- Donut King says a new traditional store costs $230,000 to $390,000 excluding GST for the build and equipment.
- The brand is owned by ASX-listed Retail Food Group and has franchised since 1991.
- Stores are small kiosk or inline sites in shopping centres, so rent and outgoings are a major cost.
Donut King opened its first Australian store in 1981 and is known for its cinnamon donuts and pink-branded kiosks. Retail Food Group, which also owns Gloria Jean’s and Crust, manages the system.
The model is simple and doesn’t require food experience, but margins depend on centre rent, labour and how well production matches demand.
Donut King franchise at a glance
| Sector | Donuts, hot dogs and coffee |
|---|---|
| Owner | Retail Food Group Limited |
| First store | 1981; franchising since 1991 |
| New store build | $230,000 to $390,000 excluding GST (build and equipment) |
| Formats | Inline (about 35 to 40 sqm) and kiosk (about 26 to 30 sqm) |
| Training | At Retail Food Group’s training academy on the Gold Coast |
| Experience | No prior food experience required |
Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.
How the Donut King model works financially
Donut King sells low-priced items in high volumes, so throughput at peak times and the share of coffee in the sales mix matter. Donuts are made on site, so production planning and wastage control affect gross margin.
Shopping centre rent is usually the biggest fixed cost. In a small kiosk, a modest change in rent or wages can decide whether the store makes a profit.
The numbers to test before you buy a Donut King franchise
- The full investment, including franchise fee and working capital, on top of the build cost.
- Rent and outgoings as a share of sales.
- Coffee share of sales and margin.
- Production wastage on donuts.
- Labour at peak times and weekends.
- Supply pricing and the franchisor’s financial position in the disclosure document.
Buying an existing Donut King store
Existing Donut King stores are listed through Retail Food Group and brokers. Reconcile the seller’s figures to BAS and bank records, and check the lease term, because shopping centre leases often require a refit at renewal.
How Franchise Co. can help with a Donut King purchase
We work with buyers and owners of franchise businesses across Australia. For a Donut King store we can:
- Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests the build cost, rent, labour and supply terms against the disclosure document.
- Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that tracks coffee and food margins separately. See accounting and tax and bookkeeping, BAS and payroll.
- Check your franchise fees. We reconcile royalty and marketing fees to the sales they’re calculated on. See royalties and franchise fees.
- Plan the next store. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.
Donut King franchise FAQs
How much does a Donut King franchise cost?
Donut King says a new traditional store costs $230,000 to $390,000 excluding GST for the build and equipment. Franchise fees and working capital are additional.
Who owns Donut King?
Retail Food Group, an ASX-listed franchisor.
Do I need experience to run a Donut King?
No. Donut King provides training at Retail Food Group’s academy on the Gold Coast.
What drives profit in a Donut King?
Rent, labour, coffee sales and production wastage.
Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to Donut King or Retail Food Group. Donut King is a trademark of its owner and is used here only to identify the brand this guide discusses.
Sources and further reading
- Donut King: New store costs
- Donut King: About the franchise system
- ACCC: Franchise disclosure document
Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.
This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.
Talk it through
Every franchise is different. Ask us how this applies to yours.
