Yes, the "Hot Now" sign being lit is key to getting the right KK donut. Of course the (F)Atkins diet doesn't have any room for them...
When the first one opened in Austin, there were traffic jams on the US183 frontage road and cops (surprise!) there "directing traffic" until midnight. But, there was no traffic jam at night, only in the morning, and then the cops weren't actually doing anything then either. Now, it's just another donut shop, no more hype...