Krispy Kreme orders student to halt doughnut resale service

ST. PAUL, Minn. (AP) -- An enterprising Minnesota college student who drove to Iowa every weekend to buy hundreds of Krispy Kreme doughnuts that he then sold to his own customers in the Twin Cities area has been warned by the confectionary giant to stop.

There have been no Krispy Kreme stores in Minnesota for 11 years.

Jayson Gonzalez, 21, of Champlin, Minnesota, would drive 270 miles (430 kilometers) to a Krispy Kreme store in Clive, Iowa, pack his car with up to 100 boxes, each carrying 12 doughnuts, then drive back up north to deliver them to customers in Minneapolis-St. Paul.

He charged $17 to $20 per box. He said some of his customers spent nearly $100 each time. Gonzalez said he did not receive a discount from the store in Iowa where he bought the doughnuts.

But less than a week after the St. Paul Pioneer Press reported on his money-making scheme, Gonzalez received a phone call from Krispy Kreme's Nebraska office telling him to stop. The senior studying accounting at Metropolitan State University in St. Paul said he was told his sales created a liability for the North Carolina-based company.

In a statement Sunday night, Krispy Kreme said it's looking into the matter.

Related: Krispy Kreme

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Krispy Kreme doughnuts go into production at the opening of the store at Harrods in London, October, 3, 2003. [The U.S. chain opened its first European outlet in London on Friday.]
Krispy Kreme doughnuts go into production at the opening of the store at Harrods in London, October, 3, 2003. The U.S. chain opened its first European outlet in London on Friday. REUTERS/ David Bebber ASA/JV
Employees tend to the assembly line as doughnuts are baked, fried, and glazed at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee picks up fresh donuts from a conveyor belt at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
Doughnuts are displayed in a case at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
Customers wait inside a Krispy Kreme Doughnuts store to collect on the promotion of a free doughnut to anyone with an "I Voted" sticker on election day in Washington, November 4, 2008. REUTERS/Mitch Dumke (UNITED STATES) US PRESIDENTIAL ELECTION CAMPAIGN 2008 (USA) REUTERS
MIAMI - MAY 17: Glazed Krispy Kreme doughnuts are seen May 17, 2004 in Miami, Florida. Krispy Kreme Doughnuts Inc. last week said that the low-carb diet trend has hurt sales and they now face shareholder lawsuits alleging it misled investors about the direction its business was headed. (Photo by Joe Raedle/Getty Images)
UNITED STATES - MAY 25: Customer Anthoney Golladay and his newly purchased Doughnuts at a Krispy Kreme Doughnut shop in Alexandria, Virginia, May 25, 2004. Krispy Kreme Doughnuts Inc. had its first loss as a public company after closing its Montana Mills business and doughnut-chain sales declined amid the popularity of low-carbohydrate diets. (Photo by Dennis Brack/Bloomberg via Getty Images)
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"We appreciate Jayson's passion for Krispy Kreme and his entrepreneurial spirit as he pursues his education," the statement read.

Gonzalez, also known as "The Donut Guy," would have made his 20th run to Iowa on Saturday. He told his Facebook followers on Thursday that he has been told he has to shut down operations.

"Life happens, and it could be a sign that something else it meant to be," Gonzalez posted.

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Information from: St. Paul Pioneer Press, http://www.twincities.com

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