In a cyber attack, beloved doughnut maker Krispy Kreme finds a huge problem as it messes with its information technology systems for order placement online. The company said that, because of the attack, all its customers nationwide in the US cannot place orders online. This has created a headache for Krispy Kreme and its patrons.
The company became aware of “unauthorized activity on a portion of its information technology systems” on November 29, 2024, according to a filing with the U.S. Securities and Exchange Commission (SEC). The attack has hampered operations in the online ordering domain, although Krispy Kreme assured customers that fresh deliveries to its retail and restaurant partners are unaffected every day.
After being disrupted, Krispy Kreme emphasized that more than 350 locations across the country were completely functional. “Krispy Kreme shops globally are open, and consumers are able to place orders in person,” the company said, urging customers to visit physical stores while its online systems are being restored.
The doughnut maker has acknowledged that it will probably take a financial hit because of the attack. Among the losses would be sales revenues lost during the time of restoration, payments for cybersecurity specialists or consultants, and costs incurred in restoring affected systems. The company hasn’t disclosed when it expects to fully recover, even though it said that the attack was not expected to have a “long-term material impact” on its operations or finances.
Impact of the cyberattack amid festive promotions
And of course, the strike could not have come at a worse time than during what Krispy Kreme ever loves celebrating: the holidays. The Day of Dozen is the most attended Krispy Kreme event, which falls on December 12. Promotions are so appealing to customers: purchase a dozen Original Glazed doughnuts and receive 12 Original Glazed doughnuts free of charge. However, this particular promotion is limited to in-store and drive-thru orders only and will not be available online, unlike previous years.
Another holiday offering is Krispy Kreme’s Merry Grinchmass Doughnut Collection. This collection has been themed around the popular holiday tale How the Grinch Stole Christmas and inspired the doughnuts by various well-known characters from the story.
While these modes of celebration take place, a cyber attack causes a lot of turmoil for a brand that has been busy attracting digital-savvy customers and longtime patrons who have grown to depend on the ease of online ordering, particularly during the busy holiday season.
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Looking ahead: Recovery and resilience
Krispy Kreme, just like any other company, has been hit extremely hard by cyberterrorism. The attack underscores how vulnerable companies are becoming in the face of digital threats, especially because business increasingly relies on the Internet for sales. However, they have not yet quantified the full reach of the attacks or raised any possible dates within which systems might be completely restored. Nevertheless, management says the problems will not seriously affect the long-term financial health of the business.
For now, Krispy Kreme is focused on face-to-face service and satisfying their customers’ cravings through physical outlets. While the cyberattack has caused some restrictions, the company’s motto of delivering fresh doughnuts every day and delivering holiday cheer isn’t shaken. For now, there will be customers who can expect to enjoy Krispy Kreme’s signature treats, even if they can’t yet place an order with a click.
