The CEO of popular doughnut franchise Krispy Kreme says the company is adding robots to its production line to add frosting, filling, sprinkles, and even package the sweet treats.
"Probably within the next 18 months, you'll see some automation starting to go into the frosting, the filling, the sprinkles, and even the packaging," Krispy Kreme CEO Mike Tattersfield told Yahoo Finance.
The company announced the move as part of its Investor Day activities and is aiming to generate $2.15 billion in revenue by fiscal year 2026.
Reports say the firm believes there is scope to add robots to both its production line as well as store fronts in the next few years.
"We've got some pretty big factory stores...we do 12,000 points of access today, which get fresh doughnuts globally," Tattersfield said, emphasizing the major undertaking it is to get so many fresh doughnuts to the various locations.
"You need to start looking at what the automation capacity of that is because it is going to the grocers. It is going to the convenience shops."
By the end of the 2022 fiscal-year, Krispy Kreme believes it will have close to 5,400 outlets in 30 countries, resulting in approximately $475 million in total revenue.
By 2026, it's estimating more than 12,000 points of access in 45 countries, with plans to bring in more than $660 million in revenue.
Meanwhile, building automated production lines will cost $6 million in investment resulting in $2 million of annual savings with 18 per cent production within the next 18-months.