2017
3
$198,000
$29,900
$330,000
No
Donut Distillery is not just a donut shop; it's a vibrant experience that combines gourmet mini donuts with a lively atmosphere. Founded in 2017 by Shauna McCoy in Nashville, Tennessee, the brand quickly gained popularity for its unique offerings and community-focused approach. With a menu that includes whiskey-glazed donuts, spiked milkshakes, and a variety of coffee options, Donut Distillery has carved out a niche in the competitive dessert market.
The brand's commitment to quality, creativity, and customer satisfaction has led to its expansion into multiple locations, including East Nashville and Oxford, Mississippi. Now, Donut Distillery is seeking passionate entrepreneurs to join its franchise family and bring the joy of mini donuts and boozy treats to communities across the United States.
Unique Concept: Donut Distillery offers a distinctive blend of gourmet mini donuts and alcoholic beverages, setting it apart from traditional donut shops.
Proven Success: With multiple successful locations, the brand has demonstrated its ability to thrive in diverse markets.
Comprehensive Support: Franchisees receive extensive training and ongoing support to ensure operational success.
Exclusive Territories: Franchisees are granted exclusive rights within a defined territory, reducing competition and enhancing market potential.
Established Year: 2017
Founders: Shauna McCoy and Todd McCoy
Headquarters: Nashville, Tennessee, USA
Ownership: Privately held under Donut Distillery Franchise LLC
Franchise Units: 3 operational locations (as of 2022)
Brand Journey & History:
Donut Distillery began as a local mini-donut and coffee shop in East Nashville, Tennessee, founded by Shauna McCoy with the vision of creating a unique dessert experience. Known for their gourmet mini donuts paired with creative alcoholic beverages, the brand quickly built a strong local following. Its combination of high-quality products, fun atmosphere, and innovative marketing helped establish Donut Distillery as a trendsetter in the specialty dessert and craft beverage niche.
Over the years, the brand expanded to multiple locations, including Oxford, Mississippi, and continues to grow through a strategic franchising model. Donut Distillery is recognized for blending a community-focused approach with a premium culinary experience, appealing to customers looking for both indulgence and entertainment.
Market Presence in the USA:
Currently operating in Tennessee and Mississippi, Donut Distillery targets urban and suburban markets with vibrant food and beverage scenes. The brand is strategically positioning itself for nationwide expansion through franchising, leveraging its unique product offerings and experiential retail model.
Industry Category: Food & Beverage – Specialty Desserts, Quick Service Restaurant (QSR)
Unique Selling Proposition (USP):
Donut Distillery distinguishes itself by combining gourmet mini donuts with boozy beverages and specialty coffee, creating a “dessert experience” rather than just a conventional donut shop. Its strong social media presence, unique branding, and community engagement make it a standout franchise opportunity in the specialty dessert sector.
Donut Distillery is committed to ensuring that every franchisee succeeds by offering comprehensive, hands-on support from the pre-launch phase through ongoing operations. Their structured support system covers operational guidance, marketing, training, and continuous assistance to optimize performance.
Site Selection Assistance: Franchise experts help identify and evaluate ideal locations based on demographics, traffic, and market potential.
Lease Negotiation Guidance: Support in securing favorable lease agreements and negotiating terms.
Store Design & Build-Out: Assistance with interior layout, equipment sourcing, décor, and compliance with brand standards.
Permits & Licensing: Guidance for obtaining necessary local and state permits to ensure regulatory compliance.
Grand Opening Planning: Marketing strategies, promotions, and event planning support for a successful launch.
Classroom Training: 6 hours of classroom-based learning covering franchise operations, brand standards, and customer service excellence.
Hands-On Training: 36 hours of in-store practical training on donut preparation, beverage crafting, equipment handling, inventory management, and daily operations.
Manager Training: Optional training for store managers to ensure consistency in operations and team leadership.
Ongoing Education: Regular updates, webinars, and workshops on new products, seasonal menu items, and operational improvements.
Daily Operations Guidance: Expert assistance on inventory management, staffing, scheduling, and workflow optimization.
Point-of-Sale (POS) System Support: Implementation and technical training for the franchise POS system.
Standard Operating Procedures (SOPs): Detailed manuals covering all aspects of running a Donut Distillery location efficiently.
Branding Materials: Access to professionally designed logos, signage, menu boards, and in-store displays.
Digital Marketing Assistance: Guidance on social media campaigns, email marketing, and website management.
Local Marketing Strategy: Tools and templates for promotions, community events, and loyalty programs to attract and retain customers.
National Campaigns: Support for any national-level promotions or media coverage that benefit all franchise locations.
Field Support: Regular visits from franchise consultants to provide guidance, troubleshoot issues, and optimize performance.
Operational Updates: Continuous updates on best practices, new product launches, and technology enhancements.
Franchisee Network: Access to a community of franchisees for shared learning, collaboration, and mentorship.
Donut Distillery seeks motivated and capable entrepreneurs who are passionate about creating memorable culinary experiences and building a thriving business in the food and beverage industry. The ideal franchisee possesses a mix of business acumen, community engagement, and enthusiasm for the brand’s unique product offerings.
A genuine interest in gourmet desserts, specialty beverages, and creating unique customer experiences.
Excitement for working with innovative products like mini donuts, spiked milkshakes, and specialty coffees.
Dedication to maintaining high-quality standards in every aspect of the customer experience.
Experience in managing a small business, retail operation, or restaurant is highly valued.
Ability to follow a proven system while applying creativity in marketing and community engagement.
Strong leadership and team management skills to train, motivate, and retain staff.
Commitment to building relationships with customers and creating a welcoming, engaging environment.
Interest in participating in local events, sponsorships, and community initiatives to strengthen brand presence.
Ability to invest the minimum required capital (estimated $198,000–$330,000) and sustain operations until profitability.
Comfortable managing operating costs, marketing budgets, and inventory efficiently.
Long-term vision for growth and willingness to reinvest in the franchise for expansion opportunities.
Ideal candidates are based in urban or suburban areas with a population of at least 30,000.
Locations with a vibrant dining scene, foot traffic, and accessibility for customers are preferred.
Candidates should be willing to actively participate in day-to-day operations, especially during the initial launch phase.
Entrepreneurial mindset with a drive to grow a profitable business.
Strong work ethic and commitment to maintaining the brand’s high standards.
Adaptability and resilience to navigate challenges and capitalize on new opportunities.
| Financial Item | Details / Range |
|---|---|
| Initial Franchise Fee | $29,900 |
| Total Investment Required | $198,000 – $330,000 |
| Minimum Investment | $198,000 |
| Franchise Units | 3 operational units (as of 2022) |
| Infrastructure / Build-Out Costs | $150,000 – $250,000 (includes equipment, décor, and POS system) |
| Marketing & Advertising Budget | $5,000 – $10,000 initial; ongoing support provided by corporate |
| Working Capital | $15,000 – $20,000 |
| Royalty Fees | Percentage details provided upon request (typically industry standard 4–6%) |
| Expected ROI | 15–25% annually (varies by location, traffic, and management) |
| Break-Even Time | Typically 12–18 months |
| Revenue Streams | In-store sales, online ordering, catering services, seasonal promotions, merchandise |
Key Notes:
ROI and break-even times are estimates and depend on location, market conditions, and operational efficiency.
Marketing budgets include initial grand opening campaigns, social media support, and community engagement strategies.
Ongoing royalty fees are structured to support continuous brand development, operational assistance, and national marketing initiatives
