MWAZIZIWA > BUSINESS > How to Grow a Small Donuts Business into a Thriving Bakery.

How to Grow a Small Donuts Business into a Thriving Bakery.

donuts to bread

Turning a small donut hustle into a full-scale bakery business is possible—with vision, planning, and hustle. Many African entrepreneurs start with just one product (like donuts or mandazi) sold in the streets or from a home kitchen. But with the right strategies, you can go from frying donuts in a pot to running a bakery brand that serves pastries, cakes, bread, and more.

In this guide, we’ll break down practical steps to help you grow from small to big, even if you start with limited capital.

Step 1: Master Your Product First.

Before thinking about expansion, make sure your donuts are:

  • Delicious and consistent
  • Affordable but profitable
  • Unique (in flavor, shape, size, or packaging)

Practical Tip:

Offer at least 3 variations (e.g., plain, sugared, filled) and test which sells most. Use feedback to improve the recipe.

Note : Table below is only there as example, you can price based on your local conditions.

Donut TypeCost Price (MWK)Selling Price (MWK)Profit per Unit
Plain8015070
Sugared9017080
Filled11020090

By tracking this, you can focus on your most profitable products.

Step 2: Create a Brand Even If You’re Small.

Don’t wait to go big before you start branding. Even if you’re selling in a local market, create a name, logo, and social media presence.

Affordable Branding Ideas:

  • Use Canva to design your logo.
  • Create a simple flyer with your menu.
  • Use WhatsApp status and Facebook pages to post photos and get feedback.
Canva

Example:

Business Name: Mama D’s Donuts
Tagline: “Bite into joy, every day.”
Facebook Page: Mama D Donuts – Lilongwe


Step 3: Reinvent Your Packaging

Presentation builds reputation. Even in low-income areas, people buy based on how food looks.

Budget Packaging Ideas:

Packaging OptionCost per Unit (MWK)Looks Professional?Where to Get
Brown paper bags15YesLocal stores
Branded sticker labels10YesLocal printers
Transparent plastic wrap8ModerateSupermarkets

Step 4: Grow Sales Channels.

To scale your donuts into a bakery, you need more customers—not just better donuts.

Sales Channel Expansion Ideas:

  1. Office Delivery: Partner with offices for morning snacks
  2. School Contracts: Deliver to local schools during break time
  3. Supermarket Supply: Package and supply to mini-marts or grocery stores
  4. Online Orders: Use WhatsApp/Facebook for daily pre-orders

Step 5: Save and Reinvest Your Profits

If you’re making 80 MWK profit per donut and selling 50 daily:

Daily profit = 4,000 MWK
Monthly profit = 120,000 MWK

Instead of spending it, reinvest 70% of that into equipment and scaling.

Reinvestment Plan Table:

MonthTarget EquipmentApprox Cost (MWK)Reinvestment Goal
1Bigger frying pan + tray40,000
2Hand mixer60,000
3Small oven150,000Partial Save

Step 6: Add New Products Slowly

Once you build a loyal customer base, expand your product range. Do this carefully—too many new products at once can ruin quality.

Suggested Product Growth Timeline:

QuarterNew Product AddedWhy This Makes Sense
Q1Cakes (cupcakes)Uses similar ingredients/tools
Q2Buns or sconesTargets same breakfast audience
Q3Bread (basic)Taps into household staple market
Q4Meat piesEntry into lunch/snack market

This slow rollout avoids overwhelming your kitchen and budget.


Step 7: Transition From Home Kitchen to Baking Space

When demand grows, you’ll outgrow your home kitchen. That’s a good problem. Your next move should be securing a small bakery space or “production corner.”

Options:

  1. Rent a Room: Cheap and manageable. Use it for baking and packaging only.
  2. Container Bakery: Use a converted shipping container or kiosk—affordable and mobile.
  3. Shared Kitchen: Partner with restaurants to rent their kitchen during off-hours.

Essentials for First Bakery Setup:

EquipmentEstimated Cost (MWK)Source
Oven (medium)300,000Second-hand suppliers
Stainless Work Table80,000Local welding shops
Mixer (electric)200,000Electrical shops
Baking trays & pans100,000Wholesale kitchenware

Step 8: Train or Hire Help

As demand grows, hire or train at least one assistant. Focus on quality control and speed.

Roles to Hire First:

  • Assistant Baker – to help with prep
  • Delivery Rider – to fulfill office/school orders
  • Sales Girl/Boy – if you open a front-shop counter

If you don’t have the money to pay salaries, offer profit-sharing or daily wages.


Step 9: Register Your Business and Go Formal

As your bakery grows, you’ll need to register the business to access wholesale prices, loans, and supply deals.

Basic Formalization Steps:

  1. Register your business name with the local city council
  2. Open a business bank account
  3. Get a food handling certificate
  4. Apply for business licenses

Benefits of Formalizing:

  • Access to bakery supply wholesalers
  • Ability to apply for business grants or SME loans
  • Builds customer trust (especially for large orders)

Step 10: Think Like a CEO, Not a Cook.

The final transition from donut seller to bakery boss comes down to your mindset.

Instead of doing everything yourself, focus on:

  • Marketing & branding
  • Product development
  • Partnerships
  • Business strategy

Ask yourself regularly:

  • What sells best and why?
  • What’s draining profits?
  • Which partnerships can I build?
  • Am I building a brand or just selling food?

Final Say, Start Small, Think Big, Grow Steady.

Many successful bakeries across Africa started with something simple: a donut, a cupcake, or bread. The key is to start small but plan for growth.

With dedication, reinvestment, proper branding, and customer love, your small donuts business could soon become the next beloved bakery brand in your city—or even your country.


Inspired? Ready to turn your donuts into a bakery brand?

Let us know in the comments what stage you’re in—or share your small bakery journey! But to learn more about Real Estate Investment in Africa: Risks and Rewards, CLICK HERE.

Leave a Reply

Your email address will not be published. Required fields are marked *