Sweet Business: Donut Production

Food industry Confectionery

At a time when semi-finished products dominated the market, fresh and natural products are in great demand among consumers. Buyers are not even scared away by relatively high prices. As market research shows, people are willing to overpay for the quality and taste of "home" food. The same applies to such confectionery products, familiar to many of us from childhood, like donuts.

Currently, on the Russian market, these products are mainly presented in two forms: frozen donuts, which are simply warmed up before sale, and donuts from foreign semi-finished products. And in that, and in another case, the taste of donuts is very different from home baking. And not for the better.

Therefore, making donuts can be a great idea for creating your own business. However, before making a final decision and proceeding with the search for investors, carefully study the market, analyze demand, evaluate all the advantages and disadvantages. On the Internet you will find a large number of articles about the donut business. The authors of most of them assure that the cost of opening a retail outlet where donuts are supposed to be sold is small - up to 600 thousand rubles, and the profitability of this business exceeds 100%! Consumers, as stated in these articles, are nostalgic for Soviet times, when donuts were produced on an industrial scale and sold in numerous bakery shops. Therefore, undoubtedly, buyers will enthusiastically accept the numerous points for selling fresh donuts at an affordable price, therefore, the authors conclude that this business has excellent prospects and opportunities for development.

In fact, the future of the enterprise for the production and sale of donuts is not as rosy as it seems at first glance. To begin with, the segment of bakery and confectionery products is developing very rapidly, and the competition here is very high. Just finding your narrow niche and presenting the widest possible range of high-quality products is no longer enough to get around the many competitors who have been working in this market for a long time. In various business plans, there are three main types of donut trade: on the street (in mobile car stalls), in shopping centers in a "narrowly themed" cafe. A cafe where only donuts are sold, as well as various types of drinks, can hardly be regarded as a serious business idea. To make such an institution profitable, the assortment of confectionery and bakery products should be much wider, and not limited to donuts only. The format of trade in a car stall is of great interest. Numerous large fast-food chains using mobile stalls bring good returns. However, in this case the question arises whether such a network can hold out on a single product. Like pancakes, donuts have a diverse filling. But unlike the first, there are not so many options for the fillings of confectionery: chocolate, cream, caramel, berry, more exotic types - coffee, jelly, etc. It is impossible to imagine donuts stuffed with meat or cheese. All this significantly narrows your target audience. And if you take into account the fact that women prefer sweets, most of whom at the same time try to follow the figure, then high-calorie and, frankly, not very useful donuts are not the most popular product in the assortment of a street fast food stall. Compared to other bakery and confectionery products, donuts have a serious drawback: it is advisable to eat them warm. Moreover, even after repeated heating, donuts often lose some of their taste properties. In addition, people prefer to eat sweet products with tea or coffee, which is difficult to do on the go.

For this reason, the point of sale of donuts in a large shopping center in the format of a mini-cafeteria (with tables and chairs) is the best option, which is overshadowed only by the refusal of many stores to place such a production on its territory. Fryers in which donuts are baked give a strong offspring and an unpleasant odor to the oil (especially if it is reused for reasons of economy). As a solution to this problem, donut manufacturers are installing on the extraction point, but this option is not optimal. A powerful hood is too expensive, and budget models do not allow you to completely get rid of the child.

Installing a car stall with everything necessary for baking donuts equipment (dough mixer, proofing for dough, deep fryer, etc.) will cost about 250-300 thousand rubles. There are cheaper options, which, however, are less efficient. Such mobile bakeries can produce over 150 donuts per hour. To service a small point, two or three people per shift are enough. Opening a trading pavilion in the store will cost at least 350-400 thousand rubles, and then subject to the purchase of Russian-made equipment in the basic configuration. Count on the fact that the total amount will be an order of magnitude higher, because in any case you will have to buy up some of the equipment (a dispenser for a filling of one type will cost 100 thousand rubles, and there can be about ten types of fillings).

With all the minuses of opening a point of sale for selling only donuts, this format has certain advantages. Manufacturers of equipment and its distributors provide customers with the necessary technological maps, production recipes and training materials. For an additional fee, you can consult a supplier’s technologist who will train your staff in the bakery.

Some domestic entrepreneurs have chosen a different format for conducting a “donut” business - a confectionery shop. They produce donuts, but at the first stages they don’t sell them on their own, but deliver them to various cafes, restaurants and shops. The main requirements for such products are: freshness, excellent taste, attractive appearance of each product and original packaging. For baking donuts, you can use special automated equipment, which includes a dough mixing machine, deep fryers with built-in proofers, dividing and rounding machine, filling dispensers, mixer, enrobing machine. Automatic equipment allows you to minimize time costs and minimize manual labor. True, there is such a full-cycle line with a productivity of 700-800 donuts per hour at a very expensive price - about 2.5-3 million rubles. Add to this the cost of equipment for storing raw materials (cold storage) and finished products. In addition, to accommodate such a line will require a room of at least 30 square meters. meters. The total area of ​​the confectionery shop, taking into account warehouse and utility rooms, will be about 100 square meters. meters. The main conditions are the availability of sewage, water and electricity.

In addition to the high costs, there is another drawback of this production option: in this case, the finished donuts will be more similar in appearance and gustatory quality to the crumpets. The second production option involves only partial automation of the donut making process. It turns out to be more expensive both in production time and in human resources. But it allows you to significantly save on equipment: it can be assembled "in parts", which will be significantly cheaper than buying a finished line. Of course, the productivity in this case will be much less, but quite sufficient for the first year or two of your work. At this production, donuts of several types (from five to ten) are produced in various price categories. The main raw materials for making donuts are flour, margarine, eggs, sugar, yeast (plus ingredients for making fillings, glazes, fillers).

Donuts can be delivered to various pastry shops, restaurants, coffee houses, cafeterias. The manufacturer sets the purchase price and the minimum batch of products per purchase (for example, 50 donuts for two days). At the same time, the retail price at which donuts are sold directly in the cafe is not regulated in any way. The only requirement donut manufacturers have for their partners is to keep the brand name on their products. To do this, use branded napkins, flags, markers that are stuck in donuts, which are sold individually, or packages with corporate design and manufacturer contacts when buying donuts by weight.

Such companies also work with end users, but mainly through the Internet. They are actively engaged in promotion on social networks, take orders through their own website. The minimum order size is usually from six pieces (so many donuts are placed in one cardboard box). With a certain order quantity, donuts are delivered free of charge.

To organize such a confectionery will require from 1.5-2 million rubles. This amount includes the rental of premises, equipment, the purchase of raw materials, the development of the site, the manufacture of packaging (paper bags, cardboard boxes, plastic containers), printing labels, stickers, marking flags, business cards or leaflets. Be prepared to pay production costs during the first 2–3 months of operation, until your company starts to generate a stable income sufficient to cover costs. With the production and sale of about 1000 donuts per week, the company's profit will amount to 200 thousand rubles. At first, you can work at the factory on your own, but later you will need bakers and confectioners who will work in shifts (the bakery works 18-20 hours a day). Also, you can not do without a technologist (part-time production manager). Try to constantly expand the range of your products through the introduction of new fillings and fillers. With the production and sale of 1000 donuts a day (which is quite possible, but only on a large city scale with a population of over a million people), your company’s turnover will be about one million rubles a month.

One of the directions of further development of the company may be the opening of its own distribution network.

Liliya Sysoeva

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