Donut King Franchise Business for Sale in Seven Hills, NSW 2147

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.

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.

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 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

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

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.

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

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

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

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