An All-Day Breakfast Classic Made Scalable for Multi-Unit Operators

Some foods are synonymous with classics in the consumer lexicon. Donuts are one of these. But making a truly great donut at scale is no small feat. With proofing, dough hydration, flavor trends, and competition, operating a truly great donut concept is a challenge. Randy’s Donuts has over 70 years in the industry, and the iconic giant glazed rooftop donut serves as a beacon for consumers looking for that perfected, doughy treat.

It was this combination of brand recognition and long-standing history that attracted Christine Lee, a Randy’s Donuts franchisee who is bringing the concept to New York. “It is rare to find a franchise with such a long and storied history that has yet to enter a major market like New York City,” Lee says. “I fell in love with Randy’s when I lived in Los Angeles, and whenever I visited my friends in different cities they would always ask me to bring a box of Randy’s to them. The brand has a level of recognition and nostalgia that few donut concepts can match.”

Statistics show both consumers’ continued interest and why donuts are a lucrative option for franchising. More than 200 million U.S. consumers eat donuts every year, and that is projected to increase, according to 2024 Statistica reporting. Randy’s popularity, longevity, and continued growth showcase the business case, and franchisees have found a strong business model formatted for multi-unit success.

“Franchise interest continues to accelerate because operators recognize the quality of our product and the scalability of our business model,” says Kara Conklin, vice president of franchise development at Randy’s Donuts.

That scalability is proving effective even in hyper-competitive markets like New York. “Although the baked goods category is highly competitive, I believed there was a clear opportunity for a nostalgic, handmade donut brand like Randy’s,” Lee adds. “We offer more than 35 varieties of donuts, all made fresh by hand every day, giving customers a level of quality and freshness that sets us apart. I was confident that Randy’s iconic brand heritage and large handcrafted donuts would resonate with customers and allow us to capture meaningful market share.”

One of the most vital aspects of franchisee success is built into the operating model: Randy’s runs a hub-and-spoke style model. “The hub-and-spoke model creates efficiencies throughout the business by centralizing our most intensive processes,” Conklin says. “A central production hub supplies multiple spoke locations, allowing franchisees to reduce equipment investment and improve labor utilization.”

Scaling with the hub-and-spoke model also presents a reduced franchise fee burden, so operators can scale more easily. With an initial franchise fee of $35,000 for the first hub and a $12,500 deposit for each spoke, the model is set up so multi-unit franchisees can scale efficiently while protecting profits.

While Randy’s has one eye on its heritage and core product, that hasn’t stopped it from diversifying revenue through all-day breakfast sandwiches, specialty beverages, catering, and 24-hour operations. Support for these initiatives is hands-on.

“Support begins before opening day, with assistance in design, construction, and operational training,” Conklin says. For Lee, this included a deep dive into the brand’s technical standards. “The head baker, who has been with Randy’s for 30 years, played an instrumental role in training our New York baking team and ensuring we maintained the brand’s high standards,” Lee says. “His experience and deep understanding of the products have given me complete confidence in our ability to deliver the same exceptional donut experience that customers expect from the brand.”

Beyond training, the Randy’s format options help operators break into competitive markets. “Randy’s Donuts is a one-size-fits-all concept,” Conklin says. “Whether it’s a flagship hub, drive-thru, or an inline bakery, we have multiple formats that allow franchisees to enter markets efficiently.”

Marketing support is also tailored through the LOMA platform, giving franchisees access to brand assets and customized materials. Randy’s is selective in identifying the operators best positioned to grow, looking for business leaders who understand hospitality and execution.

Lee recommends that other prospective owners look closely at the brand’s unique market position. “I would encourage prospective franchisees to take a close look at Randy’s if they’re seeking a brand with a strong heritage, broad consumer appeal, and a product that stands out,” she says. “The franchisor has been a true partner throughout the process—from site selection to operations, the support has been collaborative.”

As Randy’s expands across the Sun Belt, Texas, and the Mountain West, the brand’s strategy remains focused on sustainable, contiguous growth. “This is much more than opening another donut shop; it’s an opportunity to own a piece of American history,” Conklin says. “Operators are joining one of the most recognizable brands in the industry with a proven operating model.”

Lee offers one final piece of advice for those joining the family: “Do plan to gain some extra weight as the donuts are incredibly hard to resist!”