What should I check before buying a donut shop?

A donut shop is a production business with a retail counter. Much of the work happens in the dark hours before opening, and the result depends on a small number of skilled people and a few heavy machines. When you look at one, spend as much time in the back as at the counter, and ask questions that tell you what the owner personally keeps running.

Who bakes, and when

Overnight or very early production is hard to staff. Ask who does it now, how long they have worked there and whether the owner covers gaps. If the baker leaves with the owner, the product may change. Ask for a full production shift to be shown to you, with the seller’s agreement, and find out how much of the know-how is written down.

Fryer, proofer and ventilation

Fryers, proofers and mixers are costly to replace, so ask for their age, service records and any repairs under way. Frying also puts heavy demands on oil handling and on the hood and ventilation above it. Ask how often they are cleaned and who does it, and whether a fire or health inspector has raised concerns. A cafe due diligence guide lists similar equipment questions.

Morning rush, accounts and recipes

Many donut shops sell most of their product before midday. Ask what the afternoon looks like and whether wholesale, office or event orders fill the gap, and whether those accounts are under contract. Finally, ask who owns the recipes and brand name. If they belong to a franchisor or a separate company, your lawyer should see that agreement.