Donut Shop Business Plan Template [Updated 2023]

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V. Competitive Analysis


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Direct & Indirect Competitors

Hank’s Donuts
Hank’s Donuts is an international donut and coffee retailer. The company has over 7,600 points of distribution in the United States and is one of the largest coffee and baked-goods chains in the world. The chain is a market leader in coffee, donut, bagel, muffin and breakfast sandwich categories. According to the company website, it sells more than one billion cups of coffee each year.

About 85% of Hank’s Donut’s points of distribution are traditional restaurants, consisting of stand-alone locations and those contained in gas and convenience locations. In addition, the company has full- and self-service kiosks in grocery stores, hospitals, airports, offices and other locations with small retail footprints.

Donut Depot
Founded in 1937, Donut Depot is a leading branded retailer and wholesaler of doughnuts. The company produces more than 20 varieties of doughnuts, along with a broad array of coffees and other beverages. Donut Depot generates revenue from company-owned stores, domestic franchise stores and international franchise stores. The company has 95 company stores, 159 domestic franchise stores and 574 international franchise stores in 21 countries.

As well as selling products through its retail outlets, the company also wholesales branded doughnuts and packaged sweets to a variety of retail customers, including convenience stores, grocery stores, and other food service establishments.

Competitive Advantage

[Company Name] has several advantages over its competition. Those advantages include:

  • All-Natural and Homemade Ingredients: The company’s competitors are large franchises who use ingredients filled with trans fats to preserve freshness. [Company Name]’s donuts are made fresh, in-store, using all-natural ingredients and natural sugar.
  • Location: [Company Name] will be located in a highly trafficked, prime retail location in a busy intersection of town.
  • Uniqueness: [Company Name]’s donuts are made from a pastry chef who has perfected his recipe. Customers will flock to his donut shop repeatedly as the donuts are made with unique ingredients and are fluffier and more moist than the competition.
  • Pricing: [Company Name] will offer premium artisanal donuts at a price point that is competitive with other establishments and be moderately priced for freshly made donuts.
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