Duck Donuts, a doughnut chain founded in 2006 that has grown to more than 100 locations throughout the country and internationally, has confirmed layoffs at its corporate headquarters in Mechanicsburg, Pa. The exact number of jobs impacted was not disclosed.
“Duck Donuts continues to grow and develop as a brand. This requires continuous reallocation of staff, to properly support our franchise system. Positions within Duck Donuts headquarters were evaluated and necessary changes were made for the company to remain on a growth trajectory,” a spokesperson wrote in a statement emailed to Nation’s Restaurant News.
The spokesperson also confirmed that Betsy Hamm has resigned as chief executive officer. Hamm joined Duck Donuts’ marketing department in 2016 and was promoted to chief operating officer in November 2017. She was named CEO in April 2021, when Duck Donuts was acquired by an affiliate of NewSpring Capital, a private equity firm based in Radner, Pa.
“Duck Donuts appreciates Hamm's leadership she provided throughout her years with the company,” the spokesperson said.
In a LinkedIn post, Hamm wrote: “Eight years ago, my Duck Donuts journey began after meeting the founder and seeing the incredible potential of a brand with a deeply loyal fan base and superior product … From 20 locations to nearly 200, spanning new markets and countries, it has been an extraordinary ride! It hasn’t always been easy, but the people have made it truly special. … Serving as CEO for nearly four years has been the greatest honor of my career, and I couldn’t be prouder of how far Duck Donuts has come. As with any great story, this one is turning the page to a new chapter for me. I’ll be cheering on the team and the franchisees as they continue to sprinkle happiness around the globe! Here’s to the future and the opportunities ahead—both for Duck Donuts and for me.”
The company has grown significantly since the NewSpring Capital acquisition, with more than 100 locations in 28 states and Puerto Rico, as well as 12 international locations. Duck Donuts experienced a 10% year-over-year sales increase from 2022 to 2023, finishing the year at $66.6 million, and an 11.3%-unit count increase in the same period, according to Technomic Ignite data.
Its five-year compound annual growth rate for sales is 10.1%, which outpaces categorical peers like Krispy Kreme (up 9.3%), and Auntie Anne’s (up 6.4%). That said, Duck Donuts’ average unit volumes are well below similar concepts. Krispy Kreme’s AUVs at the end of 2023 were $2.45 million, for instance, while Duck Donuts was around $580,000. Shipley Do-Nuts’ AUVs are around $870,000.
There have been several news reports about permanent closures in the Duck Donuts’ system in recent months, including Charlotte, N.C., in October, Louisville, Ky., in November, Akron, Ohio, in December, Tallahassee, Fla., in April, and others.
Contact Alicia Kelso at [email protected]
