If you plan to sell strictly cake-style donuts, your initial equipment needs will be much simpler (and less expensive): a shallow fryer, a glazing table, and a batter dispenser are practically all you need to get rolling. Donut Shop Equipment Listĭifferent types of donuts require different kinds of equipment, and the kind of donuts you plan to sell will dictate a lot of these purchases and decisions.
If you have a background in entrepreneurship, baking or pastry (and you’re looking for limitless freedom in terms of the type and variety of products you sell), striking out with an independent venture may be more appropriate for your particular dreams and desires. Many franchise opportunities offer a balance between the benefits of the support of the franchise system with the pride and freedom of independent ownership. Related Reading: 101 Famously Funny Donut Shop Slogans and Taglines Some franchises even help with real estate and construction questions and requirements. In exchange for paying this premium price, you’ll be working with an established brand who will handle much of your marketing for you, serving product shipped from a central supplier that you finish cooking in-house. The franchise fees can be steep, often costing hundreds of thousands of dollars to get started. One of the easiest ways to get started in the donut business, is by buying into a franchise such as Dunkin’ Donuts or Krispy Kreme.
Remember that in a food truck or trailer, space is going to be at a premium, and this may have an impact on the variety and types of donuts you plan to create. Staying mobile also allows you to bring the donuts to the people, where they need them the most consider locations around large office complexes, public parks or waterfront locations, or near hospitals or universities. With the right equipment, most of your initial donut production can be handled right on the truck, with expansion to a commissary kitchen a means for increasing the amount of product you create each day, as demand for your donuts grows. A few tables for customers to sit and eat are nice, but not something you need to devote a lot of square footage to most customers will take their orders to go.įocus on one of two niches for your donut shop’s location: Do you want to be a charming/hipster donut shop, nestled in the heart of Main Street, where casual passers-by happen upon your shop and make an impulse buy? Or would a strip mall location make more sense, where customers short on time can pop in and grab a quick dozen while they’re running other errands? The type of shop you want to create will help dictate a lot of these decisions.ĭonut shops are also a perfect fit for mobile concessionaires interested in jumping into the food truck game. Donuts sell best when they are artfully displayed, so plan on a large counter area for customers to see what you have available that day. You’ll need a few hundred square feet in retail space minimum to accommodate both the production area, and the sales area. Essentially, you’re starting a bakery with a smaller menu that doesn’t offer things like muffins, bagels, and similar goods. For now, the biggest question is where you plan to put your donut business. Unlike outfitting a full-scale commercial kitchen, outfitting a retail store for donut-making requires much less space, though it does have its own equipment considerations (more on this later). Factor in coffee sales, another ridiculously high-margin item, and the donut business may start to make a lot of sense.īut how can smaller-scale food business entrepreneurs, who may not have hundreds of thousands of dollars laying around for franchise fees, buy into the extremely lucrative and ever-expanding donut biz? Here’s our complete guide to getting your donut operation, large or small, off and running:Ĭonsider the location for starting your donut business.
It’s easy to see why the margins on donut production and sales are off the charts, with ingredients costing just a few pennies on a product that can be sold for $2 or more.Ĭustomer buying trends also show an increase in “small-scale luxury” purchases like donuts, and the industry trends toward creativity and gluten-free offerings continue to drive growth in the donut sector.
According to a March 2018 report by IBIS World, the donut industry brings in about 16 billion (with a capital “B”) dollars each year, with large franchise chains like Dunkin’ Donuts, Krispy Kreme, Winchell’s and Tim Horton’s dominating the marketplace. The donut business is booming, and continues to grow year after year.
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