How Much Does a Donut Business Make?
The profit margin on a single donut is really good. A donut has an average cost of one dollar, and 70% of that is profit.
So, how much can a donut business make? It depends on the scale of your operation. There are many variables, which include the size of the business, the number of employees and the cost of utilities, lease or mortgage. All those things affect your bottom line and will affect what you get for your return-on-investment.
But here’s some food for thought, yes, pun intended. The annual income for a Dunkin’ franchise owner is around $124,000, or $60 an hour.
How Do You Open a Donut Truck?
If people can’t come to the donuts, you can bring the donuts to them. The Donut Truck as a stand-alone business entity is a relatively new idea.
Yet, although information is scant, the opportunities are boundless. And this is a donut business that doesn’t limit your creativity. How and where do you want to do business? Want to set up in the parking lot of an office complex? At a university? A manufacturing business park? Or at a special event?
Cinnabon offers a food truck franchise and Honey Dew has a donut cart, but that operates from a base store.
If you want to go it alone, gather information about equipment costs. If you plan to make the donuts in the truck, you’ll need a donut fryer ($8,500), a donut robot mark ($8,500, which makes the donuts before they are cooked), a refrigerator and freezer (total $4,000) and an exhaust hood ($3,000) as minimum equipment.
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