Chapter I

INTRODUCTION

Donuts are one of the most popular foods of all time. They are

sweet,delicious and you can eat them on the go. Donuts have been around

for hundreds of years, however, their true origin & invention is debated as

fried dough is not exclusive to a single culture. The exact place where the first

donuts were made is unknown and nobody knows who made the very first

donut.

In the Philippines Native doughnut recipes include the shakoy, kumukunsi

and binangkal. Shakoy from the Visayas islands uses a length of dough

twisted into a distinctive rope-like shape before being fried. The texture can

range from soft and fluffy, to sticky and chewy, to hard and crunchy.

Kumukunsi is a similar native doughnut from the Maguindanao people. It is

made with rice flour, duck eggs, and sugar that is molded into rope-like

strands and then fried in a loose spiral. It has the taste and consistency of a

creamy pancake. Binangkal are simple fried dough balls covered in sesame

seeds.
 As well-known, most Pinoys loves eat sweets or desserts if they are

stress or having a bad mood, there are some who prefer the traditional sweet

treats we grew up eating, but nothing beats the ever delicious “Donut”. Donuts

have long been a beloved treat, but their role as a source of comfort during

stressful times, particularly for students, is worth exploring. For many

students, the pressures of exams, deadlines, and academic expectations can

lead to heightened stress and anxiety. In such moments, comfort foods like

donuts often serve as a quick source of relief, offering not only a momentary

escape but also a sense of familiarity and warmth.

A study by Smith et al. (2020) found that millennials and Gen Z

consumers are particularly interested in artisanal and innovative donut flavors,

as well as options that cater to dietary restrictions, such as gluten-free and

vegan donuts.

The doughnut business originated in the United States and has evolved

over the years. Originally, it was known as "doughnuts" because they were

made from a dough mixture. Doughnuts have a long history, with their roots

tracing back to Dutch settlers in America who made a type of fried dough

pastry. Over time, they have transformed into the sweet, round pastries we

know today. Doughnuts have gained worldwide popularity and have become a

favorite among teenagers and young kids due to their sweetness and variety
of flavors. They are hard for many people to resist, leading to a high and

growing demand

The donut market has shown significant growth over the past few years,

driven by increasing consumer demand for convenient and indulgent snack

options.

As stated by IBISWorld (2021), the donut shop industry in the United

States has experienced a steady increase in revenue, with a projected annual

growth rate of 3.5% from 2021 to 2026. This growth is attributed to the rising

popularity of gourmet donuts and the expansion of specialty donut shops.

Based on Wagner (2014) People seek out their own idiosyncratic comfort

foods when in negative moods, and they believe that these foods rapidly

improve their mood. There’s something about biting into a donut that instantly

transports you to a place of pure bliss. Whether you prefer the classic

simplicity of a glazed donut, the decadent delight of a filled donut, or the

playful goodness of a donut topped with sprinkles, these sweet treats have a

magical way of brightening even the gloomiest of days. Donuts are the

ultimate comfort food that brings joy to every bite.

The global donut market is expected to grow at a CAGR of 7% from 2023

to 2030, driven by rising disposable incomes and changing food preferences

(Cognitive Market Research, 2024).

 According to a report by Nielsen (2021), consumers are increasingly

interested in “food with a story,” seeking artisanal, small-batch products that

reflect authenticity and local sourcing. Donuts are no exception, with a

growing preference for handmade, gourmet donuts made with quality

ingredients.

DonutBreak will offer truly unforgettable mini donuts and will surely bring

happiness and satisfactions to the students and to everyone who wants to try

our mini donuts. We offer affordable and a budget friendly mini donuts with 10

delicious flavors that surely feel them love and special.

DonutBreak operates as a partnership business of dedicated students

pursuing Bachelor of Science in Hospitality Management. The proponents

include , Rubelyn Rivera from La Union , Jenelle Teodoro, Sheryl Tolete,

Desnelzen Robollos, Angel Tugade, Justin Singpet, Robelmar Valdez and

Philip Suyat from Pangasinan. Their shared commitment to the projects

success reflects the passion and drive behind the establishment’s mission to

help students reduce their stress by eating this Mini Donut.

The proposed business will be located in front of University of Eastern

Pangasinan, Barangay Canarvacanan, Binalonan, Pangasinan.

 Chapter Il

MARKET STUDY
When people are looking for a tasty snack, donutbreak food is a popular
choice among young people. This mini donuts will surely bring happiness and
satisfactions to the students and to everyone.

Business Product
DonutBreak has well selected several flavors of mini donuts such as
Choco Oreo, Chocolate, Chocolate with Sprinkles, White Almond, Choco
Almond, Classic, Strawberry, Matcha, and Matcha Lining. In addition to being
delicious, these little donuts are affordable, therefore suitable for the teachers,
students and residents.

Table 2.1 DonutBreak Merienda

Product Description
Product Price
Choco Oreo A chocolate donut
topped with crushed
oreo cookies for a P8
crunchy, chocolatey
experience.

Chocolate
A rich, soft chocolate
donut glazed with a P8
smooth chocolate
icing.

Chocolate with Sprinkles

A chocolate donut
topped with colorful P8
 sprinkels for a fun,
sweet crunch.

Chocolate with Almond

A chocolate donut P12

topped with crunchy
almond topping for a
nutty satisfying crunch.

White Almod

A donut with a creamy

white glaze and P12
a crunchy almond
topping.

Milky Lining

A donut glazed with a P8

creamy milk icing for a
rich, smooth flavor.
 Classic

A simple , soft donut

with a golden brown P8
crust and slightly
sweet flavor.

Strawberry

A soft fluffy donut with

a sweet, fruity P8
strawberry glaze.

Matcha

A sweet donut infused

with premium matcha P12
green tea.

Matcha Lining

A donut with a smooth

matcha glaze for a P12
subtle, sweet green
tea taste.

Pricing Strategy

Our pricing strategy is centered around ensuring affordability for our

primary customers, the students and faculty of University of Eastern

Pangasinan. Prices will be determined based on the cost of raw materials.

This approach allow us to offer budget friendly mini donuts that align with the

financial means of our target market.

Costing

Customers

The core customers of “Donutbreak” was the local residents, including

students, young professionals and busy workers in need of quick and savory

treat. We will also reaches out to our families and friends and tourists looking

for a cozy, flavorful break in the middle of their day.

Market Competition

Channel Distribution

Market Share
Survey Result
Product and Market Focus

Offering consumers a tasty and happy experience with DonutBreak is the

company's main priority. In addition to being a snack, DonutBreak can also be

eaten as a dessert. Filipinos in general adore sweets. Some menus that serve

DonutBreak are as follows: Choco Oreo, Chocolate, Cocolate with Sprinkles,

Chocolate with Almond, White Almond, Mikly Lining, Classic, Strawberry,

Matcha, and Matcha Lining.

DonutBreak target market includes the locals of Binalonan.

Pangasinan, The students, teachers and the residents of Canarvacanan

SWOT Analysis

A SWOT analysis presents a thorough examination of the DonutBreak

internal strengths and weaknesses as well as the external opportunities and

threats.

Strength

● Strong brand recognition and customer loyalty.

● Effective Communication and has Reasonably Priced.

● Delivering excellent customer service ensures customer satisfaction and

loyalty.

Weakness

● Dependence on a limited product range, which may not appeal to health-

conscious consumers.

● Compitators

● Lack of good ambiances unlike Starbucks and other cafes.

Opportunities

● Health friendly menu to attract customers.

● Social media marketing

● Costumer loyalty program

Threats

● Consumers attitudes towards unhealthy foods

● Increased competition

● Rising cost
Marketing and Sales Strategy

Distribution Strategy

To reach our target audience effectively, DonutBreak will encompass both

physical and online channels, strategically locating our store in front of

University of Eastern Pangasinan.

Advertising and Promotion

DonutBreak will use social media marketing. A strong presence on

social media platforms like face book, to provide real-time updates and

announcements about our business. This will helps students stay informed

about our availability and offerings. We will display posters also within the

school premise. These materials will comprehensively detail our products,

including prices and promo’s to ensure that our customers are well informed

about our offerings.

Figurer DonutBreak Facebook Page

Business Mission and Vision

Vision

"To be the go-to destination for donut lovers, known for our innovative

flavors, quality ingredients, and commitment to community happiness."

Mission

"To create delicious and delightful donuts that bring joy to every bite,

while providing exceptional customer service in a warm and welcoming

environment."

Business Logo
Figurer DonutBreak Business Logo

The name "DonutBreak" cleverly combines two concepts: "donut" and

"break." It suggests a delightful pause in your day whether it's enjoying a

sweet treat during a break at work, or simply taking a moment to savor a

delicious donut. The name conveys a sense of relaxation and enjoyment,

inviting customers to take a break and indulge in a fun, tasty experience.