the business in March 2001 due to health problems, "before Krispy Kreme was an idea," he said. |ret||ret||tab|

He feels LaMar's will sustain its market share because of the variety of doughnuts available. |ret||ret||tab|

Keyes said LaMar's offers 61 different kinds of doughnuts and pastries, compared to Krispy Kreme's 16 doughnut types. |ret||ret||tab|

LaMar's selection includes cinnamon rolls, apple fritters, filled doughnuts and a wide range of cake doughnuts.|ret||ret||tab|

"We really have a different line of products" than Krispy Kreme, Risberg added.|ret||ret||tab|

Still, Risberg knows a good thing when he sees it, even if it does come from a competitor. |ret||ret||tab|

He has taken a page out the Krispy Kreme book and now serves hot doughnuts on Saturday mornings. |ret||ret||tab|

The hot doughnut craze has produced a double-digit increase in Saturday sales, he said.|ret||ret||tab|

Another change is the acceptance of credit cards made in an effort to generate larger orders, especially from the approx-imately 50 business and wholesale customers. |ret||ret||tab|

He said businesses often order doughnuts direct for meetings, parties or as weekly treats for employees. LaMar's Donuts resellers are mostly privately owned convenience stores like Rapid Roberts, Express Lane, Signal, Total and Quik Pantry. |ret||ret||tab|

He said deliveries are made to towns adjacent to Springfield on orders above $10. |ret||ret||tab|

Risberg also plans to start offering fundraising programs for organizations that sell LaMar's Donuts coupon strips.|ret||ret||tab|

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History|ret||ret||tab|

Risberg brings 25 years of food service marketing to LaMar's, most recently working for The Winnie Group in Springfield. |ret||ret||tab|

Other local work was for Noble & Associates as management supervisor for its Frito Lay account. Risberg also was director of sales promotion and marketing at Long John Silver's corporate headquarters in Lexington, Ky.|ret||ret||tab|

He hopes to continue the sales growth the franchise has seen every year here since opening in 1996.|ret||ret||tab|

The smallest year-to-year growth experienced was last year, he said, when sales increased 6 percent over 2000. The biggest increase was from 1999 to 2000, when Keyes targeted the wholesale sector and sales jumped by 16 percent. |ret||ret||tab|

LaMar's Donuts was founded in Kansas City in 1960 by Ray LaMar and began franchising in 1990.|ret||ret||tab|

At the end of last year, there were 37 stores in seven states, including eight cities in Missouri.|ret||ret||tab|

An aggressive growth plan calls for 1,200 stores in the next decade, a LaMar's press release stated. The company is privately owned. |ret||ret||tab|

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