Former McDonald’s worker builds $8 million doughnut empire while living off 2-minute noodles

 


Kristy Bannister landed her first job at McDonald’s at the young age of 15.

Over the next 17 years, she worked in every area of the store, from flipping burgers in the kitchen to running the restaurant as the manager before pursuing a role in the National McCafé Operations.

Little did she know the fast-food chain would lead her to a multi-million dollar doughnut empire.

Speaking to 7Life, the 37-year-old - dubbed the “donut queen” - detailed how the secret of her success was starting out in life with a humble job at Macca’s.

Kristy Bannister has built a multi-million dollar doughnut empire. She credits her humble job at McDonald’s is the secret of her success.
Kristy Bannister has built a multi-million dollar doughnut empire. She credits her humble job at McDonald’s is the secret of her success. Credit: Kristy Bannister/Supplied
Kristy landed her first job at McDonald’s at the age of 15. Over the next 17 years, she worked in every area of the store, from flipping burgers in the kitchen to running the restaurant as the manager before pursuing a role in the National McCafé Operations.
Kristy landed her first job at McDonald’s at the age of 15. Over the next 17 years, she worked in every area of the store, from flipping burgers in the kitchen to running the restaurant as the manager before pursuing a role in the National McCafé Operations. Credit: Kristy Bannister/Supplied

“After humble beginnings of starting as a crew trainer at 15, I progressed to different roles. At 19, I became a Macca’s manager and I worked as much as I possibly could to pay for university,” Kristy told 7Life.

“I studied marketing and had always thought that when I completed my degree I would be pursuing a job in that field, but I actually found that I really loved learning about how the business operated, and how to lead a team.

“So I stayed on and started a career with McDonald’s. It’s what gave me my first taste of running a business.”

For nearly two decades, Kristy learned the ins and outs of the fast-food chain before she found herself working in the McCafé department.

“Our plan was to actually open a café that sold doughnuts on the menu. At the time we couldn’t find a suitable doughnut option so we decided to have a go at making our own,” she said.

“From no experience in baking or pastry, the finished product was pretty good so we developed a brand of doughnuts that we could sell exclusively through our café to draw customers in.”

And that’s how Dr. Dough Donuts was born.

Dr. Dough Donuts was born six years ago after she started out in life with a humble job at Macca’s.
Dr. Dough Donuts was born six years ago after she started out in life with a humble job at Macca’s. Credit: Kristy Bannister/Supplied
The business has cemented itself as Sydney’s go-to gifting destination, with same day delivery being their point of difference, offering doughnuts, wine, balloons and all things gifting
The business has cemented itself as Sydney’s go-to gifting destination, with same day delivery being their point of difference, offering doughnuts, wine, balloons and all things gifting Credit: Dr. Dough Donuts

Kristy and her husband Geoff - who she met while working at Macca’s - strategically created the business separately from the chain’s café.

“We deliberately branded and marketed the doughnuts separately from our café to keep the door open for the potential of both businesses being able to stand on their own in the future,” she said.

“And that turned out to be a smart move as it was quickly realized that Dr. Dough would be the scalable brand of the two.”

The duo started the brand “out of a ghost kitchen” in Potts Point.

‘There were many dinners of two-minute noodles’ - Kristy Bannister

But the journey to success didn’t come too easy for the couple.

“We saved every single cent for two years prior to starting so we were able to pay for everything upfront. We had saved up our sleeves because we didn’t know what to expect. Our savings was used up very quickly,” she said.

“There were many dinners of two-minute noodles and we lived above our café for two years in a small room.

“We’d forgone a steady income and superannuation for a long time, no annual leave, sick leave, and definitely none of the perks of a corporate position. We made a decision to reinvest every single cent back into the business.

“We went through a tough few years but we wouldn’t change a thing. We still make sacrifices every day but that’s all part of running a business.”

Kristy and her husband Geoff launched the doughnut brand six years ago.
Kristy and her husband Geoff launched the doughnut brand six years ago. Credit: Kristy Bannister

As the business took off, the couple moved into a dedicated manufacturing facility and dispatch site with a separate office location.

During COVID, the doughnut delivery service saw a huge spike in orders.

“Each lockdown has actually given our business a boost,” she said.

“Our purpose is to share happiness by enabling easy and meaningful connections, so we feel privileged to have been able to keep people connected through the toughest times we’ve all faced.”

‘We went through a tough few years but we wouldn’t change a thing’ - Kristy Bannister

Like any start-up business, Kristy says she faced plenty of challenges along the way.

“We’ve been scammed, robbed, and had a notorious conman try to buy the business all in the first three years,” she said.

“But we wouldn’t have had it any other way. It has given us a very tough skin, red hot bulls *** radar and has given us some very entertaining tales to tell.”

Fast forward, the business has cemented itself as Sydney’s go-to gifting destination, with same-day delivery being their point of difference, offering doughnuts, wine, balloons, and all things gifting.

The brand offers doughnuts for all sorts of occasions, ranging from birthdays and “get well soon” to Valentine’s Day and Lunar New Year.

The brand is now taking one order every two minutes - and it’s on track to make $8 million in sales this financial year.

“We feel incredibly proud to see the brand gain so much momentum,” she said.

“When we first started I could have only dreamed about where we are now and our future plans, but once you arrive at that point it just becomes the new normal and you keep going and keep setting new goals.

“There has never been a moment where we’ve thought, ‘ok we’ve arrived. You pat yourself on the back for the win and keep the vision stretching further and further.”

As the business took off, the couple moved into a dedicated manufacturing facility and despatch site with a separate office location
As the business took off, the couple moved into a dedicated manufacturing facility and despatch site with a separate office location Credit: Dr. Dough Donuts

And she says she owes it all to her 17 years of working at McDonald’s

“McDonald’s gives you the opportunity to run a $10 million dollar restaurant, responsible for 200 staff members, workplace safety, profitability, everything, with the added potential of progressions,” Kristy said.

“Not many businesses give you that responsibility or opportunity. It gave me the grounding of how to run a business the right way.

“In the end, Geoff and I thought it was time for both of us to move on and put our minds to use in a different way.”

‘We’d wake up between 1am and 3am every single day to start work’ - Kristy Bannister

And while her years of hard work have finally paid off, Kristy says she still gets up in the early hours of the morning to start work.

“My husband and I wake up between 1am and 3am every single day to start work. The most critical part of the day for us is the early morning production,” she said.

“Everything needs to be timed to precision to have each order ready for dispatch by 6am so we like to be available to the team over our peak.

“Sometimes it’s hands-on but most times it’s the best time for me to work on branding, admin, suppliers, so by 7am it’s normally time for a run, and then I can focus the rest of the day spent with the team.”

While her years of hard work finally paid off, Kristy says she still gets up in the early hours of the morning to start work
While her years of hard work finally paid off, Kristy says she still gets up in the early hours of the morning to start work Credit: Dr. Dough Donuts/Supplied

She normally heads home each day at around 4pm - and she’s usually in bed by 6.30pm.

“Although we have unusual sleep patterns and most times not much sleep, I feel energised to get up and get the day started,” she said.

“We know exactly where we want the brand to be so we love working on that every single day.”

‘Owning a business is not always as glamorous as what it looks like on Instagram’ - Kristy Bannister

For those looking to start their own brand, Kristy warns: “It takes a lot to run a business, no matter the size of the business - all of them face the same challenges, just on different scales.

“It’s not for everyone, but it’s incredibly rewarding for the right person. Sometimes it’s easy to fall into the fantasy of ‘working your own hours and ‘being your own boss’, but more often than not, owning a business is not always as glamorous as what it looks like on Instagram.

“I’d just encourage people thinking about starting a business to do so equipped with information on what reality looks like and to do so cautiously.”

She added: “Your customers will actually guide and dictate what you become if you pay close enough attention and are willing to adapt. During our six-year journey, Dr. Dough has had to twist and bend according to what customers have asked for.

“The fundamentals of our business and values around customer service, operations, and logistics have always stayed the same, but it was how we market, package, and deliver the final product that has changed over time.”

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