A donut glaze that can boost in-store bakery profitability (2024)

Sponsored by Dawn Foods

Everyone loves a delicious treat, especially the freshly baked variety. Few items are more enticing than donuts, the classic breakfast or snack food. In-store bakeries have an opportunity to boost sales of these fun, indulgent delicacies—but there are challenges. While yeast-raised donuts are great for driving impulse purchases, they often look less visually appealing when the glaze melts off or sticks to the packaging. But now an exciting innovation can help supermarket bakery departments avoid this situation while increasing sales, reducing labor costs, and slashing food waste.

In-store bakery is a department that enjoys high consumer engagement. According to a report from the Food Industry Association (FMI), 95% of supermarket shoppers purchase an in-store bakery item at least occasionally, and 63% do so weekly. However, while more than three-quarters (78%) of shoppers buy functional bakery items such as bread at the supermarket, only about half (51%) say their primary grocery store is their main destination for in-store bakery items.

Supermarkets can appeal to these shoppers who would otherwise visit specialty bakeries or even other grocery stores, by ensuring that the bakery assortment remains fresh and visually appealing. With yeast-raised glazed donuts, the key is to prevent the moisture of the glaze from seeping into the donut. This moisture migration between donut and glaze results in undesirable, sticky, wet donuts.

Controlling moisture

An exciting solution comes from the global innovation team at Dawn Foods, which developed the Pak Perfect™ Non-Sticky Donut Glaze. “We designed the technology precisely to control moisture mobility in the glaze and create an equilibrium between donut and glaze phases,” says Roja Ergun, director of research and development at Dawn. “As a result, we are able to prevent the glaze from getting wet and sticky while preventing the donut from drying out.”

As the partner for bakery success Dawn’s insights team combines bakery trends with an understanding of their bakery customer needs to develop new products solutions with the Research & Development team. Ergun says the Pak Perfect™ Non-Sticky Donut Glaze innovation is a breakthrough technology that addresses three main challenges that in-store bakery customers face with packaged donuts: It provides a mess-free non-sticky glaze for donuts, it has five days of extended shelf life in an airtight clamshell packaging, and it is truly freeze-thaw stable.

These benefits can drive sales in the bakery department, and Pak Perfect™ Non-Sticky Donut Glaze can also help prevent food waste. According to the United Nations Environment Programme Food Waste Index Report 2021, globally 14% of food is wasted before it reaches retail, and 17% may be wasted from retail to consumer.

Emma Blough and Kiyul Cho, food scientists at Dawn, note that food waste not only presents sustainability issues but also impacts bakery profitability. “In upstream processes, we can rework and repurpose ingredient and manufacturing losses,” they say. “However, for finished products like a glazed donut, the product cannot be repurposed, and with a short, fixed shelf-life it leads to food waste.”

Short shelf life

Glazed donuts typically have a shelf life of one day, but Dawn’s Pak Perfect™ Non-Sticky Donut Glaze extends the shelf life of the glazed donut for up to five days. That can help an in-store bakery drive sales in a department where freshness is crucial.

“The first step should always be to have fresh-looking product,” says Erik Enyedy, senior director of technical sales and service for Dawn. “This is where Pak Perfect provides an advantage for the supermarket in-store bakery.”

Merchandising is also important, and operators should display yeast-raised glazed donuts not only in the in-store bakery but also in high-traffic areas such as the entrance of the store. Consumers are watching their spending, so operators should highlight the multipacks to emphasize value. Grab-and-go is still a huge trend, so make the stacks of four-donut clamshells easy to find in the store. Package the donuts in clear clamshells or packaging with a window.

Keeping tables and displays filled with fresh products is key, and that’s another area in which Pak Perfect™ Non-Sticky Donut Glaze can help. If the donuts in a clamshell remain fresh for five days, the supermarket does not have to assign team members to constantly restock, and that can save on labor costs.

Donuts are crowd-pleasers among consumers. Now, with Pak Perfect™ Non-Sticky Donut Glaze, donuts can help the in-store bakery department save on labor, reduce food waste, and drive sales, because the donuts remain fresh and visually appealing for five days. For more information, visit www.dawnfoods.com.

A donut glaze that can boost in-store bakery profitability (2024)

FAQs

A donut glaze that can boost in-store bakery profitability? ›

Short shelf life

Can a donut shop be profitable? ›

Generally, doughnut shops can expect a profit margin of 10-15%, with some businesses achieving higher margins through effective cost management and successful marketing campaigns. Doughnut shops, like any other business, face a set of unique challenges and opportunities that can influence their success.

What is donut glaze made of? ›

Glaze or fill as follows, and serve as soon as possible. Whisk together 2 cups powdered sugar, ¼ cup milk and 1 teaspoon vanilla until smooth. When the doughnuts are cool enough to handle, dip into the glaze; if you like, flip them so the tops they're completely covered. Put on racks to let the glaze harden.

How much does it cost Krispy Kreme to make one glazed donut? ›

The material cost of a glazed doughnut is approximately 10–14 cents per donut. Understanding the cost of making a Krispy Kreme donut can provide valuable insight into the company's pricing strategy and overall business model.

How much does it cost to make a glazed donut? ›

Food Cost

The cost to make one donut is, on average, only $0.12.

How do I promote my donut business? ›

50 different ways to advertise or promote a donut shop.
  1. Develop a website for the donut shop.
  2. Create a Facebook page and post regularly.
  3. Design a logo for the shop.
  4. Place signage outside the shop.
  5. Launch a promotional campaign through direct mail.
  6. Issue coupons for discounts.

How do you store donuts with glaze? ›

Iced donuts don't go well with the fridge as a fridge can create a moist environment causing the donut to lose its glaze. They are best kept fresh at room temperature in an airtight container. Wrap them in paper and keep them safe and fresh in a tight container for later indulgence.

What are the three main ingredients in glaze? ›

A BASE GLAZE is a mixture of these three basic groups: SILICA, FLUX AND ALUMINA.

What stabilizer is used for donut glaze? ›

PIC Instant Glaze-Up is a translucent stabilizer that can be used to stabilize donut glaze (hot or cold process). This stabilizer is excellent for old fashion pressure cut, bench cut and retail donuts.

Why are Krispy Kremes so good? ›

Because they are yeast donuts, not the cake donut. They are light and airy like a yeast roll, just enough sweet glaze to cover. It they are hot, it's like eating cotton candy, it melts in your mouth.

How many times a day does Krispy Kreme make fresh donuts? ›

The glazed doughnuts have a shelf life of just 12 hours, so bakers need to replenish them at some point. Each Krispy Kreme generally makes glazed doughnuts twice a day: around opening time, and again in the p.m., says a Krispy Kreme customer service representative.

Who owns Krispy Kreme? ›

JAB Holding Company is the privately-held parent company of foodservice concepts Bagel Brands, Caribou Coffee, Einstein Noah Restaurant Group, Espresso House, Krispy Kreme Doughnuts, Panera Bread, Peet's Coffee and Pret a Manger.

What is the profit margin on donuts? ›

A well-run donut shop can achieve a profit margin of 10-20%, but this figure can vary depending on factors such as location, competition, and operational efficiency.

Is a mini donut business profitable? ›

Look at these tasty profits...

Let's say you placed your machine in a good traffic location and operated at full speed for 2 hours, selling all the mini-donuts you produced. As much as 95% profit - that's over $500.00 per hour possible!

How much should I sell donuts for? ›

Cost-Plus Pricing

For example, if it costs you $0.50 to make a donut and you want a 50% markup, you would sell the donut for $0.75. This method is straightforward and ensures that you will make a profit, but it may not take into account market demand.

Is there a demand for donuts? ›

Global Donuts Market reached USD 7.1 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 13.2 billion by 2030. The market is growing at a CAGR of 8.1% during the forecast period 2024-2031.

Is the donut industry growing? ›

According to our (industryresearch.biz) latest study, the global Doughnuts market size was valued at USD 16200 million in 2023 and is forecast to a readjusted size of USD 20260 million by 2030 with a CAGR of 3.3% during review period. Applications: Food Service, Retail Stores. Types: Cake Style, Yeast Style.

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