There was a time, not that long ago, when customers lined up in droves to get a hot Krispy Kreme glazed doughnut. People clamored to purchase franchise rights and throw open the doors as quickly as possible. Life at Krispy Kreme was looking up.
Until everything came crashing down. Stores started to struggle, lawsuits popped up, and U.S. Securities and Exchange Commission investigations were launched.
The recent debacle over Toyota’s recalls tells a cautionary tale about growth for all companies, including quick serves.
The leaders at the carmaker were accused of relentlessly pursuing market share increases at the expense of product quality. In testimony to a U.S. congressional panel, Toyota CEO Akio Toyoda himself admitted, “Toyota’s priority has traditionally been the following: first, safety; second, quality; and third, volume. ... These became confused.”