Location Selection To Start A Donut Shop Business
Assuming you have preplanned the donut business model you wish to implement. The donut business you want to start will be in a high visibility end-cap corner location with a drive thru – In a perfect world”.
Additionally, the donut business ideally will be situated in a residential and commercial area. This is important because the local donut shop can only draw customers from a 7 to 10-mile radius.
Equally important, the donut shop will be situated in an area whereby the “locals” have to run about to complete their errands at local businesses such as Target, Sears and Walmart.
The combination of residential/commercial locations expediently increases built-in clientele for the donut businesses. And this also opens additional avenues of revenue. You may be wondering what I mean by additional avenues of revenue.
I am referring to hosting birthday parties and celebration events for residents of the community. Residents that would adore hosting a birthday party at the local donut shop. But that’s not all, not even close! Imagine offering donut birthday cakes to the special person and their special day. There are many, many to monetize a donut business located in a residential neighborhood.
And lastly, offers a bonus to the business which is a loyal customer base.
Ok, we addressed the retail donut business model however that may not be an option for you due to varies reasons i.e., high rent, lack of retail locations for rent or location not compatible and/or existing donut businesses in place.
Also, you may have other ideas to start a donut shop business. Ok, then let’s address some options for you because the donut business allows you to pivot different aspects of the business.
Consider starting the donut business in an industrial area and deliver the donuts to 1 or multiple satellite locations boasting heavy foot traffic or that special location you want that will not accommodate a 800sq. ft. kitchen but is ideal for starting your donut shop business. Typically, it is cost effective to rent an industrial building over commercial locations with the added benefit of cheaper rents, more sq. footage and industrial buildings always has 3 phase power needed for commercial donut making equipment.
The recipe for success is that you want an industrial location that has a customer base built in to sell enough donuts to cover your rent and ingrediant expenses. In this way you will not siphon the profits derived from the residential satellite locations.
An added benefit to starting a donut shop business in an industrial area is that the business can be licensed through the dept. of algaculture which is cheaper and less hassle than being licensed through the local health department.
Lastly, you can monetize the business by implementing a mobile donut food concession truck to deliver the donuts to the satellite donut shop locations branding the donut business all while delivering the donuts.
All the best!