Mini Doughnut Franchise Seeking Single-Unit and Multi-Unit Owners

As boys, franchise veterans Jeff and Brian Pappas grew up going to Schultz’s farm in Armonk, NY to grab a hot fresh doughnut. The line would always be around the building no matter what time of day. They’d buy a dozen doughnuts and before they got back home they’d be gone. Schultz’s farm is no longer around but the memories of those incredibly fresh doughnuts remained.

Fast forward to 2015 when Brian and Jeff decided to find a business partner who was already running this business (hot mini doughnuts) successfully. They discovered Gabriel Wiesen and Jimmy Nuccio of Beavers Coffee & Donuts, who had been operating an award winning mini doughnut business in Chicago for 4 years. They got together and all shared this incredible passion for fresh doughnuts made to order. The four of them soon decided to join forces and establish “The Dapper Doughnut” to launch an aggressive national and international single and multi-unit owner franchise program targeting upscale high volume malls, hotels, sports arenas, strip malls, etc. In addition to their franchising efforts, the Pappas brothers along with Gabriel and Jimmy will be opening corporate units in major hotels/casinos in Las Vegas and other locations around the U.S.

Combined, the Pappas brothers have over 60 years experience in the franchise industry as franchisors, having developed several very successful franchise concepts. As a result of this extensive franchisor experience, Brian and Jeff recognize the importance of establishing a strong franchisee support system.

Jeff Pappas, COO stated, “If you don’t have happy franchisees making money the brand will go nowhere, and that’s why we focus tremendous fire power on support. This support takes our owners from ground zero to opening day and beyond of course. We offer both operational and marketing support from the get-go. In this era of digital marketing that has become very sophisticated, we recognize that most owners are not going to have that skill set, so we provide not only the knowledge of how to run a successful, ongoing digital marketing program, but we also set it up for them and monitor it very closely.”

Laura Abel, the Company’s CMO has remarked: “We certainly recognize the importance to select the best technology platforms at the corporate level that tee us up to deliver the Big Data available today. The analysis of this data will enable us to make the best business decisions for our franchisees. In addition, franchisees will receive cutting edge digital and integrated media marketing training, navigation and ongoing best practices. These tools are dynamic, as the digital media landscape is in a constant state of evolution. Our ultimate goal is to help guide their businesses for long term success at their local community levels. It’s the consumer who drives business with digital and social media channels today. Engagement and conversions are our key metrics. We have a highly experienced and skilled staff who are dedicated to the success of every franchisee. Furthermore, the Company has made a significant investment in its branding which is reflected in the website, design of the retail units (200 sq. ft. and 1200 sq. ft.), food truck, packaging and more.

Brian Pappas stated: “Our branding brings a fresh modern spin on mini doughnuts. We feel the thought that went into creating this brand will really pay off.”

The Dapper Doughnut™ franchise model incorporates several profit centers, and all are included in one franchise fee:

    • Retail location, which can be as small as 200 square feet or smaller using our kiosk (for high traffic areas such as train stations, airports, malls, etc.), and up to 1200 square feet for operating in strip malls;
    • Food truck which can be eighty percent financed in most cases;
    • Catering. Brian Pappas, CEO stated: “It was the catering component that sold me on wanting to develop this franchise model.  When I discovered from talking with the Beavers Coffee & Donuts owners, Gabriel and Jimmy, that they were generating hundreds of thousands of dollars a year from catering I was sold on this concept.  Weddings, corporate events, bar/bat mitzvahs, private parties, charity events and more really makes this a great business opportunity whether it’s a retail unit or a food truck.”

Metrics of The Dapper Doughnut™ Franchise

The “doughnut industry” is a billion dollar business with many well-known players. However, most competitors offer traditional sized doughnuts and large footprints. The Dapper Doughnut™ doughnuts are mini doughnuts and the number of competitors offering mini doughnuts in the market place compared to traditional size doughnuts is minuscule, which presents a great opportunity for The Dapper Doughnut™ franchisees. In addition to this, the food cost (excluding packaging) averages below 10%, which is virtually unheard of in the food and beverage industry.

Considering that the cost to make a mini doughnut is less than $.03 and the average retail/food truck price of the mini doughnut is around $.60, one can easily see that the profit margins are incredible. The average cost for a mini doughnut for catering orders is lower than $.60, but the volume is significantly higher. “It is not unusual to fulfill an order of 1000 doughnuts or more,” says Gabriel Wiessen.

As stated above, the Company is seeking both single-unit and multi-unit owners. The Company began franchising in July of 2016 and currently has 7 franchisees with several area developer deals in the pipeline, including a five-unit deal with a hotel chain,  and at least 3-5 more single unit franchisees that the Company expects to close before the end of April.  The Company expects to open its first corporate location in a major hotel/casino in Las Vegas in May of this year. For more information about The Dapper Doughnut contact Brian Pappas at 904-825-0873.

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