What is with all the donut shops? (Dallas, Fort Worth: transplants, sale)

[tcualum]

What seems to differentiate the local donut shops in the DFW area from Krispy Kreme and Dunkin are the sausage rolls that evolved from the kolaches that West is famous. At the donut shops I visit occasionally the sausage rolls are extremely popular and bring in customers such as my husband who do not want something sweet for breakfast.

Some of them also offer other items that you can't get from chain shops. For example, for my older son's 10th birthday I splurged on a custom donut display made of donuts that spelled out Happy 10th Birthday _____ that was decorated according to his hobbies and interests. They were a huge hit when I brought them to school. A lot of them have unique seasonal and holiday donuts as well. When my sister moved to Atlanta from Houston she missed the local mom and pop donut shops with their sausage rolls and creativity so she visits one every time she comes to visit me.

[Chloe333]

Originally Posted by kyam11

How much do you think a donut shop makes? I can tell you it is more than you think.

BTW - Korean owned in TX. In CA it is Cambodian or Cambodian born Chinese (my wife)

Could the owner make $70,000 a year? If so, that wouldn't be such a bad gig. I would imagine it's low stress. You would just have to commit to waking up very early. Someone on here said they close up by early afternoon.

[DFWUser1]

In general retail here is a lot - not only donuts or dentists, but any kind of retail compared to other areas.

Reg. donuts - the best I have ever tasted here is at Max's Donut Shop in Allen - Greenville and Main Street intersection. They serve warm, Super soft and melts in mouth. There will be lines early morning on weekends.
After I came to know about this place, I wouldn't buy donuts anywhere else.

You can try and see the difference.

[kyam11]

Originally Posted by Chloe333

Could the owner make $70,000 a year? If so, that wouldn't be such a bad gig. I would imagine it's low stress. You would just have to commit to waking up very early. Someone on here said they close up by early afternoon.

That would be really low. My wife's family (using this term loosely)owns anywhere from 100-200 donut shops in CA. Southern CA and Northern CA. Wife's parents own 1, uncle owns 1, other uncle owns 1, other uncle owns 1, other uncle owns 1, great cousin owns, 1, etc. Some probably aren't really family but I can't differentiate who is and who isn't. No one owns more than 2. The highest one (downtown SF) makes about $350,000 a year after all expenses. Wife's parent's make about $4000 a week and that is a pretty good one. Least amount would be about $70,000 a year or so. Most earn about $125,000-$175,000 a year.

Having said that this is due to a few reasons:

1) Both husband and wife works every single day of the year. 1st person needs to be there around 4AM and both are there by 7AM and they both leave around 3PM. Most are also open for lunch and have sandwiches and/or burgers, fries, and shakes. If not profit is less.

2). Labor is minimal. A baker makes from 70-$100 per night and he starts at midnight and leaves around 6AM. They have one person (other than baker)that helps them throughout the week and probably works from 30-40 hours per week.

3). Donuts cost about 7c- 8 cents to make each (that includes labor).

4). Monday -Thursday they make about $400 each day after all expenses, Friday is about $500, Saturday and Sunday is about $1000 each. Give or take about $4000 per week in total profit.

Reason they like the business is

1). Barrier to entry is high. Most American people have no desire to work this kind of job. That means they want to buy a business then hire people to run it. This brings profit down significantly which means you would only make about $1000 a week using my wife's parents shop as an example. Simply not worth it for the investment.

2) Minimal education needed. Just takes hard work.

3) Finished by 3PM

4) They know the business so when a new family member comes over or gets old enough they can help them open a new shop. They put winchells out of business in the 80s/early 90s. Krispy Kreme also came and went. Still a few left but nothing like there was.

One thing to note is that the donuts aren't as good as they used to be because of the trans fat ban. That really made donuts just not as good.

My guess is that in DFW Koreans stated opening the independent shops and started helping family/friends come to the DFW area and open shops.

[CA2Dallas]

Agree with OP on the Dentists...
What’s with dentists pretty much every strip mall?

[cordata]

Originally Posted by CA2Dallas

Agree with OP on the Dentists...
What’s with dentists pretty much every strip mall?

Well, it would seem to go pretty well with the donut shops, wouldn't it ?

[Chloe333]

Originally Posted by kyam11

That would be really low. My wife's family (using this term loosely)owns anywhere from 100-200 donut shops in CA. Southern CA and Northern CA. Wife's parents own 1, uncle owns 1, other uncle owns 1, other uncle owns 1, other uncle owns 1, great cousin owns, 1, etc. Some probably aren't really family but I can't differentiate who is and who isn't. No one owns more than 2. The highest one (downtown SF) makes about $350,000 a year after all expenses. Wife's parent's make about $4000 a week and that is a pretty good one. Least amount would be about $70,000 a year or so. Most earn about $125,000-$175,000 a year.

Having said that this is due to a few reasons:

1) Both husband and wife works every single day of the year. 1st person needs to be there around 4AM and both are there by 7AM and they both leave around 3PM. Most are also open for lunch and have sandwiches and/or burgers, fries, and shakes. If not profit is less.

2). Labor is minimal. A baker makes from 70-$100 per night and he starts at midnight and leaves around 6AM. They have one person (other than baker)that helps them throughout the week and probably works from 30-40 hours per week.

3). Donuts cost about 7c- 8 cents to make each (that includes labor).

4). Monday -Thursday they make about $400 each day after all expenses, Friday is about $500, Saturday and Sunday is about $1000 each. Give or take about $4000 per week in total profit.

Reason they like the business is

1). Barrier to entry is high. Most American people have no desire to work this kind of job. That means they want to buy a business then hire people to run it. This brings profit down significantly which means you would only make about $1000 a week using my wife's parents shop as an example. Simply not worth it for the investment.

2) Minimal education needed. Just takes hard work.

3) Finished by 3PM

4) They know the business so when a new family member comes over or gets old enough they can help them open a new shop. They put winchells out of business in the 80s/early 90s. Krispy Kreme also came and went. Still a few left but nothing like there was.

One thing to note is that the donuts aren't as good as they used to be because of the trans fat ban. That really made donuts just not as good.

My guess is that in DFW Koreans stated opening the independent shops and started helping family/friends come to the DFW area and open shops.

Honestly I am astounded by all of this. I had no idea the donut business could so profitable. You walk into a lot of those places and it looks like they are only selling a few dozen per hour. When you factor in that some offer lunch, I can definitely see then how the profits go up but just donuts...you really don't even think too many eat them these days. Working every single day of the year....wow.

[Gilah G.]

Thank you Kyam11! !
I repped you for that wealth of information.

[Chloe333]

Originally Posted by Gilah G.

Thank you Kyam11! !
I repped you for that wealth of information.

Yeah, great summary Kyam11! Interesting!

[Tigerbait73]

Yes, pretty much a Korean thing. DFW has a ton of Koreans and they have got it down to a science. They almost all look the same and for the most part pretty good with great prices. Asians in general will rarely turn down an opportunity to invest in things they see others successfully doing. And for that I am grateful for the 3-4 donut shops within a mile radius of my house.

The funny thing is the shops always just have a sign saying "Donuts" and never actually display their real name. But yes, wish more of them would actual actually open beyond noon but I'm sure they've realized it's not as profitable.