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Duck Donuts: where the customer comes first

Case Study

Duck Donuts: where the customer comes first

The made-to-order donut brand has seen extensive international growth and has its eyes set on an explosive 2022

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In 2007, Russ DiGilio, Duck Donuts founder and CEO, was on a mission to solve a family vacation problem. “Our family wanted a place to buy warm, delicious, made-to-order donuts, and when we couldn’t find one, we decided to start our own,” said DiGilio.

The first franchise opened in Williamsburg, Virginia, in 2013, and there are now 105 open franchise locations in 22 states and more than 145 additional contracts in 27 states. Internationally, Duck Donuts has two operating locations, with its most recent location opening in Riyadh, Saudi Arabia.

With a strong focus on product innovation, in recent years, the company has also added menu items including vegan donuts, a chocolate cake-based donut, a donut breakfast sandwich and more.

In order to continue the momentum of one of the fastest-growing donut franchises, the company is looking at a more aggressive approach to selling franchise agreements domestically and internationally, with a strong focus in tourist and resort areas, as well as non-traditional locations.

Global growth in 2022

Despite the overall challenges of 2020, Duck Donuts continued to see positive growth both domestically and internationally. In June 2020, the company opened its first location outside the mainland of the United States in Bayamón, Puerto Rico to much fanfare.

Most recently, the brand also celebrated an international milestone with the opening of its first store in Riyadh, Saudi Arabia. Duck Donuts has continued to open units in iconic locations, such as the Mall of America location in Minnesota.

As the company looks towards 2022, Duck Donuts will begin operating in Canada, Egypt and Pakistan. The company is now offering a flexible footprint that ranges from 400 to 1,500 square foot, and have demonstrated to be a proven business model for nontraditional locations such as food trucks, airports, and stadiums.

Putting customers first

Ahead of the COVID-19 pandemic, Duck Donuts launched its first system-wide, mobile app point-based loyalty program, Duck Donuts Rewards.

Consumers earn five points for every dollar spent that unlocks sweet rewards as the status levels increase. Since the official launch in February 2020, the company has secured more than 200,000 downloads, generating more than $4m in sales.

“The goal for our loyalty program is to increase customer frequency, drive consumer behaviors and continue to grow brand awareness,” said Betsy Hamm, Duck Donuts CEO.

“In almost two years, we have been able to accumulate strong consumer-driven data that gives us a better insight into our target audiences, allowing us to best meet the needs of our loyal guests.”

Unparalleled franchisee support

From the process of market research to site selection, construction and design to then operations, training and marketing support, the corporate team works closely with each franchise owner to help them succeed.

Duck Donuts is ready to transition from an emerging to an established brand and is looking for franchisees to be a part of the company’s growth.

At a Glance Duck Donuts

Year established: 2013 (first locations opened in 2007)
Number of franchised outlets: 106
Company-operated units: 1
Location of units: United States, Puerto Rico, Kingdom of Saudi Arabia, Canada, Egypt, Thailand, Pakistan
International franchise fee: Based on territory and number of units. Area and master franchise opportunities available
Build-out options: Free standing, in line, malls, food truck, airports and stadiums
For international opportunities, contact: Marcel Portmann, mportmann@duckdonuts.com duckdonuts.com/about-us/franchising-info

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