Doughnut Holes to Dollars: Expanding Your Real Estate with Sweet Franchises

Pundits declaring the death of brick-and-mortar retail ignore an inconvenient fact: Franchises have kept up some brisk annual growth in recent years, and The number of franchise establishments is projected to grow by 1.6 percent, to upwards of 745,000 this year. That kind of expansion appeals to shopping center landlords, as do franchise brand recognition, stable cash flow, well-established audiences and other favorable retail characteristics. The Doughnut Business has been booming.

The booming donut market is driven by a massive shift toward premium, artisanal options and viral social media marketing.

Premiumization & Artisanal Flavors: Consumers are willing to pay top dollar for gourmet ingredients, creative flavor profiles (like Crème Brûlée and Chai Spice), and experiential dining.

• Social Media Influence: Bakeries with strong Instagram and TikTok strategies see up to 60% higher engagement, which directly translates to foot traffic.

• The "Drop-In" Model: Made-to-order and customizable donut bars continue to perform incredibly well compared to standard mass-produced options.

Here are some of the top Donut Chains:

Dunkin- 14,128 Locations

Tim Horton- 5202 Locations, 3894 Canada, 631 USA

Krispy Kreme- 1910 Locations

Shipley Do-Nuts- 381 Locations

Duck Donuts- 161 Locations

DonutNV- 148 Locations

Randy's Donuts- 48 Locations

Los Angeles is widely known as the donut capital of the United States, and this phenomenon primarily comes down to an incredible piece of cultural history alongside unique local food culture. 

The explosion of donut shops in L.A. largely began in the 1970s and 1980s. After fleeing the Khmer Rouge in Cambodia, many refugees arrived in Southern California. A pioneer named Ted Ngoy, often dubbed the "Donut King," learned the trade and went on to sponsor thousands of other Cambodian immigrants to start their own shops. This created a tight-knit, generational network of family-owned and operated businesses.

Here are the Favorite Donut Shoppes as Per REWI Members:

The Donut Man, Glendora

Sidecar Doughnuts, Santa Monica

Donut Hut, Burbank

Monarch Donuts, Arcadia

Randy's Donuts, Inglewood

Primo's Donuts, (Sawtelle), Los Angeles

Dad's Donuts & Bakery, Burbank

Kettle Glazed Doughnuts, (Franklin Avenue), Los Angeles

SK Donut & Crossiant, (W 3rd Street), Los Angeles