Krispy Kreme has recently faced a significant cybersecurity incident that has disrupted its online ordering system across the United States. The attack, which was detected on November 29, has led to operational challenges, although physical stores remain open for in-person orders.
Key Takeaways
Krispy Kreme's online ordering system has been disrupted due to a cybersecurity attack.
The incident was reported to the U.S. Securities and Exchange Commission (SEC) on December 11.
The company is working with cybersecurity experts to investigate and mitigate the impact.
Physical stores continue to operate normally, and in-store orders are unaffected.
Overview Of the Incident
Krispy Kreme disclosed the cybersecurity incident in a regulatory filing, indicating that unauthorized activity was detected within its information technology systems. The company stated that the attack is likely to have a material impact on its business operations, particularly affecting digital sales.
In a statement, Krispy Kreme acknowledged the inconvenience caused to customers and assured them that they are working diligently to resolve the issue. The company has engaged external cybersecurity experts to assist in the investigation and recovery process.
Impact On Operations
The attack has primarily affected online ordering capabilities, with many customers reporting difficulties in placing orders through the Krispy Kreme website. Despite these challenges, the company confirmed that its physical locations remain open and operational, allowing customers to purchase doughnuts in-store or at grocery and convenience stores.
The expected costs associated with the incident include:
Loss of revenue from disrupted digital sales.
Fees for cybersecurity experts and advisors.
Restoration of impacted systems.
Krispy Kreme has indicated that it holds cybersecurity insurance, which is expected to offset some of the financial burdens resulting from the incident.
Broader Context
This incident is part of a troubling trend in the foodservice industry, which has seen a rise in cyberattacks targeting major brands. Earlier this year, other companies like Starbucks and Panera also experienced significant cybersecurity breaches, highlighting the vulnerabilities within the sector as it increasingly relies on digital platforms for sales.
Experts emphasize the importance of robust cybersecurity measures, especially for businesses that depend heavily on online transactions. The incident serves as a reminder for all companies to enhance their security protocols and prepare for potential cyber threats.
As Krispy Kreme continues to address the fallout from this cybersecurity incident, the company is committed to restoring its online ordering capabilities as quickly as possible. Customers are encouraged to visit physical locations for their doughnut needs while the company works to resolve the ongoing issues. The full impact of the incident will likely be assessed in the upcoming quarterly earnings report, where more details may emerge regarding the financial implications of this breach.
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Sources
Hackers find hole in Krispy Kreme Doughnuts' cyber-security, BBC.
Krispy Kreme says cybersecurity incident is impacting online orders in US | Reuters, Reuters.
Krispy Kreme admits there's a hole in its security • The Register, The Register.
Krispy Kreme online ordering disrupted by cyberattack, Cybersecurity Dive.
Krispy Kreme hit with cybersecurity attack on its IT systems, Nation's Restaurant News.