By Nur Fadhliana Shaari
JOHOR BAHRU, Oct 2 (Bernama) – Donuf founder Arron Teo has set a target to open 100 outlets nationwide by 2029 following the business’s positive growth since it began operations in April this year.
Donuf offers a hybrid bake that combines a doughnut with puff pastry.
“It currently has two outlets at Jalan Dhoby and Larkin Sentral, with monthly sales reaching as much as RM70,000,” Teo said.
Two additional outlets at Angsana Mall and Senai International Airport are expected to open by the end of this year. Another six will follow next year. Teo, 32, targets to raise the number of outlets to 20 by 2028.
“Johor will be one of our key markets, with a target of at least five outlets before we expand to Kelantan, Terengganu, Kuala Lumpur, Melaka, Sabah and Sarawak,” he told Bernama at the Jalan Dhoby outlet.
Teo said Kelantan and Terengganu offer strong potential, following customer demand from both states.
Opening a Donuf outlet involves an investment of about RM400,000, excluding recipe development costs and research and development (R&D) expenses.
Donuf began operations in April this year after more than a year in product development, recipe trials and R&D.
Teo said the idea for Donuf emerged more than a decade ago when he noticed that his friends often had to choose between enjoying a doughnut or a puff pastry.
“I have many Malay friends, and they enjoy eating doughnuts and puff pastries. So I thought, why not combine the two so people can enjoy the taste of a doughnut, along with the cream and crispy texture of puff pastry, in a single product?” he said.
He found business partners and secured sufficient financial resources to develop the product.
Teo experimented and modified the recipe more than 20 times daily to achieve the right taste and texture. He also gathered feedback from friends and customers.
“We asked them to try the products without telling them the combinations. They gave their feedback, and I combined their various suggestions to improve along the way,” he said.
Donuf has 12 flavours currently, of which eight were introduced initially. This includes cocoa, Bebe Berry, Vani (vanilla), Gaya Kaya, Matchi, Lemo, Ono and Garu-Garu. Chocolate and strawberry flavours are among the most popular.
He said Donuf currently sells about 300 to 400 pieces a day on weekdays, with sales of between 600 and 700 on weekend days.
Sales are higher at the Jalan Dhoby outlet due to better traffic, especially at night, compared with the Larkin Sentral location. Teo’s initial marketing strategy was to focus on the Jalan Dhoby area.
Teo, who hails from Batu Pahat, has more than 17 years of experience in the food and beverage (F&B) sector. He said establishing Donuf has helped him significantly in areas such as cost management, operations and business development.
The youngest of five siblings, he focuses on attitudes, skills and work commitment when hiring. He currently has more than 10 workers aged between 18 and 27 years old.
-- BERNAMA