How do donut shops make a profit? Donuts cost around 50 cents.

How do donut shops make a profit? Donuts cost around 50 cents.

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  1. The profit in a donut shop is no longer in the donuts. Donuts are a perishable item, so if you prepare a large variety, you’ll end up with waste at the end of the day. No one wants day-old donuts.
    Donuts are now a commodity. You can get great, freshly baked donuts at just about every grocery store. Just as good and fresh…or better…than the local donut shop.
    So where’s the profit? It’s in the coffee. Coffee is also a commodity. You can buy raw coffee beans for about $1.50 US per pound. You can brew about 24 12-oz cups per pound. Of course there is a low cost to roast the green beans, but it’s not a big number.
    Starbucks sells 12 oz of coffee for about $2.11. So 24 12-oz cups at $2.11 = $50.64 per pound. So the cost of the coffee is about 4% of sales. After all, coffee is about 99% water, which is next to free in the U. S.
    So the game is to draw customers in with the lure of donuts, but add on coffee. If you can bump it up to one of the exotic brews…a caffe latte or a frapacinno or something higher priced…the coffee bean cost remains the same. The cream or flavor adds some cost, but it’s very, very minimal.
    So there you have it. Coffee is the game. Donuts are the attraction, but not the business. Coffee is the business to make money.

  2. I used to make donuts… about 225 dozen every night by myself at a major University, and many donut shops before and after that University job. Obviously, the profit comes from high volume sales.
    Fifty cents per donut is a few years in the past unless you’re looking at undersized Walmart type donuts… Or buying them by the dozen.
    A normal sized donut should be two and a quarter ounces of raw dough when cut. Not too many shops do that anymore. A pretty good shop will put out two ounce donuts. Winchell’s and Krispy Kreme are down to between one and a half to one and three quarters of an ounce. Winchell’s actually made us weigh every fifth donut that we cut. Quantity control is the bottom line in all food service establishments. For example: Sambo’s restrants used to make their cooks count 25 french fries on the plate of a dinner order.
    However, the retail price is always reflective of mainly two things: The real food cost to the establishment and whatever the market will bear. Can an owner charge 3 times the food cost? Some types of food service establishments can charge 4 times the food cost, or even 5 times or more… but not in a donut shop. That kind of markup is for five-star dinner houses.
    Typically, a donut shop owner will charge about three or three and a half times his real food cost. So his/her food cost would have to be around 15 or 17 cents for her to set a retail price of 50 cents.
    How much does the shop owner need to pay his or her supplier for a single fifty pound bag of dry donut mix? Add to that about 25 pounds of water and two and a half pounds of cake yeast, and it totals about 77 and a half pounds of raw dough.
    Is he getting fifty dozen donuts per bag of dry mix or is he being skimpy and producing 60 dozen donuts from each bag of dry mix? At fifty dozen per bag, he’s producing two ounce donuts when they are raw dough: (77 pounds of raw dough per bag and divided by 50 = about one and a half pounds of raw dough for each dozen… or 24 ounces of raw dough per dozen).
    However, the real question is: How many ounces of raw dough can he/she get for 15 to 17 cents? The answer depends upon the real food cost set by the supplier of the donut mix. Or maybe the shop owner will make up the difference by paying a lower than normal wage to the employees. This has it’s own separate set of headaches due to a higher employee turnover and additional employee training.
    There’s a lot of directions that a shop owner can take in order for him or her to keep the retail prices low enough that the customer will bear them.
    The bottom line is this: Can the shop owner produce enough sales per day to make a profit and stay in business? If he/she cannot sell a minimum of fifty dozen donuts per day then the business will surely fail.
    So this brings to mind: where is the shop location? Is there a lot of foot traffic? Can the shop and signage be seen easily from the street? Is the shop on the side of the street that has the most morning auto traffic… such as those who are on their way to work in the morning, so it’s an easy right turn in and an easy right turn back out to the street that they came from when they were on their way to work in the first place.
    Donuts are an impulsive purchase many times, and everything should be done that can be done, in order to make those impulses easier for the prospective customer.
    Can the shop deliver four or five dozen donuts per order, to mom/pop retail stores, or convenience stores regularly on a daily basis at wholesale prices so they can resell them? There goes the markup of the retail price in order to get more sales volume. Because a shop needs to be selling at least a hundred dozen donuts per day just to be healthy business.
    All of this weighs on sales volume with a lot of good wholesale accounts, and plenty of walk-in traffic, with customers who really feel that they received a good value for their money and an exceptional quality donut in both flavor and quantity, and not feeling like the product was priced too high for what they received… then those are lifetime customers, and they will be back time after time. They are the bread and butter of the business and must be treated like it.
    The business builds up over time and it succeeds like any other type of business… When things in the business are done right, both before it is established, (such as choosing the right location) and during all operations of the business, (such as establishing a lot of wholesale accounts).
    This is just a tip of the iceberg to making a profit in a donut shop, and there are many other things that must come into play in order to skin this cat. Too many to list here!

  3. Bear with me because this is going to be a *very* elaborate business plan. #enterpreneur
    Please have a look below.

    How do donut shops make a profit? Donuts cost around 50 cents.

    Source pixabay
    What do you see?
    Yeah, you are goddamn right! A simple box of 6 donuts.
    Grossly inefficient business model: 1,5€ per donut and 7,5€ for a box of 6. The donuts are probably quite sugary tasty and people love the stuff, but the store owner will never get the scale that they need.
    For the non-financially savvy: This means that this business model sucks!
    Plus, the cookie monster donut takes 2 minutes more to produce so it increases the Cost of Goods by 10 cents.
    But, some of us are born with some extra sprinkle of business acumen. #pun
    I want to introduce a REVOLUTIONARY donut business model that is going to put a hole in the current donut industry. #pun_no_2
    I want to introduce a freemium scheme. Meaning we will offer our basic tier of donuts for free, and the user… ah… the consumer will need to upgrade to a higher tier in order to get a more complete version of the product.

    How do donut shops make a profit? Donuts cost around 50 cents.

    Free tier: Also known as Poor man’s donut box.
    We offer a box of 6 donuts, BUT we will put only ONE high-quality donut inside.
    Before you jump on the conclusion that the consumer will get products for free, I raise you this: We will fill the box with Google Ads.
    Sweet-sweet ad revenue come to pappa.
    Not only, will we get paid to give away donuts for free, but also we can offer affiliate programs to other stores and get a cut of their earnings.
    Scalability potential: Infinite – who wouldn’t want a donut for free?
    Pricing : Zero for one box (only one donut though).
    Revenue driver: Google Ads and affiliate programs.
    Tier upgrade incentives: Ad annoyance, transportation annoyance as well (one huge box with one donut inside).
    Verdict: Ka-ching!

    How do donut shops make a profit? Donuts cost around 50 cents.

    Tier 2: Also known as the Fatty Patty package.
    We offer a box of 6 donuts, BUT we will put FOUR high-quality, double filling, donuts inside.
    We eliminate the ads, and we give more donuts of higher quality.
    It is a considerable upgrade from the previous tier, with many many hidden perks, such as:
    Donuts of various shapes.
    Different flavours
    Vegeterian options
    We smile, while we are serving the donuts.
    Scalability potential: Less than previously, but still.
    Pricing : 10€ for one box (with a hand written name tag on top of it).
    Revenue driver: Premium payment.
    Tier upgrade incentives: Not luxurious.
    Verdict: Now we are talking!

    How do donut shops make a profit? Donuts cost around 50 cents.

    Tier 3: Also known as the donut connoisseur’s package.
    We offer a box of 6 donuts, AND YES we will put SIX high-quality, double filling, extra soft, triple chocolate donuts inside. (How revolutionary).
    We give EVEN more donuts of higher quality and specs and so many perks that I cannot even count them:
    3-D printed donuts in the shape of your favorite celebrity.
    1000+1 flavours, including, but not limited to, pineapple, roastbiff, tomato AND pumpkin-pie.
    Vegan AND gluten-free option.
    Donuts sprinkled with gold dust before the take away.
    Scalability potential: Limited
    Pricing : 50€ for one box OR 1000€ for lifetime access.
    Revenue driver: Premium payment.
    Tier upgrade incentives: God Tier is still under development.
    Verdict: Show me the money.
    I am looking for partners.
    Serious offers only please.

  4. I just had this conversation with the owners of a local donut shop here in town.
    Their expenses broke down to roughly two thousand bucks a month in utilities, 9,000 a month in payroll (three employees, 6 hour days), and about 12,500 bucks in general “donut” expenses (frosting and the like), with another 2,500 a month in rent. The two owners work ten hour days and just take the profits as their pay, they have no desire to expand the business.
    They sell damn near a thousand donuts a day, or roughly 1,500 in grosses, just in donuts. They also sell milk at four times their cost, or roughly 750 bucks a day in gross/600 bucks a day net, and cakes. They sell coffee (as house been otherwise noted) at roughly 40 times their cost. Their freaking cakes are fantastic, and she told me they do around 2 cakes a day at 50 bucks per, netting about thirty bucks per if she or her husband make them.
    When you start to do the math on it, they make a fistfull of cash. Hard work, but okay money. The two of them probably make around 80–110k a year if I had to guess.

  5. It is a restaurant. The food cost is derived from “sales mix”.
    Profitability is determined by a host of different items sold at differing prices…just like any business.
    A restaurant, in most cases, buys raw product, prepares/cooks it and then, packages it for the customer.
    The menu in the restaurant is the primary marketing tool for the operator. Folks want a group of items to choose from and you give it to them.
    Please, do not get tangled up in a “doughnut costs 50 cents”. That isn’t a pathway to accurate restaurant business analysis.
    We owned a fine dining place 20 years ago. A frenched rack of lamb cost us $15.00. We sold it for $29.95. How can you make a judgement on business viability with that information? It is one of 14 different entrees a dozen more appetizers, five desserts, a wine list and cocktails.
    Every doughnut shop is different. An independent I know offers about 20 assorted freshly made doughnuts for $1 each. They’ve been in business for 45 years. They have cinnamon rolls at $2.25, frosted cinnamon rolls at $2.75. Six types of coffee, muffins at $2.25, specialty doughnuts at $1.49, They had a Tom Brady #12 doughnut for $2.79 the other day. They’ve got a cooler with juices.
    On Sunday morning you have to muscle your way through the crowd to get your Boston cream.
    Just what does a “doughnut cost 50 cents” have to do with that?
    I don’t know their numbers, but, I can get darn close.
    Food cost 22%
    Payroll 33% (family owned/operated)
    VAR 12%
    Rent/occupancy 7%
    If it was a franchise add 7%
    There are a lot of doughnut shops out there…do you know why?
    If you work hard and pay attention to the details (movie stars need not apply), you make a decent living.

  6. Donuts cost more than 50 cents each. Particularly specialty donuts that can cost up to $ 3.00 each. There is a lot of profit in fried dough covered with icing.

  7. No 50 cent donuts in San Francisco. But there are some great donut shops. Dynamo Donuts is a favorite of my wife and self. But the little shop two blocks away makes a decent donut. I rarely buy their coffee; just pick up a couple donuts to have with my own coffee at home.
    BTW: I roast my own coffee beans, and decent raw beans are more like $5.00 to $6.50 a pound. One should get about 24 16 oz cups out of a pound. That should be about 30 cents to make 16 ounces of brew.

  8. I would think two reasons.
    Volume any large donut shop just sells hundreds or even thousands a day.
    And all the materials or ingredients are premixed and come in bulk, so there is very little waste and the donuts are relatively quick to make when created by a machine.
    I am sure there are also small details, like its generally a take out food, and paper supplies are also not too expensive.

  9. Where do you buy doughnuts? The ones around here, if you have a coupon, are $4 a dozen. That’s somewhere close to 65 cents each. At normal price they are closer to 80 cents each. There is one doughnut shop that charges $27 a dozen.

  10. Yeah but it only cost about 25 cents to make a glazed donut. Glazed donuts are basically puffed up so much that they are mostly air. Plus other types of donuts and muffins cost a lot more. Plus there’s coffee, juice, or even sodas. So the real profit comes from the things they sell besides regular donuts.

  11. Donut shops must pay for rent, as discussed above, but also for equipment. Equipment costs between $15,000 and $20,000 assuming that you buy your equipment new. There are advantages to buying new equipment that many people don’t think about. For one, there are the tax advantages. Equipment depreciation can be deducted from your business tax return.
    The ideal client type are coffee drinkers and early morning school and business commuters that require caffeine and sugar to help them start their day. Examples of such clients include university students, business professionals, parents of school age children, and churches on Sunday morning who need several dozen donuts to feed their parishioners.
    Donut shop businesses make money by charging customers for their primary products, which are donuts and coffee. The price of a donut is between .80 cents and $1.25 and is usually based on the size, type, and quality of the donut. Alternatively, it is possible to charge for larger quantities where you give a discount to customers who purchase a half-dozen or dozen donuts.
    The Simple 3-Step Formula I Used To Earn $5,203.89 Per Day During Lockdown By Just Asking People Simple ‘Yes & No’ Questions On The Internet… – Click Here to Read

  12. Most donut shops sell more than just donuts. Whether it’s coffee, breakfast sandwiches, other drinks or foods, the mark up on those things is higher. While donuts are cheap, they’re also cheap to make and most of the hundreds of people going through that drive through each morning are getting more than just a donut or two. The volume of orders also helps. There are two Dunkin Donuts on the street just across from my street. It’s not a highway of even a major road but they’re only a couple blocks apart. Both have long lines snaking around the buildings and out the parking lots when I leave to take my kids to school. They still have the same massive lines an hour and a half later when I’m coming home. Even if you’re only making a few cents per donut, selling that many will add up.

  13. Actual ingredients in the donut are probably only 10 cents or so. But where they really make their money is on the accompanying drinks: coffee, tea, juice and so on.

  14. Thanks for the A2A
    You have many excellent, well thought out replies. I’ll add a little bit to go with these great answers.
    Here is my experience with donuts:
    there are “ commodity donuts” these are sold at grocery stores and are often made onsite. These are not very high quality and sell at the lowest price. They feature no adornment.
    Another version is the mass produced pre packaged bakery donuts. These are mostly longer shelf life cake style baked donuts.
    Then there are the premium donut shop donuts. These are higher quality very fresh offerings. Often the donut shops offer highly enhanced donuts that have icing or fil…

    Victor Allen’s

  15. People also ask
    Are donut shops profitable?
    Donuts are an 85% gross profit business. So, there is potential, but you have to really watch your expenses. The truth is, most shops don’t make very much at all. … It’s 90-10 rule with donuts . 90% of the business is done in 10% of the time, while the other 10% is done the other 90% of the time.
    Donut shop make money
    Instead, assume you sell each donut for a dollar and they cost you 25¢ apiece to make . You profit 75¢ per donut . You sell 100 donuts a day, you make $100 in revenue, your costs are $25.
    Can Money Be Made in the Donut Business?
    Donut shops have excellent margins, because the pastry sells as a standalone product. So making money in the donut business is entirely possible. Creative recipes, marketing and a low overhead business model can drive revenue in this business. Many donut shops are successful and profitable in the U.S. Look to prolific donut-focused chains like Dunkin’ Donuts and Krispy Creme for further confirmation that profit potential exists in the donut business.
    Shelf Life
    Donuts shops act like any bakery, where product turnover and minimizing waste are key elements to the sustainable profits. Donuts have a limited shelf life, and customers expect a fresh batch every morning. Day-olds are often sold at a steep discount, and anything aged beyond a day is not sold.
    Margins on Donuts
    The margins on donuts are excellent. In a securities filing by a single Krispy Creme franchise, margins were in excess of 70 percent. Operating as a franchise model, it is safe to assume similar margins for other stores operating under the same brand. A large franchise also has the ability to source ingredients at lower rates than a small business. Expect a slight reduction to margins for operating on a smaller scale.
    Think Beyond the Donut
    Upselling will bolster profits in the donut business. Coffee is a natural companion product that also has excellent margins. According to Coffee Makers USA, the margins on a Starbucks grande cappuccino are above 90 percent (coffee only). Dunkin’ Donuts has expanded coffee sales to grocery-store shelves, creating a larger scale brand through coffee sales alone.
    Analyze Competition and Get Creative
    Competition has a major influence on your ability to succeed at selling donuts. Location-dependent shops must focus on high traffic areas with great exposure. Select areas that are not near major chain stores to grab the maximum amount of market share in a locale. Selling creative donuts that combine unique flavors like bacon and maple can distinguish a business through higher quality products. Mobile businesses and delivery models can expand into a larger area and increase the profit potential. Office delivery and event catering are both effective sales strategies.


  16. Donut shop revenue is from drinks & food. Healthy sandwiches. Coffee drinks. Frozen drinks. Donuts are .99 at Dunkin. Donuts are sold by the dozen at $8.99. Most people are buying donuts in quantity to share. Dunkin does a lot of sales volume. We are known for our speed of service
    I almost forgot to mention the fact that sales forecasts based on previous sales numbers are very closely followed. This enables us to Pivot to the right production numbers in order to keep our waste low and our profits High. In other words , if this time last year we sold 1000 Donuts a day, we evaluate whether these numbers are appropriate and make the salable number of donuts everyday

  17. One cannot conveniently state the amount a donut shop is expected to make yearly if you do not know the size of the shop. Donut shop business is one of the businesses that an entrepreneur can successfully start in the corner of a busy street or on a mobile basis without breaking the bank for cash.
    The amount a mom and pop donut shop is expected to make annually will be far different from the amount a standard donut shop franchise with several outlets will make annually even if they operate in same location.
    Of course, the amount invested in a small donut shop is different from the amount invested in a large and well – organized donut shop hence the amount they will both make will be different. The approximate cost of starting a donut shop could cost anywhere between $5,000 and $500,000 depending on what you want to achieve.
    The Simple 3-Step Formula I Used To Earn $5,203.89 Per Day During Lockdown By Just Asking People Simple ‘Yes & No’ Questions On The Internet… – Click Here to Read

  18. Its a very good markup, but you have to have volume to make a net profit. Usually they express how many “holes” a shop must sell to break even. It varies by shops overheads and expenses.

  19. Huh?
    Back at All Saints Episcopal Church in Beverly Hills, the church at which I attended as a kid, 1957–1964, and was an alter boy (though an atheist, then and now), after the service you could get a warm glazed donuts for five cents, a nickel. Donuts were a loss leader. They weren’t selling coffee at a huge markup. Their thing was selling God and there there profit was at the collection plate. Making it nice for kids to come didn’t hurt.
    But honestly I don’t know how you got the 50 cent number for the price of a donuts, Colonial Donuts is a good place for an average donut and they charge $1.10 for standard and $1.60 for fancy. The more upscale Donut Savant sells there artisan regular size donut for $1.50 to $3.00 each. Donut Farm, which sells surprisingly delicious vegan donuts (surprise for me) in the range of $2.50 to $3.50. Maybe not at 50 cents, but at real prices donuts can be profitable.
    Even high volume donut purveyors like Krispy Kreme and Dunkin Donut sells third for about $1.00 each and they both have the coffee thing and a full menu going for it.

  20. As you can see from other factors, there are many factors that go into making a profit with a donut shop. Costs include ingredients, labor, and overhead. As others have pointed put, most donuts, especially specialty donuts, cost well over 50 cents. Ingredients probably run 10 to 25 cents, depending on the quality and size of the donuts. So even at 50 cents, and say 25 cents for day old, which many people would buy, the costs and some contribution to other costs and profit are provided. And no one probably sells just donuts, so as others have also pointed out, other items contribute to profit, including some pretty low cost items like coffee. As with any business, if you sell a good product, and therefore make good sales, you can probably make quite a bit of money. If you do not have good sales, the business is probably pretty borderline.

  21. The cost of opening your own donut shop can vary depending on many factors, fees, and expenses. In general, it’s reported that an initial investment in a donut shop can range from $10,000 to $15,000. However, this number only accounts for equipment, supplies, and initial rent. You’ll also have to account for hiring staff and other additional expenses.
    It’s reported that the average bakery makes $577 per day. A small location in a popular location can make up to $150,000 in profit annually. Furthermore, it’s important to keep in mind that sales can fluctuate seasonally. Sales start slow in January as people try to stick to their New Year’s resolutions and avoid sweets, then slowly increase as summer approaches.
    Your first step should be to write up a donut shop business plan. Business plans are important not just for keeping track of what tasks you need to complete, but for showing potential financiers or banks that you are worth their investment. Along with summarizing your company and understanding of the market, you’ll want to clearly lay out your ownership structure, marketing strategy, and financial projections.
    The Simple 3-Step Formula I Used To Earn $5,203.89 Per Day During Lockdown By Just Asking People Simple ‘Yes & No’ Questions On The Internet… – Click Here to Read

  22. It’s about volume and scale. They are purchasing ingredients at such a volume discount, they can get the cost down to pennies per unit.
    They are also making significant profit on coffee. This business model relies on high traffic to make enough profit

  23. ref: A by KA – valid points but the Q does not mention coffee at all; it’s strictly about donut SHOPS, not cafeterias, very few donut shops (read: mini-bakery) sell coffee OR is this a States thing ? (then it’s a misnomer: Donut Shop, if the prime business is coffee then it’s a cafeteria/ friend of mine worked for the Donut Factory at The Mount)

  24. 1..most people buy in bulk (by the dozen/bakers dozen.) They can charge more.
    2..making a donut costs 50 cents selling 1 costs 1.00-1.50
    3..Coffee. Almost everyone who buys a donut(s) buys a coffee drink.

  25. You can look at this in different ways. I think that the cost of making a dozen donuts is not that expensive, but are charging roughly $1.50 per donut. This is not a big profits. So, where could it be? The coffee. I love to grab a cup of coffee on my way to my destination, but, then I see donuts. I see Cupcakes. I see Muffins. I see bagels. Coffee Cakes! Oh No! There goes my diet again! These items go great with your cup of Joe….and it’s known!
    I believe that most of a profit must come from the coffee. Profit is made on the cakes too, but I think the bulk of the profit is from coffee.
    Bon Appetite

  26. Can Money Be Made in the Donut Business? “ Margins on Donuts
    The margins on donuts are excellent. In a securities filing by a single Krispy Creme franchise, margins were in excess of 70 percent. Operating as a franchise model, it is safe to assume similar margins for other stores operating under the same brand. A large franchise also has the ability to source ingredients at lower rates than a small business. Expect a slight reduction to margins for operating on a smaller scale.”

    Eight O’Clock

  27. Well a 50 pound bag of flour will make 68 dozen which is 816doughnuts = $408 dollars less a little cooking costs a bag of flour costs $10 roughly which is nearly 400 dollars profit.
    I can see its a good way to make money . just have to be in the right place to sell them.

  28. Simply by selling loads. Also, these shops probably sell other products, such as drinks. Coffee and tea are incredible money spinners because they cost very little and sell for a lot more.
    I don’t know about the US but here in the UK doughnuts are rather more expensive than the equivalent of US50c each, though less than that in a multipack. I’ve seen a pack of 5 for £1 and that equals US$1.30, so 26c each. However, that’s at a convenience store that sells lots of other products. Doughnut shops are not a thing in the UK but I vaguely remember seeing one in Canada where you could go in and buy doughnuts to take home but also you could buy coffee, tea, Coke, other soda and possibly other products to have with your doughnut eating in. Thus, if one sells for 50c and a multipack sells at roughly a 50% discount, you can work out what the sales needed are to make the shop profitable. Calculate the overheads of the shop, the cost of doughnut ingredients and the cost of ingredients for all other products. Include in the overheads the wages of all staff, not just servers. Now calculate the takings required to make a profit. From that you can guess how many doughnuts must be sold, though you also have to realise that other sales also contribute to profits.
    I just did a quick back of an envelope calculation to try and work out the sales needed at a local bakery where a large loaf costs £1.60. If all they sold was bread and they only sold one size of loaf, I think that they may have to sell 1000 loaves a day to break even. They don’t sell anything like that but they probably make money because they sell lots of pastries, cakes and other items that probably have much higher profit margins than bread. I reckon that they may sell 500 items a day to make a small profit and every item more than that can be seen as more or less pure profit, so when they sell 600 items they’re doing well. Your doughnut shop is probably doing something similar and their cash cow probably is the sales of drinks.

  29. Because donuts are really really cheap to make.
    Costs them 10c each in ingredients 10c in overhead costs and 10c to labour.
    So each donut makes them a 2/5ths margin.
    Most businesses work on 1/10th to 1/5th margins. Some food places a lot less.
    Sell 1000 a day and you made 2/5ths of 50,000c.
    After paying all your bills.
    $200 dollars profit/a day.
    Sell 500 get half that sell a hundred make $20.
    Sell 100 donuts a day 5 days a week? $100 profit a week.
    Never going to make you a fortune till you reduce your overhead, and start moving some real dunking donut type numbers.
    But not a bad screw.

  30. Thanks for the a2a!!
    From what I know, the profits are not solely in the donuts, but rather in coffees, other pastries, often decorated cakes, (birthday and wedding), and by selling in large quantities to businesses/groups. For instance, Krispy Kreme donuts are frequently purchased by fundraising groups like schools.
    I’ve noticed you mentioned donuts only costing $.50. I must say I’ve not seen them at that price in nearly 30 years!! You must have a great bakery!!

  31. Donut shops make a profit by pricing their donuts at around 50 cents each.
    This price point allows the shop to cover the cost of the ingredients and still make a profit.
    Additionally, many shops offer discounts or deals on large orders, which encourages customers to buy more than one donut.
    Finally, most shops sell other items such as coffee and pastries, which also generate profits for the business.

  32. You’re blessed, my friend. Doughnuts up here cost more than a buck and they’re not even fresh. You doughnut shops might be profiting off coffees or whatever else someone mm ight buy after they’ve been drawn in by the cheap doughnuts.

  33. The donuts at most places are just a lure, most places will make rheir money on drinks and other stuff.They also make money on volume of sales.

  34. Yes a doughnut may cost around .50 cent or less. But when you purchase that doughnut that might have cost .50 cents to make you pay 1.00 or more per doughnut. The markup is quite high. And doughnut shops do well selling coffee and other specialty items. So they are definitely making money.


  35. Reply
  36. In addition to the donut and coffee model, in Japan, Mister Donuts has recently carried out a promotional program with Pokemon to increase its sales, as well as to tack on merchandise to the collectible packages.
    Just remember that donut shops also have other products.

  37. I think they would cost lest than 50 cents each. They sell so many and the price they charge. How can they not make a Profit. And the Coffee that’s mostly all Profit.

  38. That’s retail price. It doesn’t cost anywhere near that to make them, and now they’re making them smaller, at least where I live, because the minimum wage keeps going up and every place reduces the employees, downsizing and downgrading the products.
    Kristy Kreme is still great, but smaller and more expensive.

  39. The answer lies in bundling.
    Donuts in America are almost always sold with a coffee, to complete the breakfast of millions of working professionals. Coffee is very cheap to make and commands a very high price uniformly across the market. This helps recoup costs that go into making donuts.

  40. They have different kinds. The charge more for some kinds, than other kinds. The charge close to $2 for beverages, other than milk. And they generally do their best, when people buy a baker’s dozen.

  41. Donuts certainly do NOT cost 50 cents to make which is why they are made at the shop or made at a central self-owned location that supplies the shops.
    They cost less than 8 cents each to make, half of that in materials.
    If a store were to buy donuts to round out their offering then it is possible they cost 50 cents each at wholesale but they also get credit for unsold product.


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