Thinking about turning your love for donuts into a real business?
Well, running a donut shop can be fun—and yes, it can be profitable too. People are always up for something sweet, especially when it’s fresh, local, and a little different from the usual. And good donuts never go out of style.
So… maybe it’s THE time to start your own donut shop!
But before that, you need a clear plan that keeps you focused, organized, and ready for the real work behind the dream.
Not sure how to create one?
This donut shop business plan sample is here for your reference!
Donut Shop Business Plan Sample
Let’s take a look at a sample business plan from CraveGlaze Donuts and get helpful ideas to guide you through each section of your own plan.
1. Executive Summary
CraveGlaze Donuts is a specialty, flavor-forward donut shop based in Minneapolis, Minnesota. We specialize in handcrafted donuts made fresh daily, using premium ingredients and creative flavor combinations. The business is owned by Noelle Tamsin, who is passionate about food that brings people joy.
At CraveGlaze, our focus is on quality, creativity, and giving people a place to relax and enjoy good food. You’ll find everything from classic glazed and Boston cream to fun, seasonal flavors like maple bacon bourbon or lavender lemon.
Alongside the donuts, we serve locally roasted coffee, teas, and cold brews in a cozy space designed for conversations, coffee breaks, and catching up with friends. This shop is more than just a place to grab a donut—it’s a welcoming spot that feels like part of the neighborhood.
Market Opportunities
We started CraveGlaze because we noticed a growing love for unique, high-quality desserts in Minneapolis. People want something different—something that feels personal, fun, and full of flavor. Our main customers include college students, young professionals, families, foodies, and commuters looking for a great coffee and treat.
Unique Selling Points
Here’s what sets us apart:
- Fresh, creative donuts made with real, quality ingredients
- Vegan-friendly options are available every day
- A warm, café-style space that encourages people to stay awhile
Marketing and Sales Strategy
To get people through the door (and coming back), we’ll do the following:
- Post fun, eye-catching content on Instagram and TikTok
- Team up with local influencers and food bloggers
- Run pop-ups around town to meet new customers
Financial Highlights
We expect to bring in around $320,000 in revenue during our first year. We’ll keep our costs in check and expect to be profitable by the end of Year 1. As we grow, we plan to expand our catering, add merchandise, and build a loyal base of donut lovers who keep coming back for more.
| Financial Metric | Year 1 (USD) | Year 2 (USD) | Year 3 (USD) |
|---|---|---|---|
| Total Revenue | $320,000 | $420,000 | $540,000 |
| Operating Costs | $276,000 | $336,500 | $443,000 |
| Net Income (After Tax) | $37,400 | $70,975 | $82,450 |
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2. Business Description
CraveGlaze Donuts is a donut shop in Minneapolis that’s all about fresh, handmade treats and good vibes. We make small batches of donuts every day, using real ingredients and bold, fun flavors. Whether you're into the classics like glazed and Boston cream or want to try something different like maple bacon bourbon or lavender lemon, there’s always something new to love. We also have vegan options for those who need them.
But we’re not just about donuts. We serve locally roasted coffee, teas, and cold brews to make your visit even better. Our space is warm and inviting—a spot where friends can meet up, families can treat themselves, or anyone can relax with a donut and a drink.
Mission Statement
At CraveGlaze, we want to spread joy through great donuts and a cozy café vibe that brings people together.
Vision Statement
We aim to become a favorite local spot known for awesome flavors, great coffee, and being a real part of the neighborhood.
Future Goals
We’re focused on building something special and growing at the right pace. Some of our goals include:
- Getting our first location running strong and full of happy customers.
- We offer donut catering for local offices, schools, and events.
- Launching a rewards app to say thanks to our regulars.
- Doing pop-ups at local events and markets to get the word out.
- Eventually opening more locations around the Twin Cities.
3. Sample Menu
At CraveGlaze Donuts, we’re proud to serve high-quality donuts for every taste and occasion. From timeless classics to fun seasonal flavors and vegan-friendly options, there’s something for everyone on our menu.
4. Industry Analysis
Industry Overview
Donuts aren’t just a quick breakfast anymore. People want something fresh, interesting, and made with care. That’s what shops like CraveGlaze offer—donuts that actually taste good and feel worth it.
That trend is backed by the numbers. The global doughnuts market was valued at $11.22 billion in 2024 and is projected to grow to $11.62 billion in 2025, with steady expansion expected over the coming years..
Also, the doughnut store industry in the USA is growing, and the revenue is expected to reach $8.8 billion in 2025. In cities like Minneapolis, people enjoy small, cozy spots where they can relax and feel part of the neighborhood.
Market Trends
The donut industry is shaped by several emerging and ongoing trends:
- People want better donuts. Not just sugary rings, but donuts made with quality ingredients, cool flavors, and seasonal twists.
- Vegan and allergy-friendly options matter. More customers are looking for choices that suit their diets, so offering those can really help stand out.
- Social media drives cravings. A donut that looks amazing in a photo can bring in new customers fast, especially younger ones.
- Convenience is big. Online ordering, delivery, and catering are important because people want good food without the hassle.
- Support for local shops. Customers love knowing their money goes to a neighborhood business that supports the community.
Regulatory Compliance
CraveGlaze Donuts will follow all local and state health and safety rules. We’ll have all the proper licenses for operating a food business in Minneapolis and make sure our kitchen and café stay clean and safe. Our team will be trained in food safety, and we’ll stick to a regular cleaning schedule. We’ll also stay up to date on health inspections to make sure everything runs smoothly and by the book.
5. Customer Analysis
At CraveGlaze Donuts, we believe great donuts bring people together—and understanding who we’re serving helps us do that even better. Our shop is designed to welcome a wide mix of people who are looking for something a little more special than the usual donut run.
Target Market
We’re not just making donuts for anyone—we’re thinking about the real people walking through our door, scrolling through food posts on Instagram, or ordering a treat for their office. Here’s a look at the folks we’re excited to serve:
| Target Market | Needs | Preferences |
|---|---|---|
| Local Residents | A convenient, reliable spot for everyday coffee and donut runs | Cozy atmosphere, good coffee, fast service, classic and fun flavors |
| Foodies & Social Shoppers | Unique, photo-worthy products they can share online | Rotating seasonal flavors, bold designs, Instagram/TikTok appeal |
| Office Managers & Event Planners | Easy, reliable bulk ordering for meetings and events | Customizable catering options, attractive packaging, mix of flavors |
| Health-Conscious Indulgers | Options that align with dietary needs like vegan or dairy-free | Guilt-free indulgence, inclusive menu, clearly labeled options |
To better serve our customers, we’ve created a simple and clear customer persona that reflects the kind of person most likely to love what we do at CraveGlaze Donuts. This helps us stay focused on who we’re here for—so we can keep making choices that match their taste, lifestyles, and values.
6. Competitive Analysis
The donut scene in Minneapolis is full of options, with a mix of local favorites and national chains. Our main competitors are:
1) Glam Doll Donuts has a funky, fun vibe and offers creative donuts, but their shop leans more toward edgy and eclectic. CraveGlaze has a more relaxed, cozy café atmosphere and focuses on seasonal, rotating flavors that change every month.
2) Cardigan Donuts is popular in the downtown area and does well with the office crowd. They have a wide variety, but their setup is more about quick service. CraveGlaze is about slowing down, enjoying your treat, and being part of a local community space.
3) Mojo Monkey Donuts in St. Paul is known for quality and small-batch baking. They're great, but not as convenient for most Minneapolis locals. CraveGlaze is located in the heart of the city and brings that same quality closer to home.
Competitive Advantages
- We make fresh, small-batch donuts daily using real, local ingredients.
- A rotating menu with new and seasonal flavors every month to keep things exciting.
- A warm and welcoming café space to enjoy your treat, not just grab and go.
- Vegan options that taste just as good as the classics.
SWOT Analysis
7. Sales and Marketing Strategy
At CraveGlaze Donuts, our goal is simple: get people excited about donuts, create a strong connection with our community, and keep customers coming back.
Digital Marketing
1) Social Media
We’ll focus on Instagram and TikTok, where we’ll share photos of our donuts, fun behind-the-scenes clips, and updates on new flavors. Customers will be encouraged to post their own donut moments and tag us using CraveGlaze to help spread the word.
2) Website & Online Ordering
Our website will be easy to use and mobile-friendly, letting people browse the menu, order ahead for pickup, or get delivery through apps like DoorDash and Uber Eats. We’ll also make sure the site shows up on local searches like “donut shop near me” or “best donuts in Minneapolis.”
3) Email Newsletter
We’ll send out monthly emails with updates on seasonal donuts, special deals, and upcoming events. Plus, customers who sign up get a little treat on their birthday—a free donut to celebrate with us.
Community Engagement
1) Pop-Up Events & Farmers Markets
We’ll show up at local spots like farmers markets, breweries, and food festivals to let more people try our donuts. This is a great way to meet new customers and give them a taste of what we offer.
2) Local Partnerships
We’ll work with nearby coffee shops, coworking spaces, and event planners to offer CraveGlaze donuts at their locations. We also plan to take on catering orders for office meetings, school events, and small parties.
Promotions & Loyalty Programs
1) Loyalty Program
We’ll have a simple app-based rewards program. Every purchase earns points that can be used to get free donuts or drinks. The more often you visit, the more you get—just our way of saying thanks.
2) Referral Program & Influencer Outreach
Customers who refer a friend will get a free donut or drink as a thank-you. We’ll also invite local foodies and bloggers to check out our shop and share their honest reviews to help us grow through word-of-mouth.
8. Operations Plan
At CraveGlaze Donuts, we keep things fresh, fun, and organized behind the scenes so every customer has a great experience. This section walks through how we make our donuts, run the shop each day, manage the team, and keep track of our supplies.
| Operation Area | Key Tasks |
|---|---|
| Daily Prep & Production | Start early (3–4 a.m.), prepare dough, fry or bake donuts, and add toppings/fillings. Keep recipes consistent. Track ingredient inventory daily. |
| Staffing & Shift Management | Schedule bakers and front staff based on peak hours. Train staff on hygiene, food safety, and customer service. Assign clear roles. |
| Inventory Management | Keep a daily log of what's used and what's left. Set reorder points. Rotate stock to reduce waste and prevent spoilage. |
| Suppliers & Deliveries | Build strong supplier relationships. Schedule regular deliveries. Check item quality and always have backup sources for key supplies. |
| Maintenance & Equipment | Do regular equipment checks (mixers, fryers, ovens, etc.). Keep contact info for repairs handy. Track all maintenance activity. |
9. Management Team
At CraveGlaze Donuts, we’re a small team of people who care deeply about great food, good vibes, and making every customer feel welcome. Each of us has a role to play, and we work together to keep things running smoothly, both in the kitchen and behind the scenes.
Key Members
Noelle Tamsin – Owner / CEO
Noelle is the founder of CraveGlaze. She came up with the idea, created the brand, and handles the big stuff—like coming up with new donut flavors, making business decisions, and making sure everything stays on track. She’s creative and thoughtful and leads the team with heart.
Marco Rivas – Operations Manager / COO
Marco runs the day-to-day operations. He’s the one making sure everything goes as planned—staff is scheduled, the kitchen is stocked, and customers are happy. He’s super organized and always ready to solve problems quickly.
Dana Reeves – Finance Manager / CFO
Dana takes care of the money. She keeps an eye on all things financial—budgeting, expenses, and making sure we’re bringing in more than we’re spending. She helps us stay on track so the business keeps growing.
Organization Chart
10. Financial Plan
CraveGlaze Donuts’ financial plan outlines projected revenue, operating expenses, and net profits over the first three years of business, providing a clear roadmap for sustainable growth and profitability.
Income Statement
| Income Statement Category | Year 1 (USD) | Year 2 (USD) | Year 3 (USD) |
|---|---|---|---|
| Revenue | |||
| In-store Donut Sales | $180,000 | $230,000 | $290,000 |
| Beverage Sales (Coffee/Tea) | $70,000 | $95,000 | $120,000 |
| Catering Orders | $50,000 | $70,000 | $90,000 |
| Merchandise & Gift Cards | $20,000 | $25,000 | $40,000 |
| Total Revenue | $320,000 | $420,000 | $540,000 |
| Cost of Goods Sold (COGS) | |||
| Donut Ingredients & Supplies | $65,000 | $85,000 | $110,000 |
| Beverage Supplies | $20,000 | $26,000 | $33,000 |
| Merchandise Costs | $11,000 | $15,000 | $19,000 |
| Total COGS | $96,000 | $126,000 | $162,000 |
| Gross Profit | $224,000 | $294,000 | $378,000 |
| Operating Expenses | |||
| Salaries & Wages | $75,000 | $90,000 | $105,000 |
| Rent | $24,000 | $26,400 | $28,800 |
| Marketing & Promotions | $15,000 | $20,000 | $25,000 |
| Utilities & Internet | $6,000 | $7,200 | $8,000 |
| Insurance | $3,000 | $3,200 | $3,500 |
| Office/Admin Supplies | $2,500 | $2,800 | $3,000 |
| Website & Software Subscriptions | $2,000 | $2,500 | $3,000 |
| Maintenance & Repairs | $2,000 | $2,200 | $2,400 |
| Miscellaneous Expenses | $500 | $1,000 | $1,800 |
| Total Operating Expenses | $180,000 | $210,500 | $281,500 |
Cash Flow Statement
| Cash Flow Category | Year 1 (USD) | Year 2 (USD) | Year 3 (USD) |
|---|---|---|---|
| Cash Inflows | |||
| Cash from Operations (Revenue) | $320,000 | $420,000 | $540,000 |
| Initial Investment / Loan | $150,000 | $0 | $0 |
| Other Income (e.g. interest) | $500 | $1,000 | $1,500 |
| Total Inflows | $470,500 | $421,000 | $541,500 |
| Cash Outflows – Operating | |||
| Salaries & Wages | $75,000 | $90,000 | $105,000 |
| Rent | $24,000 | $26,400 | $28,800 |
| Inventory & Supplies | $85,000 | $110,000 | $140,000 |
| Marketing | $15,000 | $20,000 | $25,000 |
| Utilities & Overhead | $9,500 | $11,000 | $13,000 |
| Insurance & Admin | $5,500 | $6,500 | $7,500 |
| Misc. Operational Costs | $3,500 | $5,000 | $6,000 |
| Taxes Paid | $6,000 | $12,525 | $14,550 |
| Total Operating Outflows | $224,000 | $281,425 | $339,850 |
| Cash Outflows – Investing | |||
| Equipment Purchases & Maintenance | $45,000 | $10,000 | $10,000 |
| Interior Renovation | $30,000 | $0 | $0 |
| Software & POS Setup | $10,000 | $1,500 | $1,500 |
| Total Investing Outflows | $85,000 | $11,500 | $11,500 |
| Cash Outflows – Financing | |||
| Loan Repayment | $0 | $10,000 | $10,000 |
| Owner Draw (Distributions) | $0 | $25,000 | $45,000 |
| Total Financing Outflows | $0 | $35,000 | $55,000 |
| Net Cash Flow for the Year | $161,400 | $93,075 | $135,150 |
| Beginning Cash Balance | $0 | $161,400 | $254,475 |
| Ending Cash Balance | $161,400 | $254,475 | $389,625 |
Balance Sheet
| Category | Year 1 ($) | Year 2 ($) | Year 3 ($) |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash & Cash Equivalents | 100,000 | 200,000 | 350,000 |
| Accounts Receivable | 30,000 | 30,000 | 40,000 |
| Prepaid Expenses | 20,000 | 10,000 | 10,000 |
| Total Current Assets | 180,000 | 240,000 | 300,000 |
| Non-Current Assets | |||
| Property & Equipment | 320,000 | 370,000 | 420,000 |
| Less: Accumulated Depreciation | (20,000) | (20,000) | (20,000) |
| Net Non-Current Assets | 300,000 | 350,000 | 400,000 |
| TOTAL ASSETS | 480,000 | 590,000 | 700,000 |
| LIABILITIES | |||
| Current Liabilities | |||
| Accounts Payable | 20,000 | 20,000 | 20,000 |
| Short-Term Liabilities | 80,000 | 60,000 | 40,000 |
| Total Current Liabilities | 100,000 | 80,000 | 60,000 |
| Long-Term Liabilities | |||
| Long-Term Debt | 20,000 | 20,000 | 20,000 |
| Total Liabilities | 120,000 | 100,000 | 80,000 |
| EQUITY | |||
| Owner’s Capital Investment | 200,000 | 200,000 | 200,000 |
| Retained Earnings | 30,000 | 60,000 | 100,000 |
| Net Profit (Current Year) | 130,000 | 230,000 | 320,000 |
| Total Equity | 360,000 | 490,000 | 620,000 |
| TOTAL LIABILITIES & EQUITY | 480,000 | 590,000 | 700,000 |
Funding Requirement
To support the successful launch and early growth of CraveGlaze Donuts, we are seeking $150,000 in startup funding to cover essential startup costs, establish strong market entry, and ensure operational stability during the initial growth phase.
| Use of Funds | Estimated Cost (USD) |
|---|---|
| Kitchen Equipment & Fixtures | $45,000 |
| Interior Renovation & Café Design | $30,000 |
| Initial Inventory & Supplies | $20,000 |
| Marketing & Launch Campaign | $15,000 |
| Technology & Operations | $10,000 |
| Working Capital (3 Months) | $30,000 |
| Total Funding Required | $150,000 |
Download Free Donut Shop Business Plan Template
Ready to craft your donut shop business plan from scratch but need a little guidance? We’ve got just what you need! Download our free donut shop business plan template (PDF) and kickstart your journey today.
This investor-ready template offers clear, step-by-step instructions and real-world examples to help you build a powerful, effective business plan. Best of all, it’s fully customizable to reflect the unique flavor and vision of your donut shop.
Conclusion
Now that you understand the key sections of a donut shop business plan and how to organize them, writing your own plan should feel much easier.
However, if you're unsure about the specifics or looking for a simpler way to put your plan together, consider using our AI-powered business plan creator. It makes the process easier and helps you build a professional-looking business plan in just minutes.
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Frequently Asked Questions
Do I really need a business plan if I’m starting a small donut shop?
Yes, having a business plan is crucial for your donut shop. It helps outline your goals, shop location, menu, pricing, target customers, marketing strategies, and daily operations. A well-prepared plan is also key when applying for funding or equipment financing, as lenders will want to understand how your shop plans to grow and remain profitable. Most importantly, it helps you stay focused and build your business in an organized and sustainable way.
What are the most effective ways to promote your donut shop?
Here are a few effective ways to promote a donut shop:
- SEO-optimized website
- Google My Business
- Social media marketing
- Paid advertising
- Referral programs
How will you attract investors to your donut shop business plan?
Consider following these steps to attract investors to your donut shop business plan:
- Draft a clear and compelling executive summary
- Conduct thorough industry and market research specific to donut and café businesses
- Highlight unique value propositions like fresh, handmade donuts, specialty flavors, or a cozy local atmosphere
- Include a strong marketing plan to reach local customers, coffee lovers, and social media followers
- Develop realistic financial projections based on foot traffic, average sales, and growth potential
Are there any licenses or permits required to launch a donut shop?
You may need these licenses and permits to start a donut shop:
- Business license
- Zoning permit
- Building permit
- Fire safety permit
- Health permit)
- Food Handler Certification
How long does it take to create a complete donut shop business plan?
Writing a business plan for a donut shop can take anywhere from a few days to several weeks, depending on how detailed you want it to be and the purpose of the plan. However, using well-designed templates or business planning software can make the process much easier and save time by organizing everything into clear, structured sections.
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