Here’s an article on today’s news.com.au website regarding the dying fad of the doughnut. It says that the doughnut business is niche and that the smaller businesses are dying. True to an extent.
What they don’t mention is that the product of the dying businesses aren’t as good as others. I guess they’ll never admit to that.
It’s suggested without clear self-blame that their business model isn’t right for the changing times. That no one wants to spend $7 on a doughnut. And that people are becoming more health conscious.
As quoted in the article: “I’d say 50 per cent or so [of the industry woes] is due to the retail trends and I’d say the other side is possibly the health-conscious side,” said Geoff Bannister, founder of Sydney’s Dr Dough Donuts.
Retail trends and health consciousness. I think they’re looking for excuses.
As with any business, it’s important to adapt and do it correctly. That’s why the brands in supermarkets and service stations are surviving (despite inferior products). As mentioned in the article, Krispy Kreme adapted and thrived.
Doughnut Time is in Ampol service stations. I’m yet to have a fresh doughnut there. Their original business model was plainly wrong from the start.
An interesting reference is Donut Papi. They started at markets before opening in Redfern then made the move to Marrickville. That’s when things started to go bad and they will soon be closing the brand. I think the problem was that their doughnuts weren’t really as good as they’d like to think. Same with their service. I was disappointed every time I went there. Admittedly, I never made it to the Marrickville store, but I did see them at Redfern and at events like the Easter Show and the Good Food & Wine Show. The service was ordinary. Compare them with the doughnuts at Grumpy Donuts, LA Donuts, Berliner Bakery and Specialty Doughnuts and I believe you’ll see what I mean.
Let’s hope that the good doughnut stores and market operators survive the decline of this ‘hipster fad’.
DomNuts 