Selling Your Donut Shop?
Donut Shops have been feeling the effect of the restaurant recession since 2008. Now, COVID19-related restrictions continue to contribute to a decline in affordable food & beverage supplies and finding proper staff to effectively manage customers. If your donut shop offers indoor dining, the necessary upgrades to conform to the restrictions have become so costly many donut shop owners have had to manage the business all on their own. This has added more pressure for the business owners, creating a higher demand for even more of their valuable time and money, and of course, a higher number of donut shops being sold. Over 300,000 food establishments will close just between the years 2020 and 2021.
Donut shop owners take into account the overwhelming tasks associated with the closure before making the final decision to sell their donut shop. WBAR understands how daunting this process can be, and we are here to make it easier on you. We’ll make you a fair offer, pay you cash, and remove everything safely and efficiently.
Whether you are just beginning the tasks of filing proper paperwork and notifying suppliers, employees and customers, or your donut shop is already closed or on the market, WBAR will make you a CASH offer on your donut shop business and can complete the entire process in just days.
Request a FREE valuation today. Our experts will gather some basic information, a few photos, & we’ll help create your tentative asset list which may include:
Refrigeration (Refrigerators, Freezers, Coolers)
Cooking & Processing Equipment (Proofers, Fryers, Ovens, Glazers)
Indoor and Outdoor Chairs, Tables, Booths, Bar, High Chairs, Booster Seats
Mixer, Docker, Blender, Sheeter
Electronic Systems such as Camera, POS, Alarm, Lighting, Sound
Small Wares (Baking Pans, Serving Dishes, Catering Supplies)
Any Other Non-Permanent Assets in the Property
After reviewing the information you will receive a FREE cash offer with NO obligation. Once the offer is accepted our team will immediately begin scheduling your extraction using qualified labor and proper tools and transportation.
Still owe on your equipment? Leases? Multiple owners? Franchise agreements? Outstanding debt?
IT DOESN’T MATTER. We can help. CALL NOW!!
We Know the Donut Shop Business
When opening a new donut shop, owners must consider local trends for their location’s market, and the best possible location to serve the community and maximize profit potential. Most donut shops focus primarily on take-out options, mainly walk-in traffic, and rely on food delivery services like Uber Eats, GrubHub, Postmates or DoorDash for their deliveries as having the added expense of a delivery driver doesn’t always make sense for their business model. Consider offering additional food options or specialty beverages like coffees, teas or lattes. Even offering deli sandwiches for lunch or family-sized dessert or baked good options in a bakery case or deli refrigerator for quick, easy to-go business. Outdoor dining options can increase sales for warmer climate markets and covered outdoor dining helps for those variable weather markets, too. Counter service is most prevalent in donut shops so having a large, clean area with multiple quick-serve options can increase sales. Consider having a countertop merchandiser near the cash register / checkout counter for quick smoothie or specialty drink grab-n-go impulse buys. Many donut shops understand the importance of accessibility for their guests and customers with food allergies such as wheat, nuts, gluten, eggs, dairy, soy, etc. so catering your menu to those needs should be thought of. Offering gourmet donut options and even wedding cakes, custom birthday and graduation cakes, quinceanera cakes, king cakes for mardi gras, anniversary, retirement, celebration of life, rehearsal dinner, holiday meals and the like could increase your presence in your market. Because many grocery store retailers and bakeries offer donuts it is important to find your niche. If your state allows smoking inside or on the patio, consider having a strict non-smoking section available for guests with small children, health or breathing issues, or simply because they would rather utilize that space while eating.
The average cost to open a donut shop in the US is $70,000.00. When opening a brand new donut shop it should be mentioned that you should expect at least 24 months before beginning to see a profit - possibly longer considering higher wages associated with labor shortages, food shortages resulting in increased costs, higher security deposits or lease terms since landlords and owners of properties or shopping malls / strips that rent to restaurateurs have experienced a higher incidence of eviction or court costs or simple business abandonment due to losing money instead of making any profit. In addition, the owner needs to consider whether they will continue their previous employment while awaiting the business to generate enough profit to properly pay them for the many hours they will be putting into the business. Anyone who has ever owned a donut shop or any other type of food establishment knows that working twice as hard for half as much is almost a given, usually working for the simple reward of a business that makes enough money to make up for all of the time and energy they have poured into their family business or franchise. In 2020 there were over 13,000 donut shops in the US including both chain and independent (not part of any franchise or larger chain, independently owned with unique name). The Dutch are often credited with bringing the donut to the US with their olykoeks (“oily cakes”) in the 1800’s, and the hole in the center of the donut appeared in the first half of the 19th Century and allows the donut to cook more evenly. The number one donut shop in America is a place called Dough which is located in Brooklyn, NY and brands itself as a little taste of Latin American culture and tradition in your daily doughnut run..According to Yelp!, Boston, Massachusetts is the US city with the most doughnut shops per capita with about 1 doughnut shop per 2,400 persons. The most famous donut shop in America according to USA Today is Brouchon Bakery in Yountville, California. The largest donut ever made was an American-style jelly donut weighing 3,400 lbs and measuring 184 inches wide and 184 inches tall at the highest (center) point. Every year, in the US alone, over 10,000,000,000 donuts are made. The average glazed donut contains only 220 calories while the often-mistaken-as-healthier bagel with cream cheese averages 450 calories. It is estimated that for every 100 donut shops that open, only 3 will remain open after 5 years, with a whopping 90 of those closing within the first year. If you are considering selling your donut shop, you understand the market. It is best to sell fast - sell NOW - before thousands of other similar restaurants flood the market, devaluing your investment right alongside the daily depreciation factors.
