Betsy Hamm never planned to be the CEO of a donut brand, but now she’s planning her company’s rapid expansion.
Now a year and a half in as chief executive, Hamm took the helm a pivotal time. Duck Donuts had been acquired by NewSpring Capital, and the brand had just reached 100 units.
“The first year was really tough,” Hamm said. “Being in a new role with new ownership and hitting the 100 locations was a big milestone and all of it culminated at one time. We had to take a stop and look at everything we’re doing and what we need to do now to get to 200, 300 locations.”
That’s included tackling everything from development of a cohesive brand identity to rebuilding the brand’s website and social media presence, creating seasonal promotions and more.
While the role was new to Hamm, being part of a company focused on producing treats isn’t. Before Duck Donuts, the Pennsylvania native worked at the Hershey Company, where she held various roles in marketing.
“It was an amazing brand that was well established, but I always kept my ear open if there was something else interesting out there,” Hamm said.
Hamm learned Duck Donuts would be opening its corporate headquarters in Mechanicsburg, Pennsylvania, not far from the city of Hershey. The made-to-order donut concept was founded in 2007 in Duck, North Carolina, by Russell DiGilio and has been franchising since 2013.
“I had never heard of Duck Donuts at the time, as they were really just in the Outer Banks in North Carolina,” Hamm said. “I ended up contacting two friends who go there every year and they were so emphatic about it.”
After meeting with DiGilio, Hamm joined Duck Donuts in 2016, when it had just 22 locations.
Made-to-order donuts with dozens of topping combinations are core to the Duck Donuts business model.
“I think it was a bit of a culture shock for both of us,” Hamm said. “Coming from a large corporate company with a lot of people and big organizations, to being the 12th employee they hired and the first outside that friends and family circle. But I came in and was able to build the marketing team and the strategy.”
Hamm led marketing for about a year before being promoted to chief operating officer. Then, when the coronavirus pandemic hit, she stepped up again.
“Russell was really taking a step back during that time and was letting me run the show, so it was almost like a good test for both of us,” Hamm said. “Some days were crazy, other days were amazing, but it was really cool being able to build this brand across the globe.”
When NewSpring, a Philadelphia-based private equity firm, acquired Duck Donuts in 2021, DiGilio decided to step down and Hamm threw her hat in the ring.
“If someone had told me seven or eight years ago that I’d be a CEO of a donut franchise, I’d say ‘I don’t think that sounds right,’” Hamm said. “I grew up in a marketing sort of role, but as I was exposed more to the business of Duck Donuts, I realized so much of it is about marketing, sales and growing the brand.”
Today, Duck Donuts has 108 units in the United States and two international stores, in Canada and Saudi Arabia. In 2021, the brand had $56 million in system sales, and Hamm said the past year has seemed even better.
“The last 11 months have taken us to a whole new level,” Hamm said in a November interview. “I’ve always been a fan of figuring out what our strategy is and then working on that structure to support that whole process. The year 2022 has been really good to us, but I’m really excited about 2023, because now all of the puzzle pieces are coming together.”
As the brand prepares to open 45 new Duck Donuts locations in 2023, Hamm said it will also continue to support the growth of existing franchisees, most of whom are single-unit operators.
“We’re focused on making sure their AUVs are strong and that we’re increasing their profitability and the value of the brand for our franchisees,” Hamm said. “If we do that, we’ll all be successful.”
Average unit volumes were $554,299 in 2021, up from $503,976 in 2019. The cost to open a Duck Donuts store ranges from $388,566 to $567,491.