A Filipino woman was refused entry into a doughnut shop because she wasn't a New Zealand resident.
Hamilton man Christopher Smith and his partner left the city early to get to Auckland in time for the opening of the country's first Krispy Kreme outlet, it has been reported.
The Philippine Embassy in New Zealand is also fuming, likening the company's stance to that of the Klu Klux Klan.
After arriving about 2.30am, the Hamilton couple were shocked to be told by a security guard the woman couldn't get in because she wasn't a Kiwi.
Smith told media the security guard told him "she has to go, she has to go".
The woman had to sit in the car and wait while her partner waited in the 75-strong queue for nearly six hours.
The first 100 people were given a free box of doughnuts, and the first three were given a year's supply.
A Krispy Kreme spokesman told media it was likely the woman was not allowed in because of eligibility rules around winning prizes during the opening.
Smith said they were so excited they barely slept the night before the store's opening, and were gobsmacked at their treatment.
"It's just doughnuts," he reportedly said.
Andrew McGuigan, chief executive officer of Krispy Kreme Australia and New Zealand, told the Herald he was disappointed to cause upset during the store's grand opening.
"We would like to apologise to the individuals involved. We are in the process of reaching out to them to rectify the situation."
McGuigan said when the company ran a competition, they typically applied standard terms and conditions, which stipulated entry was open only to residents of the specific country where the competition is running.
"We understand New Zealand has a wonderful and diverse population. In hindsight, it was a lapse in judgement to apply our standard terms and conditions.
"As with any competition, security was briefed to check identification of all customers in the queue to ensure all competition entries were valid and customers were aware of the terms and conditions. We wouldn't want valued customers queuing for a long period of time, only to be ineligible."
McGuigan said the company celebrated diversity "inside our business and in every community we operate".
"As a brand, we are open and honest and pride ourselves on being a welcoming place where everyone can experience the joy that is Krispy Kreme."
Krispy Kreme's head of marketing for Australia and New Zealand Russell Schulman earlier told media that "someone who is a little upset at the rules is not an incident for us".
"We want to have local people trying it rather than American tourists, which does happen."
However, Schulman accepted Krispy Kreme had no legal right to not allow someone in their store for being a foreigner.
News of the company's stance has angered the Philippine Embassy who lashed out in a post on Facebook overnight.
"So sad ... I USED to love Krispy Kreme ... now they should add one more "K" to their name to reflect their thinking - KKK !!! (As in Klan ...)."
The ambassador then called for a boycott of the company.
However, he later renegged on his suggestion to boycott.