Doughnut maker sweet on growth after six-figure loan

A doughnut maker is rolling out growth plans following six-figure backing.

Doughnotts says it is poised to develop a franchise model, carry out store revamps and expand into new geographies.

The blueprint comes after the Nottingham-headquartered baker secured a Midlands Engine Investment Fund II loan, which bosses say leaves them well placed to “take the brand into its next chapter”.

Founded in 2015, Doughnotts has grown from a kitchen start-up to a multi-store operator in Nottingham, Lincoln, Beeston and West Bridgford.

It supplies its own retail network and a range of local cafés and eateries that include supermarket partners such as the Co-op.

Wade Smith, Doughnotts’ co-founder and director – who revealed the funding will formalise a franchise partnership with Ashtons Franchise Consulting – said: “We have built a loyal customer base.

“We are delighted to secure this investment as we enter the next phase of our growth.”

The £400 million Midlands Engine Investment Fund II – overseen by British Business Bank – provides debt finance from £25,000 to £2 million and equity investment up to £5 million to small and medium-sized businesses.

David Tindall, British Business Bank senior investment manager, said: “This investment in Doughnotts’ franchise model will strengthen its foundations, enabling sustainable expansion into neighbouring regions, allowing it to deliver its services to an even wider customer base.”

Doughnotts secured its loan through East and South East Midlands fund manager Maven Capital Partners.

Sabrina Mahmood, Maven Capital Partners investment manager, added: “Doughnotts has developed a distinctive regional brand built on product quality and strong customer loyalty.

“We were particularly impressed by the clarity of the growth strategy and the scalability of the franchise model alongside an established retail network.”

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