Opening a donut shop can be a profitable business idea. The startup costs of a donut shop may be cheaper than other types of restaurants. A donut shop doesn't take a large staff to operate and supplies are relatively inexpensive. Buying into a franchise is one way to open a donut shop. However, it's possible to open your own shop without being part of a franchise.
Select a location with a high level of traffic. Determine what competition you have in the area. For example, a great location that already has a nearby donut shop and coffee shop probably isn't a good idea.
Obtain a business license. Contact your city government to determine the type of license you need. The license may vary depending on what food and beverage items you're selling and the size of your establishment.
Get recipes. There are dozens of types of donuts you can add to your menu. Decide if you also want to add other pastries such as scones and brownies. Consider what types of beverages you'll serve.
Include healthy options. Donuts aren't the healthiest of foods. To attract additional customers consider adding healthier options to the menu such as muffins made from whole grains or low fat pastries. Provide nutritional information on menu items.
Offer something unique. You'll be competing with other donut businesses that may be part of a franchise. Have something your donut shop is known for. For example, offer specialty coffee drinks or smoothies.
Consider hiring a business consultant to help you get started. A consultant is especially helpful if you have limited business experience.