Today, a donut business is considered technologically uncomplicated and an affordable investment. A small business can be started by investing only $10-15,000. The start does not require the hiring of highly qualified personnel. Mandatory certification of food production has long been canceled, so the technological side of the issue should also not bother the businessman. A large selection of modern equipment, from simple devices to complex automated lines, make a donut business affordable and understandable. According to economists, the profitability of donut production can reach up to 100%.
Most of the money will be spent on the purchase of equipment. The price of donut equipment depends on its performance. So, a device with a capacity of 200 pcs / hour will cost about $650. But the device, producing up to 2400 units/hour, will cost the entrepreneur $3,000 or more.
Make an Analysis
Before opening a donut business, you should study the local market and its main competitors. Your main client is a person who wants to eat a sweet and high-calorie product quickly. A woman watching her figure is not the most popular buyer of the good. Moreover, unlike pies or pancakes, donuts can only be filled with a sweet filling. A donut with meat or liver is no longer a donut.
This significantly narrows the audience of customers. Also, donuts are recommended to be consumed when they are warm. A reheated donut loses much of its true taste. In this regard, donuts lose to pies, pancakes, hot dogs, and other fast food. Nevertheless, pies and hot dogs have long become boring, and are found at every corner. But finding a fresh donut in the windows of fast food outlets is not so common. Therefore, the correct positioning and live advertising of a donut sales outlet can significantly increase the entrepreneur’s income.
How to Start a Donut Business
There are several options for starting a donut business. The first option is to open a retail outlet indoors. This can be in a shopping center, cinema, or shopping and entertainment complex. A good option is to place the company in the food court area. The shop can be equipped with tables for visitors, which will make it look like an ordinary cafe. It can serve tea, coffee, and various desserts, milkshakes, ice creams, etc. A disadvantage of this option is the high competition from other food shops located nearby. Plus, you will need to pay rent, which can be a considerable amount of money per month.
Another option for starting a donut business is to produce and sell donuts through a food truck or a commercial trailer. A food truck or trailer can be equipped with all necessary equipment for the production of donuts. An autonomous water supply system is installed in the mobile facility.
How to Choose the Equipment
This all depends on the patency of the outlet. It makes no sense to purchase an expensive device if it loads less than 50% of the declared performance. To organize a full production cycle, you will also need to purchase a donut maker, a dough mixing machine, a cutting machine, filling dispensers, refrigeration equipment, kitchen tools, etc. The total cost of this equipment is about $7000.
