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Donut stall - is it a risk?

by Stuart
(Coventry)


I'm thinking of buying a donut stall to use as an extra source of income. My son and I could work it at the weekends, events etc.. However, is the demand enough to justify the outlay? I always huff and puff and the small ones you get these days, 3-4 measley donuts for £1-2ish. I'm sure I could get that price down and sell more with options and hot/cold drinks too depending on the seasons.

Thoughts and experiences would be greatly appreciated.

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Jan 13, 2025
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starstarstarstarstar 		Running a Donut Stall
by: David-

That sounds like a great idea! Running a donut stall with your son could be a rewarding way to earn extra income while spending time together, especially if you enjoy the buzz of events and serving people. Let’s break it down and look at demand, costs, and how to make it work for you.

1. Is There Enough Demand for a Donut Stall?
Yes, but it depends on location and events. Donuts are a popular, low-cost treat that sell well at family-friendly events, markets, fairs, and festivals. People love the combination of freshly made, warm donuts and the sweet smell they create—it’s an easy impulse buy.

Consider the types of events you’d attend. Big festivals or busy markets often guarantee higher footfall, but smaller events can still bring steady sales if you’re the only vendor offering donuts.

Seasonal demand is also worth considering. Winter markets and Christmas events often boost sales, especially when paired with hot drinks like coffee or hot chocolate. In summer, cold drinks and light snacks could complement your offering.

2. Pricing: Can You Beat the Competition?
Offering better value than your competition is a solid plan, but remember not to underprice yourself. The cost of ingredients for donuts is relatively low, so you can maintain a good profit margin while keeping prices reasonable.
For example, freshly made mini donuts can cost you around 10p–15p each to produce. Selling them at £1 for 5 donuts leaves you with a decent profit while still feeling like good value to customers.
Adding options like toppings (chocolate sauce, sprinkles, cinnamon sugar) or combos with drinks can also increase your sales and profit margins. For instance, a "hot drink + donut combo" could sell for £3–£4.

3. Costs and Outlay: What’s Involved?
Buying the stall/equipment: A second-hand donut setup (machine, stall, and basic equipment) can cost anywhere from £2,000 to £5,000, depending on quality and size. Factor in some additional startup costs for branding, signage, and packaging.

Running costs:

Ingredients like flour, sugar, oil, and toppings are affordable and readily available.
Gas or electricity for the fryer, depending on the type of machine you use.
Event fees, which vary by size and location—this can be £20 for small markets or £200+ for larger festivals.

Insurance (public liability and product liability) and food hygiene certifications are essential and relatively affordable.
Break-even point: To justify the initial outlay, calculate how many donuts you’d need to sell each weekend. For example, if your average profit is £50–£100 per small event, it might take 30–50 weekends to recoup the cost of a £3,000 setup. Larger or busier events could shorten that time significantly.

4. Benefits of Adding Drinks

Adding hot and cold drinks to your menu is a great idea, especially since drinks usually have high profit margins.
In colder months, hot chocolate, tea, and coffee pair beautifully with warm donuts. In summer, iced coffee, soft drinks, and slushies could be popular.

Consider the space and equipment needed for this—coffee machines or coolers will take up space, but the return on investment could be worth it.

5. Things to Keep in Mind

Time Commitment: Running a stall can be hard work, especially at busy events. You’ll need to be prepared for long days, standing for hours, and managing stock and customers.
Competition: Research your local area to see how many similar stalls exist. If you can offer better value, more options, or a friendlier vibe, you’ll stand out.

Health and Safety: Ensure your stall meets food hygiene standards and that you and your son get food hygiene certifications. Your local council will guide you on this.

My Experience and Advice

Donut stalls tend to do very well at events with families, as parents are often happy to treat their kids to an affordable snack. The smell alone can attract people to your stall! You can boost your profits by being creative with toppings and offering seasonal themes, like "Halloween donuts" or "Christmas specials."

Starting small, with a couple of events to test demand, is a smart way to dip your toe in without overcommitting financially.

If you approach it thoughtfully, a donut stall could be a fantastic way to earn extra income and have fun doing it. It sounds like you’ve got the right mindset to offer good value and a great experience. Wishing you lots of luck—go for it, and enjoy the journey! 🍩

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