Wisdom Into The Donut Business

Wisdom Into The Donut Business

Donuts, yes Doughnuts? The donut business is more profitable, more fun then ever and the donuts offered are more delicious, more healthy with a universal following. The average cost to make a plain cake donut is .9 cents boasting a 300% markup. Donuts have been reinvented from traditional plain cake varieties to the $3 dollar gourmet artisan donut as decadent as any pastry can offer.

The donut business is one of the few restaurant businesses whereby coffee and barista drinks are associated with “The Donut”. Coffee being the 2nd most profitable drink item in the nation goes hand-and-hand with donuts like peanut butter and jelly (And yes, there is a PJ donut too!). The donut business is a business that can be monetized with related and unrelated comfort and lunch/dinner food items.
Case-in-point: You can visit the local donut shop with the intention of only purchasing a chocolate iced donut, and then, add a mocha cappuccino drink to your order all while pondering if you should have purchased a breakfast and/or lunch sandwich to-go, too?

The traditional donut business is commonly associated with breakfast/lunch sandwiches items and the modern donut business can even boast a complete deli line of sandwiches made with specialty in-house yeast donut bread baked daily.

In one donut business model fried chicken is sold with donuts and the business is a win-win! Donuts are commonly cross and up sold with products similar in flavor(s) to donuts such as ice cream, soda and barista coffee drinks and so much more.

The donut business is able to adapt to current and new business opportunities with the business owner having the ability to easily private into new opportunities and markets by offering specialty themed based donuts for holidays, birthdays, events, festivals and carnivals leaving no opportunity missed to monetize donuts based on person(s) or community special occasions.
What truly makes the donut business special is that donut businesses are historically proven to be recession proof in good and bad economic times. Below is an article written on me 12 years ago about the donut business by Wired publications “Donuts a recession proof business” and now the donut business appears to be covid19 recession proof too.

The donut business is easily scalable compared to most other businesses and commonly starts with 1 retail location with the donut kitchen design to accommodate an increase in donut production when needed to expand donut sales through;

Donut satellite locations

Satellite locations commonly known as cold spots can be opened cost effectively and quickly considering donuts are made off site and then delivered to satellite locations.

1. Mobile donut trailer
The mobile donut trailer is ideal for advertising, branding and promoting the donut business around town. Also used for testing sales channels to determine demand for new satellite locations. Additionally used to sell donuts at carnivals, fairs, festivals and local events.
    2. Donut wholesale orders
These orders will be based on daily contractual accounts.
    3. Specialty donut orders
These orders consist of celebration donut cakes i.e. birthday donuts for parties, weddings, holidays, specialty events.
    4. Carnivals, fairs, festivals and local events and specialty donut lines specifically designed to match local events. 

As you can see the donut business offers an array of ways to monetize donut sales through a multitude of existing markets and truth be told, that’s not all. The donut business is community friendly.

It is traditional for an entire family to venture to the local donut shop for a sweet treat however it is now common to bring the donuts and coffee to customers at there residential homes and businesses. Covid has brought food delivery convenience to the forefront and donut/coffee delivery to your home is just another way to monetize the donut business.

A donut business can meet and exceed any aspiring or successful business entrepreneur goals who wants to enter the 12 billion dollar annual donut market for one is only limited by ones imagination in this business.

Please see related article Monetizing The Donut Business