Innovations in Mister Donut business model ensure profit

MANILA, Philippines — Mister Donut continues to innovate its business model to help ensure its franchisees are optimizing the profitability of their stores even in this time of pandemic.

This constant search for fresh concepts also allowed the country’s top doughnut chain to remain one of the top investment choices of entrepreneurs in the Philippines, with 106 new franchised stores opened last year even at the height of the pandemic.

“We have a proven track record in the franchising business. Our 38 years in the industry saw constant innovations and agility, and this was evident in how we pivoted the Mister Donut business format in response to set health protocols and community quarantines,” said Cherryl Carino, franchise management head at Mister Donut.

With the movement of people restricted since March 2020, the company vigorously pushed the “Mister Donut on Wheels” concept, which gave franchisees the opportunity to sell straight to the communities via their Mister Donut stores mounted on L-300 vans, multicabs, trikes, e-bikes, racals, and buddy trailers.

Originally meant to complement a franchisee’s physical store, Mister Donut on Wheels became an independent business format because of its capacity to go where customers are and sell doughnuts, baked goods, coffee mixes, bottled water and frozen meal items that are ready to cook or ‘just heat-and-serve meals’ in areas where people have limited mobility.

Ideal for franchisees in the provinces, the Mister Donut on Wheels entails an investment cost of P660,000, including the discounted franchise fee of P50,000, signage and murals, equipment, permits and other documentation, and fabrication. The franchisee will need to procure a brand-new or second-hand L300 van separately. Franchisees can opt to add another store in trike format with an additional investment of P170,000, including the cost of the trike.

Mister Donut also rolled out its Business Trial Package, which allows entrepreneurs to try out the business for an initial cash outlay of only P100,000 for 90 days. If the location proves to be profitable, the franchisee can convert it to a regular franchise. If the location did not pass the profitability metrics, the franchisee may look for another site. Of the P100,000 initial investment, P50,000 is refundable, subject to terms and conditions.

Mister Donut’s regular franchise packages entail investments of P210,000 for an indoor kiosk; P295,000 for outdoor kiosk; P430,000 for inline kiosk; P1.4 million for a counter café; and P2.4 million for dine-in.

Even during stricter lockdowns, Carino said Mister Donut was able to maintain its nationwide distribution, with deliveries to stores in Luzon, Visayas and Mindanao made on schedule.