How Much Money Does A Successful Donut Shop Make?
I won’t bury the lede. A top performing donut shop in a large-ish US metro area probably does about:
$1 million in sales
with 24% net income
and costs ~$600k to get started
Why do I care?
In Texas, while there are many specialty kolache stores, kolaches are often made and sold in local donut shops.
I consider kolaches a substitute good for donuts. They’re small, handheld, baked breakfast items; with single consumer purchases and office/church breakfast bulk orders.
So I wanted to get a benchmark what a high performing donut shop looks like.
It’s not exactly the path we’re going, but it’s nice to know that if we operate reasonably well, that’s a possibility for us. (Our current approach is wholesale, then doing direct delivery with no brick and mortar, which I think has more promise for scale/efficiency).