US doughnut manufacturer, Krispy Kreme, is to open its first franchise in Britain, in Harrods, on September 25.

The new Harrod’s store - the first of its 25 outlets planned for the UK over the next five years - will feature its “doughnut-making theatre”, to tempt passers-by as they watch the doughnuts being made.

The move will fuel competing with the Dunkin’ Donuts group - owned by British drinks giant Allied Domecq - who operate some 5,000 stores in 40 countries, worth £3.8bn.