How do donut shops make profit

[TL15]

I get what @BrothaZay is asking

It’s not “how do donut shops make money” it’s how do you cover the overhead of a donut shop by just selling marginally priced items


On a daily basis sure the profit of one donut can cover the cost of many, but you have overhead like electricity, retail space, employees, insurance, etc. and you’re selling products that cost $1. It’s not a profit margin question, more of a daily expenditure vs. daily profit question.


Damn I could go for a maple bar right now tho

 

[Dad]

Because of nikkas like me who keep milk on deck

 

[Remote]

Because no doughnut shop sells only doughnuts

The margins on sandwiches and coffee are fantastic. Especially coffee.

Consider that a 12 ounce cup of coffee maybe costs a quarter...and probably a lot less. And the national average on a cup of coffee outside the home is maybe $2.50 or $3.

Off the bat that's over a 1,000% profit.

So who cares if you only sell 30 doughnuts today if between the morning and 2PM crowd...you sold 300 coffees.

 

[invalid]

The reason they may not seem to crowded is because it doesn’t take long to get customers their orders and have them in and out the store.

What type of donut shops y’all go to? This is every (non-cold) day. And they sell out by 11am.

Look at the “Gilt Bar” sign for reference.

 

[invalid]

Because of nikkas like me who keep milk on deck

Whole milk, too.

Congrats, you just might be a cac.

 

[Devilinurear]

How much 45 cent donuts do you need to sell to cover rent, utilities, inventory and payroll?

You can easily do the math yourself you lazy basterd

 

[boriquaking]

Usually those places have been around so long their rent is still relatively cheap.

or very often, business owner owns the building too.

i will say this, the mark-up on toast and eggs and bacon is crazy in a restaurant. and yes those places close at 1pm but they open at like 4am so everyone goes through for breakfast.

truck drivers, factory workers, people who tip.

 

[BrothaZay]

Imagine being unable to figure out basic business, brehs....

Keyword is profit. As in enough profit to actually live comfortable. What business do you own? Bum

 

[BigE214]

Local shop typically have less overhead cause the owner/family runs the shop.

Funny my first job was at Donut Palace when I was in the 7th grade. nikka would wake up like a grown ass man at 4am and drag my ass to work. I got plugged in with my grandma (RIP) and got paid in cash. They had two locations and the other location would bring us donuts and we sold em from the other store front.

My uncle, Donut Man (RIP), used to make the best donuts in the city for them nigggas too.

 

[CreepyMcCreeperson]

Most donut spots sell coffee. Coffee is cheap. They could be selling store brand coffee, and people would not know, and still buy it. People are paying for convenience.

Plus, most people aren’t buying just one donut. And people order multiple donuts for the office, or a meeting, or an event.

 

[WaveCapsByOscorp™]

Keyword is profit. As in enough profit to actually live comfortable. What business do you own? Bum

Still, fail to understand basic business practices...and get butt hurt at the same time

 

[BrothaZay]

Still, fail to understand basic business practices...and get butt hurt at the same time

That's what I thought. Get up and get ready for work boy

 

[WaveCapsByOscorp™]

That's what I thought. Get up and get ready for work boy

nikka ain’t you the one sitting around and watch tranny porn all day?

you taking the phrase “time to make the donuts” too seriously

 

[ColdSlither]

You have to do the math. For just donuts alone, 200 people pass through during the morning rush and each get a plain donut, at $.45. That's $90. If you can keep that up 7 days a week, that's $630. For the month, that's $2,520. Now add in all other variables, like getting two donuts and whatever type of coffee or tea between $2-$5, and you can easily be looking at $15,000 a month.

 

[BrothaZay]

You have to do the math. For just donuts alone, 200 people pass through during the morning rush and each get a plain donut, at $.45. That's $90. If you can keep that up 7 days a week, that's $630. For the month, that's $2,520. Now add in all other variables, like getting two donuts and whatever type of coffee or tea between $2-$5, and you can easily be looking at $15,000 a month.