Business OverviewDid you know that more than one billion doughnuts are sold each year in the U.S.? That's more than ample reason to consider a doughnut shop as a new business venture. The first approach is to open a traditional, sit-down style doughnut shop that serves customers doughnuts, coffee and muffins. The second approach is to establish a commercial doughnut bakery that's not open to the public, but specializes in making doughnuts for wholesale to grocery stores, restaurants, school cafeterias and catering companies. Of course, you can also combine both operating formats and run a doughnut shop as well as a doughnut wholesale baker business. The industry is very competitive, so be sure to practice good research and planning skills prior to establishing the business. Profit potential range is $40,000 or more per year.