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Donut Shop Business Plan Sample

APR.16, 2018

Do you want to start donut shop business?

Are you planning on starting a donut shop? This is an excellent idea as donut is a common snack that is widely consumed across the entire world. Donuts are the most common snacks and people love them for their great taste. As a result, the donut shop industry is a thriving industry with great potential of good returns. According to statistics, the donut shop industry in U.S. commands an annual revenue of $15 billion. The level of investment group for business plan varies according to the size and infrastructure, but you can be sure to quickly and fully recover your initial startup capital.

Executive Summary

2.1 the business.

The donut shop will be registered under the name Tasty Donut Shop, and will be located in Chinatown, Chicago- Illinois. The donut shop will be owned by John Donald who is an experienced pastry chef.

2.2 Management Team

John Donald who is the owner of the donut shop is an experienced Pastry Chef who was worked in the food service industry for more than twenty years. Before opening a donut shop, John has worked for numerous top-rated hospitality brands across the United States.

2.3 Customer Focus

Tasty Donut Shop intends to set up in a busy strategic location and offer customers various types of donuts and pastries. Customers will be drawn from various social, religious and cultural backgrounds.

2.4 Business Target

Tasty Donut Shop intends to offer unique and mouthwatering donuts which are appealing to customers looking for a donut shop that satisfies their taste buds.

Company Summary

3.1 company owner.

John Donald is an experienced and award winning pastry chef who has had an incredibly successful career. John has worked in major international hotels and popular US chain of restaurants throughout his career.

3.2 Aim of Starting the Business

After having attained major career achievements, John considered starting a mini donut business as he has always wanted to extend his skills into entrepreneurship. With his immense experience, he knew he would adequately address market needs.

3.3 How the Business will be Started

As an experienced pastry chef, Donald understands the technical aspects associated with starting a donut shop business. For the financial roadmap, he has engaged the services of finance experts to come up with a detailed financial plan. The following is a financial analysis for Tasty Donut Shop.

Services for Customers

Tasty Donut Shop is keen to uniquely approach the market and provide tasty snacks that will charm various types of customers. As part of how to start a donut business, the donut shop will offer the following services .

• Sell different types of tasty donuts and pastries made from a rich menu selection
• Offer different types of soft drinks such as soda, bottled water, milkshake and smoothies
• Offer freshly brewed coffee and teas
• Sell assorted snacks i.e. burgers and sandwiches as well as other mouthwatering desserts.

Marketing Analysis of Donut Shop Business

For Tasty Donut shop to succeed in the market, a comprehensive market analysis was done to identify what areas of the donut shop business plan need to be focused on to reach out to potential customers. In this business plan , the donut business has come up with a strategy it intends to use to work towards achieving its goals.

Considering the increasing number of people eating donuts, there’s definitely a vibrant market waiting to be tapped.

5.1 Market Segmentation

Everyone loves donuts and for this reason, customer demographics are vast. The donut shop intends to come up with a sustainable marketing plan that will help the business to attract more customers. Chinatown is a popular Chicago neighborhood famous for its unique architecture and a lively dining culture. Being an area with a large population and high pedestrian traffic, this donut coffee shop business plan intends to reach out to the following customers.

5.1.1 Adults

Immigration business plan.

According to sources, U.S. adults are the highest consumers of donuts and other snacks. Anyone above the age of 18 years is a potential customer. The middle class and upper class working population are greatly attracted to donuts, and hardly a day passes without eating their favorite donuts. For Tasty Donut Shop, this is a lucrative customer segment because working adults have an income and therefore, command a higher purchasing power. The business intends to rely on its creativity and uniqueness in its range of products to offer the best quality donuts and snacks. This will give Tasty Donut Shop a competitive advantage over other donut shops in the vicinity.

5.1.2 Children

Children are major consumers of donuts and constitute a major market segment that Tasty Donut Shop intends to focus on. In this donut shop business plan sample, the business intends to introduce a menu with special kids donuts to attract children to the facility. In addition, the business will regularly be adorned with kids themes and special offers to entice children who cannot resist the allure of delicious donuts.

5.1.3 Students

With a high number of schools and educational institutions within the vicinity, Tasty Donut has a great chance of benefitting from high student populations to improve revenue margins. Special offers targeting students will go a long way in building long lasting relationships with students.

5.1.4 Corporates

Corporates require donuts for various purposes such as office staff parties, product launches and corporate gifts. Chicago is a top business and financial hub with many corporate establishments. Tasty Donut Shop is expected to leverage on the vibrant corporate environment to sell corporate donuts.

5.2 Business Target

Tasty Donut Shop is setting up shop in a strategic location with a many restaurants, coffee shops and snack bars. Chinatown is an area frequented by many people and high pedestrian traffic. Therefore, the strategic location of the donut shop will be of great help in driving more revenue. This start up donut business plan aims to provide direction on how the business will attain its goals.

Initial startup capital has already been set aside and there is hope the donut shop will generate sufficient revenue and profits to recover the initial capital. According to this donut store business plan , Tasty Donut Shop projects 15-20% annual growth in sales for the first three years.

5.3 Product Pricing

Great service.

Great service. Good turnaround time and quality work. Thanks!

When planning on starting a donut business, it’s wise to come up with a sound business development strategy. John Donald has worked closely with experts to come up with an effective marketing strategy that will propel business growth. The following is a sales strategy for Tasty Donut Shop.

6.1 Competitive Analysis

Tasty Donut Shop is relying on a creative and unique market entry approach to ensure clients get the best quality and tasty snacks. There are many donut shops in Chinatown, Chicago and the business expects tough competition.

6.2 Sales Strategy

For Tasty Donut Shop to realize its set targets, the following strategy has been proposed for how to open a donut shop business and market the new business effectively.

• Create awareness about the donut shop by distributing introductory letters and brochures to targeted customer groups
• Place advertisements in local media channels such as community newspapers, radio and television
• Incorporate digital social media advertising platforms such as Facebook, Twitter and Instagram
• Design a simple but search engine friendly website to establish a strong online presence
• Organize roadshows especially in areas where customers are targeted to promote the new business
• Offer exciting introductory offers and discounts on various types of snacks to attract new customers to the donut shop
• Become a member of local food business local associations to expand the business network and scout for new markets
• List the donut shop on local business directories
• Have a much publicized official welcoming party to advertise the business

6.3 Sales Forecast

Tasty Donut Shop has put in place a business sales strategy to help the business attain its financial goals. Below is a sales forecast for the donut shop.

Personnel Plan

Tasty Donut Shop is engaged in providing top-notch products in order to fully meet customer expectations. When planning how to start a donut shop business, a good personnel plan is paramount to effectively handle business operations.

7.1 Personnel Plan

The donut shop is owned by John Donald who will be the Shop Manager for the business. The business has plans to hire the following members of staff to work in various departments.

• Assistant Manager
• Two Pastry Chefs
• One Admin and Customer Care Executive
• One Marketing Executive
• One Cashier
• One Cleaner

Successful applicants will be thoroughly trained to familiarize themselves with business procedures.

7.2 Average Staff Salaries

Tasty Donut Shop intends to pay the following average annual salaries for its staff in the first three years since opening.

Financial Plan

Tasty Donut Shop has come up with a financial plan that will guide the business to prosperity. John Donald has rollout out how to start a donut shop using his personal savings and funds contributed from two investors. Additionally, a loan will be borrowed to cater for the budget deficit.

Below is key financial data for Tasty Donut Shop.

8.1 Important Assumptions

Financial forecast for Tasty Donut Shop will be based on the following assumptions.

8.2 Brake-even Analysis

Tasty Donut Shop Brake-even Analysis is shown in the graph below.

8.3 Projected Profit and Loss

Profit and Loss Information for Tasty Donut Shop computed on an annual and monthly basis is shown below.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

Profit and Loss Analysis for Tasty Donut Shop is shown below.

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash received, subtotal cash spent on operations, subtotal cash from operations and subtotal cash spent.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Tasty Donut Shop that indicates assets, capital, liabilities, long term assets and current liabilities.

8.6 Business Ratios

Tasty Donut Shop Business Net Worth, Ratio Analysis and Business Ratios are shown below.

Download Donut Shop Business Plan Sample in pdf

Professional writers OGS capital specialized also on a theme such as professional brewery business plans , opening a bubble tea shop business plan , business plan coffee shop , butchery business startup , gourmet food business plan , how to open sandwich shop business and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Write a Business Plan for a Donut Shop: Complete Guide

• January 3, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your donut shop, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your donut shop . Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a donut shop?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for a donut shop?

Provide a precise and high-level summary of every section that you have included in the business plan of your donut shop business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your donut shop, where it is located, the products you will sell, and the pricing strategy you want to implement. Mention what sets you apart from other businesses. For example, the area where you want to operate may have counter-only donut shops but there is enough demand for dine-in donut shops. You may want to fill in that gap.
• Market analysis : summarise the market where you will operate and provide a brief about your target market , target audience, spending capability, etc. Also give certain data points about the donut shop industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc.
• People : introduce your donut shop’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Donut Shop Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Donut Shop Business Overview

In this segment of the business plan, you will provide details about the donut shop you want to open.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

• What is the rationale behind your opening a donut shop today?
• Where will you open your donut shop and why did you select that location?
• What type of food products will you sell through your donut shop, apart from donuts themselves (you may offer tea, coffee, other non-alcoholic beverages, snacks, etc.)?
• Will you offer certain specialized donut recipes that no one else offers?
• Will you have a sit-in area or is this takeaway only?
• What will be your pricing strategy and why?
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting a donut shop today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have worked as a pastry chef or a bakery manager in of the leading donut businesses in the country for a decade.

Is there a certain problem (or perhaps, a set of problems) that your donut shop will try to solve when it comes into existence? For example, the area where you want to operate may not have a full-service donut shop, or maybe, you will be the first to offer experimental donuts.

But that’s not all! The market must be suitable for a business to exist and thrive. For instance, if you are trying to open an experimental donut shop where people prefer the classics and aren’t open to experimentation, the business may not succeed. 

Similarly, if you want to open a donut shop that offers pricey food in a low-income neighborhood, it may not be a very wise idea. People in such areas will rather go for cheaper alternatives than pricey products made with all-natural and organic ingredients.

The rationale behind your project must be backed up by a thorough analysis of the industry in the area where you plan to open your donut shop. This is what we will cover under Market Overview further below.

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your donut shop. For example:

• Will you buy and remodel an existing donut shop, or will you have one built from the scratch?
• Where will your donut shop be located, and why did you select that location?
• Is this an independent or a franchise donut shop?
• What type of donut shop will you open (sit-in, takeout, truck, etc.)?
• What type of foods will you focus on?
• How will you price your food items and why?

What are the different types of donut shops?

Donut shops can have different formats. If you are focusing on a specific format or if you want to combine multiple formats in one, describe that. Here is a quick list of usual formats for donut shops:

• Donut bakery: they are no-frills donut shops where you get the classic flavors
• Experimental donut shops: these are the ones that will go for experimental donuts with creative toppings, flavors, and fillings
• Full-service donut shops : these can be classic or experimental donut shops with a dine-in setup. Apart from donuts, they can also offer other food and beverages
• Counter-only or takeout donut shops : these shops will not have any sitting arrangement. Customers need to purchase their products at the counter and leave. They may sell classic or experimental donuts along with other food items
• Donut trucks : these are essentially food trucks that sell donuts. Again, they too may sell experimental or classic donuts

You may go for any format. However, you are free to select a multi-format model such as a full-service donut shop plus a truck, or a counter-only donut shop plus a truck.

No matter what you select, you must ensure that there is enough demand for the type of donut shop you want to open and the type of food you want to offer.

c) Products

As a donut shop, you will be focusing on donuts. However, it is not necessary to stick to a single type of product. You can sell sandwiches, muffins, smoothies, etc.

Usually, donut shops have a limited menu and hence, you can include it in the business plan. 

However, if there are too many products (for example, many types of donuts), you must include a sample menu highlighting the signature offerings of your business.

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because you may be using all-natural and organic ingredients and raw materials. 

Similarly, you can also charge higher because all donuts are prepared in-house instead of factory-made donuts that are mass produced.

Again, you may decide to charge lower for certain items than your competitors because the scale of your operations allows you to acquire discounted raw materials and you can pass over some profits to your customers in the form of a lower price range.

Pricing table

While it may not be possible to provide a proper pricing table for all products that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

You can provide an average price based on categories. For instance, you can do something like this:

• Individual donut: $1.90 – $2.50
• 4x donuts: $5.90 – $7.90
• 12x donuts: $15.90 – $22.90
• Coffee: $1.90 – $5.50
• Other drinks: $3.10 – $5.00

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability: they will tie your pricing strategy with your financial projections later on.

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Donut Shop Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if you are in a location where people prefer to eat classics over experimental donuts, trying to push experimental donuts will not help. 

Similarly, if people prefer takeaway-style shops, opening a dine-in-style donut shop will only increase your operational expenses and lead to losses.

Therefore, you must cover here 3 important areas:

• Industry Size & Growth : how big is the donut shop industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition Overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer Analysis : who is your target audience? What type of donuts and related food products will you sell? What kind of donut shops do they prefer? What type of donuts do they prefer? What is their average bill size per visit? How frequently do they visit a donut shop?

a) Donut Shop Industry Size & Growth

How big is the donut shop industry in the us.

According to IBISWorld , the donut shop market size in the US in 2022 is estimated to be $7.5 billion. The market grew at a CAGR of 0.8% from 2017-2022.

Moreover, there were approximately 11,000 donut stores in the US in 2022: that’s an average annual turnover of $680,000 per store..!

How big is the donut shop industry in your area?

After getting a clear picture of the donut shop industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business.

Here is an example of how to do it:

We already know the average annual turnover per donut shop is $680,000. Therefore, if the location where you will operate has a total of 12 donut shops, the donut shop industry in the area is worth about $8.1 million.

How fast is the donut shop industry growing in your area?

We know the US donut shop industry has increased by 0.8% from 2017 to 2022. But what about the area where you want to open your donut shop?

US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the donut shop industry where you want to open your store.

For example, the industry might be growing in the US, but declining in your region for a number of reasons (businesses shutting down due to losses, etc.).

As you likely won’t find this information online, you can instead rely on the number of donut shops in the location to calculate the average growth rate of the industry in your area.

For example, if the region had only 10 donut shops in 2019 and 12 in 2022, you can assume that the average annual growth rate of the donut shop industry in your area is about 6%, which is higher than the US average.

b) Donut Store Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their business model, the products they sell, their marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, you may consider physically visiting your competitors without revealing your business intentions) and create a comparative table summarizing their service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

Donut Shop SWOT analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 10 years of pastry chef experience in a leading donut chain in the US; Baking and Pastry Arts Degree from a reputed college, a team of highly experienced members
• Weaknesses : Startup cost, no initial brand reputation
• Opportunities : Selected location is a highly trafficked part of the town; surrounding businesses that often order donuts from the nearby stores; nearby schools & universities with students, teachers, and faculty often flocking to donut shops
• Threats : Big retailers and wholesalers like Hank’s Donut and Donut Depot are opening new company stores and franchise stores

c) Customer analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

• Percentage of children, teens, and adults and their preferences towards types of donuts
• Average spend
• Frequency of donut purchase
• Type of donut shop they prefer
• Other foods that they order along with donuts

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Donut Shop Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

What is your Unique Selling Proposition (USP)?

• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do donut shops use?

A few marketing channels that donut shop businesses typically use are:

• Signage & billboards
• Social media
• Opening events
• Print media (newspaper, flyers, etc.)
• Partnerships with events (competitions, concerts, etc.)

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing may lead to investors losing confidence.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Ingredients : you may use all-natural and homemade ingredients 
• Uniqueness : donuts may be made by a popular pastry chef who uses unique ingredients to make the donuts fluffier and moister
• Pricing : you may sell premium artisanal donuts at a competitive price that no other competitor offers
• Location : your store may be located on a busy street or next to a corporate center or a school for example

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your donut shop business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the donut shop you are proposing. If they have specialized training and experience (such as a Baking and Pastry Arts Degree, pastry chef experience in a reputed brand, a degree in business and supply chain management, etc.), add that information.

Organization Structure

Even if you haven’t already hired a pastry chef, bakery managers, shift leaders, serving staff, cooks, bakers, cashiers, and other relevant staff members, you must provide a chart of the organizational structure defining hierarchy and reporting lines.

Of course, the number of employees and their roles will vary greatly depending on the number of shops you operate, whether your donut shop is independent of part of a franchise, and the concept (sit-in vs. takeaway only).

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a donut shop.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your donut shop is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new store, add a new location to your donut shop chain, etc.)
• The 5-year financial projections of your donut shop(s)

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a donut shop, startup costs are all the expenses you incur before you start making sales. These expenses typically are:

• The acquisition of the real estate (if you buy)
• The lease deposit (if you rent)
• The renovation and equipment costs
• License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the number of stores you plan to open, their size, the quality of the design and equipment, etc.

For example, it costs anywhere from $43,700 – $89,200 to open a casual 1,500 sq. ft. donut shop in the US .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a donut shop, read our article here .

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your donut shop.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers / orders over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to renovate / build your store, furniture and equipment, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your donut shop. Now that we have explained what your business model is, what type of products you sell, how you get customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for a donut shop should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the real estate and renovations?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Donut Shop Business Plan Template

Written by Dave Lavinsky

Donut Shop Business Plan

You’ve come to the right place to create your Donut Shop business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their donut shops.

Below is a Donut Shop business plan example to help you create your own donut business plan.

Executive Summary

Business overview.

Green Star Donuts is a new, unique, local donut establishment that will serve freshly made specialized donuts to the community of Watertown, MA. Our focus is on using natural ingredients because donuts shouldn’t be highly processed to be enjoyable. We will make and serve all kinds of donuts, from frosted with sprinkles to Boston cream. No matter the time of day or year, our customers are always welcome to come in and enjoy a diverse selection of natural, handcrafted donut treats.

Green Star Donuts is owned by Frederick Davis, an award-winning pastry chef that has perfected his donut recipes over the years. After working for several other establishments and restaurants, he is ready to utilize his knowledge and craft to create the perfect donuts for his own business. He has come back to his hometown community of Watertown, MA, to establish his business.

Product Offering

Green Star Donuts will sell a variety of donuts, all expertly crafted in unique flavors. All products will be made using only fresh and all-natural ingredients and sugar. Because each donut is made fresh every day, they will not include any chemicals or preservatives.

Green Star Donuts offers a large menu of various donut offerings for customers to enjoy year-round. The menu will change with each season, offering flavors and themes that match the time of year. However, there will be many donuts offered year-round as well. Some donuts we will sell include:

• Maple and chocolate bar
• Boston creme
• Chocolate glaze
• Frosted with sprinkles
• Jelly-filled
• Donut twists
• Donut holes

Green Star Donuts will also offer soda, water, and coffee beverages. Coffee beverages will include espresso, lattes, mochas, and macchiatos.

Customer Focus

Green Star Donuts will serve the community of Watertown, MA. Watertown is a small city located outside of Boston and is home to many families, individuals, and businesses. We will serve anyone living or working in this area who needs donuts and coffee to help them start their day.

Management Team

Green Star Donuts will be solely owned and operated by Frederick Davis. Frederick was trained at the Culinary Institute of America and quickly became an acclaimed pastry chef working in some of the most prestigious restaurants in the United States. Since then, he has been working at five-star restaurant establishments as a pastry chef for over ten years. During this time, he has won multitudes of awards, been featured in culinary publications, and has been a widely sought pastry chef all over the country. Frederick has perfected his donut recipes and is ready to come back to his hometown of Watertown, MA, to proudly serve the local community.

Frederick will employ a staff of full-time and part-time employees to assist him with the daily donut preparation, customer service, inventory, marketing, and cleanliness of the business.

Success Factors

Green Star Donuts will be able to achieve success by offering the following competitive advantages:

• All-natural and homemade ingredients: Green Star’s competitors are large franchises that use ingredients filled with trans fats to preserve freshness. Green Star’s donuts are made fresh, in-store, using all-natural ingredients and natural sugar.
• Location: Green Star Donuts will be located in a highly trafficked, prime location in a busy intersection of town.
• Founder: Green Star’s donuts are made by a pastry chef who has perfected his recipe. Frederick Davis has been a celebrity pastry chef for years and has created and crafted thousands of perfect donuts in that time. His popularity will be invaluable to the business.
• Pricing: Green Star Donuts will offer premium artisanal donuts at a price point that is competitive with other establishments.

Financial Highlights

Green Star Donuts is seeking $300,000 in funding to launch its donut shop. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Store design/renovation: $100,000
• Equipment, ingredients, and supplies: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing and advertising: $30,000
• Working capital: $20,000

The following graph below outlines the pro forma financial projections for Green Star Donuts.

Company Overview

Who is green star donuts, green star donuts history.

After consulting with an attorney and CPA on the legal and financial obligations of running a donut shop, Frederick Davis incorporated Green Star Donuts as an S-Corporation on April 10, 2022.

Soon after, Frederick identified a 2,000-square-foot retail space already outfitted with a small kitchen and a drive-thru to use for the shop. The space was a former fast food chain that recently shut down. Green Star Donuts will make small design changes to fit its brand image and donut preparation requirements.

Since incorporation, the company has achieved the following milestones:

• Found retail location and signed Letter of Intent to lease it
• Decided on the company name and developed the logo and website
• Developed the donut menu
• Determined the equipment and inventory requirements
• Began recruiting key employees that will be integral in the operation of the donut shop

Green Star Donuts Products

Industry analysis.

According to IBISWorld, the donut industry was valued at $8.7 billion USD in 2022 and is continuing to grow rapidly. Since 2017, the industry has grown at a rate of 6.5% per year. According to Dataintelo, the industry will continue to grow at a compound annual growth rate of 5.4% until 2030.

This growth is primarily due to the consistent popularity of donuts. For decades, they have been a popular breakfast item and treat for workers, families, and groups. Donuts are also associated with one of America’s favorite beverages- coffee. Customers can hardly resist the temptation when both of these products are sold together.

Donuts are also one of the food items that can be experimented with to keep a continuous appeal. From sprinkles and frosting to unique flavor pairings, there are no creative limits when it comes to donuts. In recent years, donut shops have become innovative with their offerings, which keeps their customers coming back.

Donuts are also a cheap treat, which makes the industry fairly recession-proof. When families want to treat themselves, they can often get a dozen donuts for less than $15. This keeps the demand and popularity for donuts consistently high, which keeps the industry going no matter the state of the economy.

Customer Analysis

Demographic profile of target market.

Green Star Donuts will serve the residents and workers of Watertown, MA, and its surrounding areas. Watertown is full of families and workers who are looking for delicious treats to begin their morning with. Furthermore, the town is home to many schools, churches, and similar establishments looking for local treats and breakfast options for special events.

The precise demographics of Watertown are as follows:

Customer Segmentation

Green Star will primarily target the following customer profiles:

• Nearby schools
• Nearby offices/office workers

Competitive Analysis

Direct and indirect competitors.

Green Star Donuts will face competition from other companies with similar business profiles. A description of each competitor company is below.

Hank’s Donuts

Hank’s Donuts is an international donut and coffee retailer. The company has over 7,600 points of distribution in the United States and is one of the largest coffee and baked goods chains in the world. The chain is a market leader in the coffee, donut, bagel, muffin, and breakfast sandwich categories. According to the company website, it sells more than one billion cups of coffee each year.

About 85% of Hank’s Donut’s points of distribution are traditional restaurants, consisting of stand-alone locations and those contained in gas and convenience locations. In addition, the company has full- and self-service kiosks in grocery stores, hospitals, airports, offices, and other locations with small retail footprints.

Donut Depot

Founded in 1937, Donut Depot is a leading branded retailer and wholesaler of donuts. The company produces more than 20 varieties of donuts, along with a broad array of coffees and other beverages. Donut Depot generates revenue from company-owned stores, domestic franchise stores, and international franchise stores. The company has 95 company stores, 159 domestic franchise stores, and 574 international franchise stores in 21 countries.

As well as selling products through its retail outlets, the company also wholesales branded donuts and packaged sweets to a variety of retail customers, including convenience stores, grocery stores, and other food service establishments.

Dunkin’ Donuts

Established in 1948, Dunkin’ Donuts has been the king of the donut industry in the United States, especially in the Boston, MA, area. Dunkin’ offers a huge variety of donuts, pastries, and beverages, appealing to all demographics that walk into its stores. And with a rewards program and frequent promotions, there are plenty of incentives to get customers coming back time and time again.

Just as with Donut Dept, Dunkin’ sells limited donut and coffee items wholesale in grocery stores and other retail establishments. However, they are most famous for their donut shops, which can be found in all corners of the world.

Competitive Advantage

Green Star Donuts has several advantages over its competition. Those advantages include:

Marketing Plan

Brand & value proposition.

The Green Star Donuts brand will focus on the company’s unique value proposition:

• Offering unique, freshly made donuts in a variety of delicious flavors.
• Located in a prime retail location in a highly trafficked part of town.
• Offering the highest quality donuts at competitive prices.

Promotions Strategy

The promotions strategy for Green Star Donuts is as follows:

Social Media

Green Star Donuts will be active on social media and use targeted social media advertising to attract its most likely customers. The company will frequently post upcoming specials, events, and seasonal featured flavors.

Green Star Donuts will have an informative and attractive website that will feature professional photos of the shop, its donuts, store hours, address, and contact information. It will also use SEO to constantly stay at the top of search engines for anyone searching for donut shops near them.

Green Star Donuts will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The billboard will have an eye-catching picture of its donuts that is sure to grab everyone’s attention.

Pre-Opening Events

Green Star Donuts will organize a pre-opening event designed for prospective customers, local merchants, and press contacts. The event will be fun and inviting in order to create awareness for the company. Attendees will be able to sample the different flavors of donuts.

Green Star Donuts’ pricing will be moderate so customers feel they receive great value when purchasing its products.

Operations Plan

The following will be the operations plan for Green Star Donuts.

Operation Functions:

• Frederick Davis will be the Store Manager and Owner of the company. In addition to running the operations of the company, he will also help out with making and selling donuts on a day-to-day business.
• Frederick will be assisted by Kelly Johnson, who will work as the Assistant Manager. She will run the store when Frederick is unavailable and help with some of the operations of the business.
• Frederick will also hire an Administrative Assistant to help with the administrative and operations sides of the business. They will also help with some of the marketing efforts, such as posting to social media.
• Frederick will hire multiple bakers to make and decorate the donuts for sale.
• Frederick will also hire several cashiers to help sell the donuts and make coffee beverages for customers.

Milestones:

Green Star Donuts will have the following milestones completed in the next six months.

5/1/202X – Finalize the lease

6/1/202X – Finish building and designing the store

7/1/202X – Kickoff promotional campaign

8/1/202X – Hire and train staff

9/1/202X – Officially open Green Star Donuts

10/1/202X – Break even

Financial Plan

Key revenue & costs.

The revenues for Green Star Donuts will come from the sales of the homemade donuts that will be offered to its customers. The company will have dine-in and take-out options for its customers.

The major costs for the company will be sourcing the ingredients and production of the donuts. Other cost drivers will be the salaries of the staff, company overhead, and advertising costs.

Funding Requirements and Use of Funds

• Equipment and supplies: $50,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Number of customers per day: 100
• Average order total: $10
• Yearly lease: $50,000

Financial Projections

Income statement, balance sheet, cash flow statement, donut shop business plan faqs, what is a donut shop business plan.

A donut shop business plan is a plan to start and/or grow your donut shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Donut Shop business plan using our Donut Shop Business Plan Template here .

What are the Main Types of Donut Shops?

There are a number of different kinds of donut shops , some examples include: Donut bakery, Full-service donut shop, and Experimental donut shop.

How Do You Get Funding for Your Donut Shop Business Plan?

Donut Shops are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a donut shop and a mini donut business plan.

What are the Steps To Start a Donut Shop Business?

Starting a donut shop business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Donut Shop Business Plan - The first step in starting a business is to create a detailed donut shop business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your donut shop business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your donut shop business is in compliance with local laws.

3. Register Your Donut Shop Business - Once you have chosen a legal structure, the next step is to register your donut shop business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your donut shop business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Donut Shop Equipment & Supplies - In order to start your donut shop business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your donut shop business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful donut shop business:

• How to Open a Donut Shop Business

Other Helpful Business Plan Templates

Franchise Business Plan Template Coffee Shop Business Plan Template Bakery Business Plan Template

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• Small Business Spotlight: Mochinut

It’s not every day that two computer science graduates from UNC walk away from successful corporate careers to open up a novelty dessert shop, but that is exactly what cousins Peter Zheng and Jacky Zhao did when they opened Mochinut this past spring.

“I worked at my corporate job for a year. During that time, entrepreneurship was always at the back of my mind,” said Zheng. “Becoming an entrepreneur was a goal of mine because I wanted to build something that resonated with me and consisted of my vision. My partner is Jacky, and he was also a computer science graduate from UNC. At the time, he was a software engineer, but he was also open to the idea of starting Mochinut.”

Zheng and Zhao’s taste for something new has definitely hit the mark. During their grand opening in March, they were completely sold out by 5 p.m., as people couldn’t seem to get enough of this unique twist on traditional donuts. We recently spoke with Zheng to learn more about their unique and flavorful offerings.

What is a mochi donut, and what makes them so unique?

A mochi donut is a combination of Japanese mochi and an American donut. They have a chewier texture compared to a normal donut. The unique eight-balled shape makes it easier to pull apart and share with friends. As for the flavoring, it’s limited only by your creativity. The mochi donut can be dipped in icing, chocolates, sugars, or custards, and designed with different toppings.

Mochinut offers dine-in or takeout.

When did Mochinut Cary first open, and what was the inspiration behind its opening?

Down in Atlanta, I got my first taste of mochi donuts and Korean corn dogs. The concept was unique, so I knew Cary would be the perfect spot to introduce it. We officially opened on March 18.

Why do you think mochi donuts have gotten so popular?

Mochi donuts have gained popularity the past couple of years due to its trendiness on social media. The designs on the donuts are often vibrant and very photogenic. Mochi donuts tend to not be as sweet as normal donuts, which also contributes to its popularity.

Describe your other menu offerings and what makes them special!

Other products offered at Mochinut are Korean corn dogs and bubble tea. Our corn dogs have a wide variety of toppings such as potato, ramen, cereal, and Hot Cheetos. Our drink menu currently includes 12 bubble teas, but we will expand the menu to fruit teas and layered drinks soon! Mochinut is the perfect spot to grab a quick snack or indulge in a guilty pleasure after a long week.

Grab and go! Vicky Tang boxes mochi donuts for hungry customers.

What is the most popular mochinut flavor? What is your personal favorite?

Based on the past month we’ve been open, the most popular flavor is surprisingly churro. My personal favorite is the strawberry shortcake.

Describe your experience as a business owner!

Being a business owner has been a very rewarding journey. As an avid learner, the amount of insight that I gained in the different fields is priceless. From construction to marketing to accounting, I am privileged to have learned so much along the way. Now that we are open, I love seeing the enjoyment people get when trying our products. This motivates our team to brainstorm new designs and unique flavors for the community to try.

The hardest part of being a business owner is juggling multiple things at once. Whether it is inventory, management, or other issues, we strive to be on top of everything. Many mistakes have been made, but our team has constantly worked to improve the business in any way that we can.

Anything else you’d like to add?

I want to thank the Mochinut team members. Every single member is incredible, and they have constantly made Mochinut better!

@mochinut_cary

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Donut Shop Business Plan Template

Written by Dave Lavinsky

Donut Shop Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their donut shops. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a donut shop business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your donut business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a donut shop, or grow your existing donut shop, you need a donut shop business plan. A business plan will help you raise funding, if needed, and plan out the growth of your donut shop in order to improve your chances of success. Your donut shop business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Donut Shop Businesses

With regards to funding, the main sources of funding for a donut shop are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a donut shop is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a donut business. They might consider funding a donut business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a donut shop.

If you want to start a donut business or expand your current one, you need a business plan. Below we detail what should be included in each section of the business plan for you donut shop.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of donut shop you are operating and the status. For example, are you a startup, do you have a donut shop that you would like to grow, or are you operating a donut shop franchise?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the donut shop industry. Discuss the type of donut shop you are operating. Detail your direct competitors. Give an overview of your potential customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of donut shop you are operating.

For example, you might operate one of the following types of donut shops:

• Donut bakery : this type of no frills donut business focuses solely on making donuts and serving classic donut flavors. 
• Full-service donut shop : this type of donut business serves donuts alongside complementary beverage and food items. 
• Experimental donut shop : this type of donut business creates fun and experimental donuts with creative filling, toppings, and flavors. 

In addition to explaining the type of donut business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of donuts sold, number of customers served, number of customers who have joined your loyalty program, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the donut industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the donut shop industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your donut business plan:

• How big is the donut industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your donut shop? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your donut shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: children, parents, commuters, and bakers. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of donut shop business you operate. Clearly, children would want different service options and would respond to different marketing promotions than parents, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the potential customers you seek to serve. Because most donut shops primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other donut shops. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, convenience stores, and some coffee shops. You need to mention such competition to show you understand that not everyone who wants to buy donuts will go to a donut shop.

With regards to direct competition, you want to describe the other donut shops with which you compete. Most likely, your direct competitors will be donut shops located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of donuts do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide food and beverages that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a donut shop business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of donut shop business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to the donut shop, will you provide adequate seating, a family-friendly environment, or self-serve toppings?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your donut shop. Document your location and mention how the location will impact your success. For example, is your donut shop business located near commuter streets, in a food plaza, near schools, etc. Discuss how your location might provide a steady stream of customers. 

Promotions : The final part of your donut shop marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your donut shop, including making dough, baking, organizing donuts for display, and ringing up customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th donut, or when you hope to reach $50,000 in revenue. It could also be when you expect to expand your facility or launch in a new location.  

Management Team

To demonstrate your donut shop’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing donut shops. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing donut shops or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 70% of your donuts daily or 85%? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

: Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your donut shop, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a coffee shop approached you with a $25,000 contract to provide donuts to their local coffee shop. Let’s further assume the contract would cost you $25,000 to fulfill in terms of increased staffing costs. Well, in most cases, you would have to pay that $25,000 now for employee salaries, ingredients, additional machinery, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a donut shop:

• Location build-out including design fees, construction, etc.
• Cost of equipment like specialty fryers, proofers, cooling racks, and refrigerators
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease or a blueprint of your donut shop retail location.  

Putting together a business plan for your own donut shop business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the donut industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful donut shop.  

Donut Shop Business Plan FAQs

What is the easiest way to complete my donut shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Donut Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of donut shop you are operating and the status; for example, are you a startup, do you have a donut shop that you would like to grow, or are you operating a chain of donut shops?

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All About Mochi Donuts

Jenna Wilson

Posted on June 28, 2021

How Japanese Mister Donut’s Pon de Ring Are Capturing Hearts and Palates in the West

Donuts are as American as apple pie, but somehow, an American donut chain has been reigning supreme for decades in Japan: Mister Donut. Selling everything from donuts, to dim sum (for real!), to pasta, this chain is always capturing the media spotlight with their delicious creations, most famously: Pon de Ring donuts.

The Donut Brothers

Mister Donut was founded way back in 1956 in Boston, Massachusetts by Harry Winokur. Donuts seem to have been a family tradition since Harry’s brother-in-law William Rosenberg also founded his own franchise: Dunkin’ Donuts. Mister Donut was instantly popular and quickly became a successful franchise across the U.S.

In 1971, the franchise expanded into Japan, with the first outlet in Minoh, Osaka. However, the products needed to be adjusted before entering the Japanese market.

Donuts were first introduced to Japan after the Second World War (1939-1945) via American soldiers stationed in Okinawa, but initially were considered a dessert for children, lacking the elegance and sophistication of wagashi , Japanese desserts. Because of this, changes were made to the Mister Donut recipes and presentation in order to appeal to the Japanese customer base. It was a success and the franchise quickly became a sensation with outlets quickly popping up across the country.

Interested in Japanese sweets? Experience delightful tastes & textures from  Sakuraco  – a teatime experience sent straight from Japan to your home.

Pon de Ring Donuts

The titular item at Mister Donut, these fun desserts have an unclear origin story , involving Japan, Hawaii and Brazil. Possibly inspired by poi mochi, invented in Hawaii in 1992 and made with a base of taro and mochi, Pon de Ring donuts were first introduced in 2003. The name is a spin on “Pao de queijio”, a Brazilian cheese bread made with tapioca powder with a similar appearance.

View this post on Instagram A post shared by ミスタードーナツ (@misterdonut_jp)

Although the first release of Pon de Ring donuts were only offered with a simple sugar glaze, Mister Donut wasted no time experimenting with new flavors. Along with limited-edition and seasonal flavors, the now classic options for Pon de Ring donuts include:

Pon de Ring: a simple sugar glaze

Pon de Kokuto: dusted with brown sugar

Pon de Strawberry: with strawberry glaze

Pon de Chocolat: made with chocolate dough

They also created a cream-filled version called Pon de Angel that has since become a staple at all Mister Donut locations.

What are they made of?

Yes, they are often referred to as “mochi donuts” because of their soft mochi mochi texture, but the original Pon de Ring donuts don’t actually contain any mochi. Instead, according to the company, the donuts are made with a combination of wheat and tapioca flour.

However, the matcha donut series takes inspiration from traditional Japanese desserts, such as matcha green tea, azuki red bean, kinako toasted soybean powder, and mochi. The Pon de Uji Matcha has a matcha glaze and filling of matcha cream, black sugar syrup, and mochi.

Sounds good? One of our staff went to check out the collection last year and sampled her way through some of these wagashi-inspired donuts:

@tokyotreat 🍵+🌸=😋🍩✨ ….Part 2! #fyp #foryoupage #tokyotreat #japan #tokyo #donut #cherryblossom #matcha #greentea #sakura #snacktime ♬ Chill / Hiphop with a lazy atmosphere(931169) – Doggie Jazz

Collaborations

Along with seasonal flavors and designs, Mister Donut is also known for their collaborations. In January 2020, they did a limited release with the French pastry chef and chocolatier Pierre Hermé. The collection included 6 elegant donuts, one of which was the “ Pon de Ispahan ”. Ispahan is a pink pastry made with rose, raspberry, and lychee and this donut had all of those luscious flavors but in mochi donut form.

The Pon de Ispahan was filled with a rose and lychee infused cream and was coated in a raspberry glaze with chocolate and raspberry pieces as a garnish. Fluffy, chewy, and bursting with flavor, this beautiful pink donut was only about 2$ and quickly sold out.

Pon de Lion

Japan has a love affair with mascots. Everyone, from municipal governments to banks, has their own mascot, with cute characters appearing on all of their branding. Although Mister Donut already has a mustachioed chef included in the brand logo, they also have a host of characters based around their donuts. The most famous of which is the adorable “Pon de Lion”.

The character is a lion sporting a mane made of the Pon de Ring donut. For the Mister Donut fan, there is plenty of merchandise featuring the character and even Pon de Lion donuts pop up in shops from time to time.

Mochi Donut Craze

Around 2019, mochi donuts started appearing in the major cities in the continental U.S., from Seattle, to San Francisco, to New York City. Even though mochi donuts had already been popular in Hawaii for over a decade at this point, the rest of the country was finally getting on board.

Part of the trend was largely aided by the instagrammable quality of the dessert and the creativity of bakeries with their flavor and color combinations. From multi-colored cereals, to rocky road, to boozy editions, it seems there is no end in sight!

Making Mochi Donuts at Home

For those lucky enough to travel to Japan, a visit to Mister Donut is often on the culinary bucket list. But for those unable to make the journey, there is always the option to make your own Pon de Ring at home. Although donut making is not for the faint of heart, this brave blogger has mapped out all the steps you need to make the ultimate homemade Pon de Ring !

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Restaurants, food and drink, restaurants, food and drink | japanese mochi doughnut chain opening new rino location.

A new type of donut is rising in Denver.

Dochi, an Orlando-based donut shop that specializes in Japanese mochi donuts, is getting ready to open its first Colorado location in RiNo next month.

“Most people don’t know what a mochi donut is, so our goal is to give everyone a chance to try it,” said co-founder Jason Le.

Dochi will be at 2449 Larimer St., where Hi Tide poke shop operated  before closing in October . An official opening date has not been set, but the shop expects to open daily at 11 a.m. — yes, don’t plan on grabbing donuts for breakfast — and close between 3 p.m. and 6 p.m. depending on the day.

Le started Dochi as a pop-up with his childhood friend Frank Phan, who used to own a donut shop, in 2018. Le worked for JetBlue, and through his travels to Japan, he fell in love with the mochi donut, but could never find one in Florida.

The RiNo location will be the brand’s fifth, joining two in Orlando and two in Seattle.

“I’m not a big donut person. But when I tried a mochi donut, I’m pretty sure I had one every day after that when I was visiting,” Le said. “The texture is chewier, softer, airier with a soft crisp on the outside. And it’s not too sweet. So, unlike a typical donut, where you can only eat one or two, this donut is easy to snack on.”

Mochi donuts are made with sweet rice flour, and typically contain half the amount of calories as the standard cake or yeast donut. The sweet treat’s unique shape resembles a “baby teething ring,” meant to be broken apart and shared.

Dochi’s new shop will serve bi-weekly rotating flavors as well as core popular flavors that have gained Dochi a loyal following, including the Ube Glaze, which is made from a sweet purple yam, and the Japanese-inspired Matcha Oreo. It will also offer coffee and Japanese-inspired drinks, like Uzo lemonade.

Le has brought on two part-owners to help run the business, Jennie Nguyen and her husband Johnny, who are Denver natives and longtime friends of Le. Jennie previously worked as a dental hygienist but decided to quit her job and help Le full-time when she heard he was expanding.

“When I found out Jason was opening his first location in Orlando, we flew out to support him, tried the donuts and loved them,” Jennie said. “Every time we go to visit Orlando or Seattle our friends and family beg us to bring them back a box of donuts, so we thought this would be the perfect opportunity to introduce them to Denver.”

The group of owners subleased the 1,100-square-foot space from Hi Tide last November and decided to wait until COVID vaccines were widely distributed to get ready for the opening.

Zach Cytryn with Denver-based Broad Street Realty helped Dochi secure a spot.

Eventually, Le and the Nguyens hope to grow Dochi throughout Denver.

“Every time I visit Denver, I always fall in love with it,” Le said. “I love the friendliness of the people, and one day, I’ll probably move here.”

Third Culture Bakery, known for its matcha drinks and mochi muffins,  is also opening its second Colorado location  at 2500 Lawrence St., Unit 200, within the S*Park development on the edge of RiNo this weekend.

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We are Mochill, Japanese-style Mochi Donut Store based in California, USA.

Mochill Mochi Donut opened its first location in San Francisco CA in 2019 and is expanding locations across the State of California. We started with the Mochi Donut concept store which is a fusion of Japanese and American culture but we are now exploring a variety of donuts with interesting textures and flavors. Mochi Donuts are chewy treats made from rice and tapioca flour and have more texture and are lighter than traditional american donuts. “Colorful” and “Not too Sweet” are the two aspects we value when coming up with new flavors to bring relaxation and excitement to Mochill customers. Brioche, Cronuts, French Puff, and Mochi Malasada are available to purchase at most of our locations.

Raw materials

Made with rice flour, a traditional Japanese ingredient Mochi donuts

In addition to the quality of the rice flour, the ingredients used to make mochi donuts made with rice flour are also carefully considered in terms of the ingredients that are added to give the donuts their sticky texture. Natural ingredients are used, and to enhance flavor and nutritional value, natural dyes and nutrients such as butterbur sprouts, green tea, and black soybeans are sometimes added. This creates mochi donuts that not only taste great, but also look beautiful. Even though it's mostly made from rice flour, we still contain small portion of wheat flour to hold the shape of the donuts.

Food texture

Sticking to the glutinous texture

Mochi Donut has its own special chewy texture that you can’t find in any of the donuts around the world. You can enjoy both crispness and chewy texture from a donut. Various toppings give you additional contrast to overall taste which gives you a whole new experience every time you try out a new flavor!

Besides Mochi Donuts, we offer Brioche, French Puff, Cronuts, and Mochi Malasada with “Not too sweet” Japanese taste flavors. There are over 30 Mochi Donut flavors which are rotated monthly at each location. We are thriving to explore and come up with new flavors every month.

Brioche is a bread of French origin whose high egg and butter content give its rich and tender crumb. It’s made with an enriched dough which gives it a soft texture and amazing lightly sweet taste.

French Puff

French puff is the lightest and the most delicate doughnut you’ll ever try. The exterior is crisp while the inside is tender with various flavored custard options.

Cronut is a donut that’s made from croissant-like dough fried in oil. It’s a hybrid of croissant and donut.

Malasada are the Hawai’i s favorite fried treats made of flattened rounds of dough coated with sugar. Mochi Malasadas are made with special mochi mixture flour which gives a chewy texture with selections of flavored custards.

Commitment to Coffee

Commitment to Coffee Commitment to Coffee

We have partnered with Honolulu Coffee Company from Hawaii to provide the best experience of Hawaiian coffee which are roasted fresh and shipped to our locations. We believe the donuts and coffee are the perfect match. Our locations are the only places you can have the best Hawaiian coffee experience in California.

ABOUT Honolulu Coffee Company

Honolulu Coffee was founded in 1992 with one small kiosk in downtown Honolulu Hawaii. Honolulu Coffee is dedicated to creating an exceptional Hawaiian coffee experience for our customers and guests, committing to sustainability, and supporting the communities that we serve. Honolulu Coffee is committed to the success of our company through continuous improvements, adaptability and consistently delivering the Spirit of Aloha. It is our mission to exceed competition and continue company growth by executing the above fundamentals, while also developing people both professionally and personally.

Mochill SISTER BRAND

Takoyaki is a savory Japanese street food in the shape of a ball (about the same size as a golf ball) and is cooked in a special cast iron griddle to get its signature shape. This addictively delicious bite-sized eat originated in the Osaka prefecture of Japan in 1935.

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A Pastry Chef’s Guide to Making Mochi Doughnuts

By Clarice Lam

All products are independently selected by our editors. If you buy something, we may earn an affiliate commission.

When I think of mochi doughnuts, I think of anything made from glutinous rice flour that has been fried, which is a pretty vast family of foods. My first experience with anything close to what people now commonly refer to as a mochi doughnut was at a Japanese bakery in New York’s East Village. The doughnut was shaped like a cruller and coated with sugar. It came wrapped in a cellophane baggie that was taped shut. It didn’t seem all that appetizing: Condensation from the humidity and sugar had fogged up the cellophane and it just looked meh, but a pastry chef friend insisted I try it. Holy doughnut holes, it was good! Crispy on the outside and chewy on the inside, it was lighter and less sweet than your average doughnut.

Fast-forward several years and another version of the mochi doughnut began trending worldwide. Glazed in all different striking colors, these doughnuts were shaped like a baby’s teething ring, made up of eight dough balls stuck together in a circle. In Japan, these doughnuts are called pon de ring thanks to their similarity to the chewy Brazilian cheese bread pão de queijo . (Pon de ring was first released by the doughnut chain Mister Donut in Japan in 2003.) Oddly enough, neither pon de ring or pão de queijo are made with glutinous rice flour. Both typically use tapioca flour, and while pão de queijo is gluten-free, most recipes for pon de ring also include wheat flour. So WHy aRe ThEY cALleED MoCHI doughnutS ThEN?!

Some folks suggest the name has less to do with the glutinous rice flour that we often associate with foods called mochi and more to do with the phrase mochi-mochi, which describes a uniquely soft but elastic or even bouncy texture. On her site, Just One Cookbook, Namiko Hirasawa Chen writes : “In Japanese, we describe Pon de Ring’s mochi-like texture as mochi-mochi (モチモチしてる) or mocchiri (モッチリしている) texture, but it does not always mean that the food being described is made of mochi. For example, bagels with a chewy texture can be described as having a mochi-like texture.”

Hole in one.

Name aside, I wanted my mochi doughnuts to be gluten-free. So when I created this recipe , I decided to leave out the wheat flour and swap in a combination of glutinous rice flour and tapioca flour (also known as tapioca starch). This combo produces a doughnut with a supremely chewy interior, plus a thin and crispy exterior that creates an amazing ASMR soundtrack when you break one open.

How to make mochi doughnuts at home

To make the doughnuts, you’ll bring a mixture of milk, sugar, butter, and salt to a boil, then remove the pan from the heat and stir in the combo of mochiko and tapioca flours. That lumpy paste gets mixed in a stand mixer until smooth, then you add an egg and baking powder to make a sticky dough. After a little rest, you’re ready to shape your doughnuts and fry them until golden brown all over.

Sweet Rice Flour

I’ve included recipes for some of my favorite glaze flavors—including matcha, raspberry, chocolate, black sesame, and ube. Once your mochi doughnuts are cooled and glazed, feel free to garnish them with colorful sprinkles, nuts, whole sesame seeds, candy, toasted coconut, or whatever you like.

You can form these mochi doughnuts into the traditional pon de ring shape, but I actually prefer to make them into doughnut holes—either simply glazed or just coated in cinnamon sugar. Can you think of anything better than a bowl of mochi doughnut holes to eat like bonbons? I sure can’t.

Anna Stockwell

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About Munch Munch Mochi Donut

What’s mochi donut 8, small, round dough balls connected in a circle of delicious and fun sweets .

Mochi donuts, also known as “Poi Mochi”, are a fusion pastry crossing traditional American doughnuts and Japanese mochi. Mochi donut is made with natural rice flour which attributes to its chewy and stretchy texture. There is an alluring sticky addictiveness to each bite; a textural element that is completely different from yeast or cake donuts. ​

Give Munch Munch Mochi Donut a Call Today!

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The Lancer Feed

Out and About: Mochi Donut Factory brings unique treats to the community

Mochi Donut Factory opened on Sept. 12, 2022, and began selling their treats. Flavors featured include rocky road, churro, chocolate, pistachio, strawberry and hazelnut.

Juli Mejia , Editor In Chief January 30, 2023

At only an 8-minute drive from Lafayette next to Silkys, a new donut shop opened with a fun twist to its sweets; they are half-donut, half-mochi. Mochi, a common dessert in Japanese culture, is made from rice and is a chewy dough. 

The Mochi Donut Factory opened on Sept. 12 of 2022 by co-owners and couple Carlo and Jaen Henson.  The Hensons were born and raised in Manila, Philippines before they moved to the United States. Carlo has had experience in the food industry and Jaen has had experience owning and operating her own smaller businesses. They recently decided to collaborate with their experiences to open up their own shop. 

“ After managing a few restaurants in my career, I wanted to open my own food business that would be simple and unique to the area. My cousin suggested mochi donuts which are popular in Hawaii and California. I began researching what it is and the process of making it and it fits the criteria of what I wanted to open,” Carlo said. 

While walking into the shop located at 16023 Manchester Road, the blue and white walls give it a simple yet elegant feel. To the right of the front door is the general seating area with three tables, and to the left is the register and a display with 14 flavors of mochi donuts.  Each donut costs $2. 

The Hensons are especially careful with how they make their donuts, as they have the flour mixes imported from Hawaii, where the mochi donut was invented. And they plan to soon offer Kakigori, Japanese shaved ice, and bubble tea along with their mochi donuts. 

Hours are from 7 a.m. to 5 p.m. except on Wednesday and Sunday, when the shop closes at 11 a.m.

Not only is it a really convenient location in the Lancer community, but it also gives people a chance to try food they aren’t used to. As stated by a reviewer on their website, mochidonutfactory.com, “They are nothing like you’ve ever had before.”

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chris songco • Jan 30, 2023 at 2:14 pm

filipinos represent!! <3

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