24 April 2, 2012 Arkansas Business

Crowded Doughnut MarketFails to Discourage Dunkin’ Business

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Little Rock and North Little Rock are home to a combined 14 doughnut shops with 2011 sales ranging from almost $2 million to less than $40,000.

But that hasn’t discouraged Dunkin’ Donuts of Canton, Mass., which announced last July that it planned to open about 11 new restaurants in Arkansas in the coming years.

One is expected to open in August at 6805 Cantrell Road in Little Rock, and a number of reliable sources have said another should eventually open near the category killer Krispy Kreme at 1315 S. Shackleford Road.

Dunkin’ spokeswoman Jenna Kantrowitz confirmed last week that one shop will end up at Interstate Highway 30 and Reynolds Road in Bryant, but she couldn’t provide an opening date.

One franchise owner, JAB QSR Inc., headed up by the Littlefield family of Fort Smith and Booneville, has seven Dunkin’ Donuts locations planned, though details of only one have been finalized. That first one is slated to open in early May at 7401 Phoenix Ave. in Fort Smith.

Doughnut DataSowadi Chea, owner of the indepen-

dent Early Bird Donuts on Geyer Springs Road, called the Little Rock doughnut market “oversaturated.”

Judging from the local-option tax paid, the only Krispy Kreme outlet in central Arkansas beat its closest compe-tition by more than $1.7 million in sales last year.

The franchise that seems ubiquitous

in central Arkansas is Shipley Do-Nuts of Houston. That might be, as Krispy Kreme manager Gary Stewart suggested, because a Shipley franchise is inexpen-sive. The company requires franchi-sees to have an initial $40,000 franchise fee, a minimum of $150,000 liquid and $550,000 net worth, according to its web-site.

In contrast, Krispy Kreme requires about $3 million in liquid assets to start, Stewart said. Initial investments range from $928,000 to $1.9 million, the com-pany website states. 

Little Rock’s Krispy Kreme opened to a traffic jam of eager customers in 2004, and Stewart said he doesn’t expect Dunkin’ Donuts’ arrival to hurt his sales.

Nicole McCollum with the 35-year-old independent Mark’s Do-nut Shop in North Little Rock also doesn’t view Dunkin’ Donuts as a major threat, saying Mark’s has a loyal following. n

Little Rock Area Doughnut Shop LocationsRanked by 2011 Revenue

Sources: Cities of Little Rock and North Little Rock

Krispy Kreme Doughnuts $1,991,0321315 S. Shackleford Road, Little RockShipley Do-Nuts $278,58714810 Cantrell Road, Little RockMark’s Do-nut Shop $249,283 4015 Camp Robinson Road, North Little RockShipley Do-Nuts $245,0211424 N. Shackleford Road, Little RockShipley Do-Nuts $240,0707514 Cantrell Road, Little RockShipley Do-Nuts $218,5578211 Geyer Springs Road, Little RockShipley Do-Nuts $216,2388523 W. Markham St., Little RockShipley Do-Nuts $173,31413120 Crystal Hill Road, North Little Rock Shipley Do-Nuts $134,9002127 Main St., North Little Rock Shipley Do-Nuts $124,6334619 E. Broadway St., North Little Rock

Daylight Donuts $121,4034030 John F. Kennedy Blvd., North Little RockShipley Do-Nuts $73,0641307 Barrow Road, No. B, Little Rock Early Bird Donuts $56,6227610 Geyer Springs Road, Little RockShipley Do-Nuts $39,8614524 Asher Ave., Little Rock

Workers box doughnuts at Krispy Kreme in Little Rock. [pHOTO BY MicHael pirnique]