Dunkin' Donuts has regained its monopoly on the Medford doughnut market.
Three weeks ago, after two and a half years in business, the Wellington Circle Krispy Kreme closed its doors.
"They put a sign up one day - 'closed,'" Medford Mayor Michael McGlynn said. "It was [a surprise] to me."
Despite its high initial profitability, business had slowed for the Krispy Kreme, the first of several of the chain in the Boston area. Jan Companies, a conglomerate that owns and operates other corporations, including that which operated the Medford Krispy Kreme, decided to sell the franchise.
"We wanted to stop working with the business. The infrastructure was very expensive," said Janice Mathews, Vice President of Jan Companies. "Business was fantastic at the beginning. We did $500,000 the first week."
The area around Krispy Kreme has recently experienced significant construction, which Mathews said impeded business.
"The roadwork that took place out front for the last year certainly hurt us tremendously," Mathews said.
The Krispy Kreme property is now part of the Station Landing development project, a residential and commercial construction effort undertaken by National Development. The real estate, though adjacent to the Station Landing site, was not affiliated with the development project when construction began.
However, when the Jan Companies decided to sell the property, the Newton-based National Development real estate company purchased it to incorporate it into their project.
Ted Tye, Managing Partner of National Development, told the Medford Transcript that "we wanted to get [the property] because it's such a great retail location."
The first phase of construction began in May 2005 and the first occupancy is set for May/June 2006. 262 residential units and 70,000 square feet of retail space are currently underway.
Station Landing is a Transit Oriented Development, McGlynn said. It is located at the Orange Line Wellington T stop and, according to the mayor, is based on a new "urbanism" where people can "live, work, and play within their home communities."
Starbucks and Walgreen's will be among the stores included in the Station Landing retail. A later phase of the project will include 127 condominiums, priced between $450,000 and one million dollars, according to McGlynn.
"A project this big is tough to do all at once," he said. Developers "want to make sure that future use [of the Krispy Kreme space] is compatible with Station Landing."
In addition to closing the Medford Krispy Kreme store, the Jan Companies also closed the establishment in Saugus.
"The Krispy Kreme doughnut phase died dramatically," McGlynn said.
However, sophomore Kellie MacDonald said that the loss of the store is unfortunate.
"I'm sad to hear that they're closing, because I love Krispy Kreme doughnuts and now it will be much harder to find them," she said.
According to their Web site, "National Development is an interdisciplinary real estate company that provides development, construction, property management and investment acquisition services."
