Between Russia’s war on Ukraine and regular inflation, the cost of gas is seeing some major volatility — while down from a nationwide average record high of $4.33 in mid-March, April 11th’s price of $4.11 a gallon is still nearly 30% higher when compared to last year.
This situation is causing serious anxiety for many drivers and regular ride-share commuters — 90% of drivers in the U.S., UK and European Union countries were at least “slightly” concerned about the cost of gas while 45% said they’ve reduced the amount and length of their rides to compensate.
And when a dollar stretches less far, “fun” or discretionary purchases like donuts are usually the first to go — according to a recent report from market analytics firm Jungle Scout, 70% of surveyed drivers cut down on “fun” and “impulse buys” to make up for gas prices.
Donuts For Gas?
Riding the zeitgeist of national concern over gas, Krispy Kreme (DNUT) – Get Krispy Kreme, Inc. Report just launched a promotion in which it’ll match the cost of a box of donuts with the average cost of gas across the country.
Each Wednesday between April 13 and May 4, 2022, the beloved American donut chain will sell a box of 12 Original Glazed Doughnuts for the national average of a gallon of regular gasoline. Normally they cost around $7.99 depending on location. Any fluctuations in gas prices (at $5.763 a gallon, California has some of the highest ones in the country) over the next few weeks will still be a bargain compared to what one would regularly pay.
“Inflation and high gasoline prices are serious and forcing families to make tough tradeoffs,” Krispy Kreme’s Chief Marketing Officer Dave Skena. “We know that despite the high gas prices people have to be out and about anyway.”
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For the length of the promotion, Krispy Kreme will post the price of a box donuts on Facebook (MVRS) – Get Meta Report, Instagram and Twitter (TWTR) – Get Twitter, Inc. Report, as well as on its web site each Wednesday morning.
“For the next several Wednesdays, we hope providing a little doughnut deflation will allow them to share some smiles during a difficult time,” Skena said.
While aligning donut prices with the cost of gas is sure to bring a smile to many a Krispy Kreme fan’s face, inflation is a serious concern over its impact on food prices in particular — in February, the average American’s monthly food bill rose by 7.9% from a year ago. Such a steep incline has not been observed since 1981.
To make matters worse, lower-cost items were particularly prone to inflation. Grocery costs at dollar stores spiked by 14.3% from 2021 and 22.5% from 2020, leaving those who are already looking for the cheapest version possible with few places to turn.
Krispy Kreme has had its own bumpy road as both a private and public company. Public since hitting the NASDAQ at $21 a share in 2000, Krispy Kreme was acquired by the consumer good investment firm JAB Holding Company for $1.35 billion in 2016.