Donut King Franchise Business for Sale in Allenstown, QLD 4700
The Opportunity
Establish your business future with Donut King in Allenstown, a growing suburb of Rockhampton, Queensland. Located in a well-established retail centre, this territory offers access to a steady stream of local residents and visitors from surrounding communities. As Australia's largest specialty donut retailer, Donut King provides comprehensive training, proven systems, and ongoing operational support to help franchise partners succeed in the quick-service restaurant sector. Send an Enquiry to Donut King via Hattch Today!
Company overview and history
Company History
Donut King has established itself as one of Australia's leading donut and coffee retailers. The brand began its journey in the Australian market with a focus on creating fresh, quality donuts and beverages for customers across the country. Their commitment to quality and consistency has helped build a strong presence in the Australian food retail sector.
Growth and Development
The brand has expanded significantly through its franchise business model, offering opportunities for entrepreneurs to join the Donut King network. With an investment range of $415,000 to $625,000, the franchise system has enabled steady growth across various locations. The company has focused on establishing stores in high-traffic areas such as shopping centres and retail precincts.
Current Status
Today, Donut King operates as a well-established franchise network throughout Australia. The brand continues to maintain its position in the café and food retail sector through its comprehensive franchise support system and proven business model. Their stores offer a diverse menu of donuts, beverages, and complementary products to meet evolving consumer preferences.
Product/service offerings
Overview
Donut King is a well-established quick-service food retail franchise specialising in freshly baked donuts and complementary beverage offerings. The brand operates throughout Australia's major shopping centres and retail precincts, serving both eat-in and takeaway customers.
Key Offerings
The core product range includes fresh donuts, which are baked daily on-premises using proprietary recipes and techniques. The menu features both traditional favourites and seasonal specialties, complemented by a comprehensive hot and cold beverage selection including coffee, milkshakes, and frozen drinks.
Additional Services
Donut King locations offer catering services for special events and corporate functions, with bulk ordering available for larger quantities. Franchisees receive access to exclusive recipes and operational systems developed over decades in the Australian market, along with comprehensive training in food preparation and retail management.
Image Gallery for Donut King
Target market and industry trends
Market Analysis
The quick-service food and beverage sector in Australia continues to show steady growth, particularly in shopping centres and high-traffic retail locations. Donut King's target market includes families, students, and busy professionals seeking convenient treats and beverages during shopping trips or daily commutes.
Trends
The Australian cafe and snack food industry is experiencing increased demand for premium coffee offerings and artisanal baked goods. Consumer preferences are shifting towards establishments that can provide both quality beverages and fresh food items in convenient locations with consistent service standards.
Opportunities
Shopping centre locations remain a key growth driver for food retail businesses in Australia, with steady foot traffic and established customer bases. The combination of donuts and coffee creates multiple revenue streams, while the growing breakfast and morning tea segments present additional trading opportunities for franchisees.
Initial investment required (franchise fee, setup costs)
Initial Franchise Fee
- $50,000 + GST for new franchisees
- Reduced to $30,000 + GST for FY 2025
- Includes rights to operate franchise for 5 years
- Covers use of trademarks, operating systems and products
Build and Equipment Costs
- $350,000 - $450,000 + GST estimated range
- Costs determined by projects team and shopfitter quotes
- Varies based on site location and negotiated terms
- Potential landlord contributions may reduce total costs
- Working capital requirement: $10,000 - $30,000 + GST
Ongoing fees (royalties, marketing fees)
Franchise Service Fee
- 7% of total gross revenue per week
- Minimum payment of $400 per week, whichever is greater
- Provides access to operating systems, trademarks, and ongoing operational support
- Includes support from field operatives for front/back of house operations, coffee, and food quality
Marketing Fee
- 3% of total gross revenue per week
- Minimum payment of $200 per week, whichever is greater
- Funds national and local area marketing campaigns
- Supports customer visitation initiatives and brand development
- In 2021, marketing campaigns drove over $30 million in additional network sales
Training and support provided to franchisees
Initial Training
New Donut King franchisees receive comprehensive initial training at our dedicated training centre. The training programme covers all aspects of store operations, including product preparation, customer service, and business management fundamentals. Franchisees complete a structured 4-week training course before store opening to ensure they are fully prepared to operate their business.
Ongoing Support
Donut King provides regular field support visits from experienced franchise business consultants to help franchisees maintain operational standards and grow their business. Franchisees receive ongoing access to our operational support team and benefit from regular updates to training materials and operational procedures. The support system includes assistance with local area marketing, product development, and business performance analysis.
Location requirements and territory information
Store Format Options
- Inline stores: 35-40 square metres
- Kiosk format: 26-30 square metres
- Two flexible store formats available to suit different locations and spaces
- Both formats designed for optimal operational efficiency
Target Location Types
- Primary focus on B, C & D grade shopping centres
- Positioned strategically to reach mass market consumers
- Currently over 195 stores across Australia
- Locations selected to serve everyday Australians
Store Design & Layout
- Modern, distinctive pink branding and store design
- Purpose-built layouts for both inline stores and kiosks
- Standardised equipment and fit-out requirements
- Designed for efficient product preparation and service
Site Selection Support
- Dedicated projects team assists with site evaluation
- Professional guidance on location assessment
- Support with landlord negotiations
- Potential landlord contributions available for fit-out costs in some locations
- Assistance with lease negotiations and terms
Franchisee qualifications and experience required
Core Requirements
- No prior food or beverage experience required
- Must complete comprehensive training at Retail Food Group's Gold Coast training academy
- Ability to operate a simple business model focused on core product lines
- Commitment to maintaining consistent quality standards
- Willingness to follow established operating systems and procedures
Support & Training
- Complete mandatory state-of-the-art National Training Academy program
- Participate in ongoing support and development opportunities
- Work with dedicated field operatives who support:
- Utilise provided marketing and local area campaign support
- Engage with loyalty program and customer retention initiatives
Current number of locations and expansion plans
Current Network Size
- Over 195 stores across Australia
- Established presence since 1981 with the first distinctive pink store
- Multiple international locations
- Primarily located in B, C & D grade shopping centres
Growth Strategy
- Focus on strategic placement in high-traffic shopping centres
- Multi-site expansion opportunities available for existing franchisees
- Proven business model with established systems and support
- Ongoing development opportunities for franchise partners
Unique selling propositions and competitive advantages
Market Leadership and Brand Heritage
- #1 donut franchise in Australia with over 40 years of market presence
- Network of over 195 stores across Australia with international expansion
- Established in 1981 with distinctive pink-branded stores
- Positioned as Australia's favourite donut destination for everyday consumers
Operational Advantages
- Simple business model requiring no prior food/beverage experience
- Comprehensive training at Gold Coast National Training Academy
- Dedicated field support team for operations, coffee, and food quality
- Two flexible store format options:
- Inline stores (35-40sqm) - Kiosk format (26-30sqm)
- Strong supply chain leverage through Retail Food Group's buying power
Customer Engagement and Marketing
- Award-winning coffee program with loyalty rewards system
- Successful digital loyalty app with over 100,000 customers
- Proven marketing capabilities:
- Generated $30 million in additional network sales through 150 marketing campaigns in 2021 - Mix of national and local area marketing support - Regular product innovations and promotions
- Multi-product offering including donuts, coffee, shakes, hot dogs, and sundaes
- Boxed donut strategy driving higher transaction values through 4, 6 and 12-pack offerings
Challenges and potential risks for franchisees
Market and Competition Challenges
- Located primarily in B, C & D grade shopping centres, creating exposure to fluctuating foot traffic
- Operates in a highly competitive quick-service food sector
- Must maintain competitive pricing while managing rising operational costs
- Requires ongoing adaptation to changing consumer preferences and health trends
Business Model Dependencies
- Success tied to shopping centre performance and location demographics
- Required adherence to standardised operations and procedures
- Need to maintain consistent staffing levels in a casual workforce environment
- Dependent on effective execution of national marketing campaigns
- Must achieve sufficient sales volume to cover fixed costs and fees
Testimonials or success stories from current franchisees
Proven Business Model Success
Garry Spring - Owner of Booval, Mt Ommaney and Clifford Gardens stores
"The parent company, Retail Food Group, is totally focused on supporting us franchise partners. I cannot speak highly enough of the company. While our coffee has improved, we have kept the family favourite donut ranges with a renewed focus on driving average transaction values through boxed donut sales. We now have a range of donuts that merits customers purchasing 4, 6 and 12 packs — which means we can keep our retail prices affordable whilst still driving growth."
Key Success Metrics
- Over 195 stores across Australia and international locations
- 40+ years of proven business success since 1981
- $30 million in additional network sales generated through marketing campaigns in 2021
- 100,000+ customers on loyalty platform since 2020 launch
Application process and next steps for interested parties
Application Steps Overview
- Initial Enquiry - Hit the Enquire button to contact the Donut King franchise team and receive the Franchise Information Pack
- Formal Application - Submit required documentation and information
- Video Interview - Initial screening interview with franchise team
- In-Store Experience - 2-day practical experience in an existing store
- Business Plan - Prepare and submit detailed business plan
- Panel Interview - Formal interview with senior franchise executives
Final Approval and Launch
- Legal approval process
- Franchise agreement signing
- Store build and fit-out
- Opening day preparation and launch
- No prior food or beverage experience required
Other nearby franchises
Franchise Overview
Number of Franchises:
198
Number of Franchise Locations:
171
Number of Corporate Locations:
27
Franchise Partner Type:
Owner Operator
Opportunity Type:
New Franchise
Investment Range:
$300K - $500K
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Brand Name
Hattch Score Summary
Assessment Completed:
2024-01-01
Culture determines the environment, strategies and practices that inspire and engage employees and you as a franchisee to perform optimally and is important to wider company morale and maintaining good relationships.
Great performance happens when cultural attributes are closely aligned with and support both the franchisor’s and franchisee’s goals. A culture that is congruent and clearly communicated provides endless benefits to everyone in the franchise organisation including greater effectiveness and brand equity.
A company that shares your cultural preferences will prove more compatible and help you reach your performance potential.
Matching your core values with a franchise's core values creates compatibility and harmony. Having shared values provides a solid foundation for a long-term business relationship.
Like-minded people have a basis for understanding, communicating and exercising judgment. Values alignment builds strong brand recognition.
Our research and that of others, show that there is a strong link between financial performance and values alignment. When the values of an organisation are in alignment with the aspirational values of you as a franchisee, the result is high performance.
For greatest satisfaction and effectiveness, you should seek a work or business environment consistent with your natural working tendencies.
Work Style translates into how you will delegate, direct, motivate, manage, evaluate and resolve day-to-day business situations.
Work Style is particularly important for you as a franchisee, as you will be held responsible for aligning your business with the pace, priorities and direction the franchise outlines for the system.
Stages of Growth are determined by a company's managerial style, organisational structure, formal systems, major strategic goals and founder/owner involvement.
As a franchise organisation grows, the systems and procedures will adapt to support an evolving business model, the needs of the franchisees and to satisfy end-user demands.
Within each stage of business, your skills and goals as a franchisee need to complement a franchisor's plans and market expansion strategies. A franchisee that is in-step with the franchise organisation's Stage of Growth will prove more compatible and likely perform better.
Your business skills and competencies are important. More important however, is how those competencies complement those a franchise is looking for to achieve high performance.
Having complementary skills and competencies provides a framework for forming collaborations between you and a franchisor. It reduces redundancy, makes wiser use of resources, provides points of correspondence and thus leads to greater value, compatibility and performance.
