Business Profiles

by Donut King

last updated 23/06/2021

Birthday Treat

by Donut King

last updated 23/06/2021

Donut King celebrates 10 years in New Zealand with opportunities in Auckland and beyond

Everyone deserves a treat, and nothing brings joy like donuts,’ says Craig Watson, the New Zealand master franchisee for Donut King. With over 6 million donuts sold here since 2011, you can’t argue with that.

‘After last year’s lockdown, our stores rebounded quickly. People love donuts, and if they have to stand two metres apart to get them, they will. We also introduced online ordering for home delivery, with classics like chocolate rings and custard-and-jam filled donuts being especially popular. It’s not a big part of our business but it’s another add-on and, overall, sales have been really strong. This is a very resilient business model.’

Donut King was established in Australia in 1981 and has over 300 stores there and 5 in NZ offering freshly-baked products from cinnamon donuts to iced cakes, glazed and novelty items. ‘Then there are hot dogs, ice creams, drinks and character birthday cakes from Disney, Pixar and Marvel to ensure we have something for all seasons and all ages from 3 up to 70-year-olds who want a nice treat and a coffee,’ says Craig. ‘Put those in the right location and the business can fly!’

Right location, right deal

After 28 years in senior management in the shopping centre industry, Craig knows all about getting the right location – and the right deal. ‘That can make a big difference. The investment for a fully-equipped turn-key kiosk is around $300,000 +gst but with landlord contributions, it’s possible for $200,000 in some places, and some of that can be financed.

‘That includes finding the site, lease negotiation, design, council and franchise fees, fit-out, equipment and all the training you’ll need to be able to run a highly profitable business. We also provide opening support to ensure you get off to the best possible start then, as you build up volume, your fixed costs remain the same while your profitability grows and grows.’

One store or more?

Having proven the model in both the South and North Islands, Craig is now seeking franchisees for key locations across Auckland and other centres. ‘You’ll need good communication skills to befriend customers and handle staff, but you don’t need baking experience.

‘We provide all the training you need to cook and present the product properly, with systems that make it a very easy business to manage – most franchisees employ a baker so they can concentrate on customer service and the financial side rather than doing the baking themselves.

‘And once you are established, the opportunity also exists to own additional stores. Some of our Australian franchisees are operating up to four or five units and doing very well out of them indeed,’ says Craig. ‘We’d love to discuss the opportunity with you, so contact us to find out more.’   

See this advertorial on page 32 of Franchise New Zealand magazine Year 30 Issue 1

Contact details for Donut King

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