Is it the end for Krispy Kreme's 'Hot Now' signs?

Its products may inflate your waistline, but Krispy Kreme is slimming down. The traditional "Factory" store, where you'll bathe in baking aromas and watch the elaborate oven contraption oozing sugary glaze over doughnuts, is getting left behind. In their place: counter service locations.

In the early part of this decade, Krispy Kreme nearly fell down the doughnut hole over a too-big-too-fast expansion plan. Now, having steadied somewhat from its tailspin, the company is gradually growing again, but this time, with extreme reserve -- and smaller stores.

This week in Knightdale, North Carolina, Krispy Kreme started rolling out what it calls its Krispy Kreme Neighborhood Shops. Just 900 to 1,200 square feet as opposed to double that for a traditional location, the Neighborhood Shops squeeze into small spaces such as train stations and shopping malls by leaving out the doughnut making equipment. Instead, the goodies will be trucked in.