scorecardI went behind the scenes at a world-famous doughnut shop. Take a look inside.
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I went behind the scenes at a world-famous doughnut shop. Take a look inside.

Erin McDowell   

I went behind the scenes at a world-famous doughnut shop. Take a look inside.
I visited the Holy Donut in Portland, Maine.Erin McDowell/Business Insider
  • I recently went behind the scenes at The Holy Donut, one of the most famous doughnut shops in Maine.
  • The Holy Donut opened in 2012 and has grown into a local institution.

Pushing through the front doors of The Holy Donut, I was greeted by the downright heavenly smell of fresh-brewed coffee and sweet icing.

It was a rainy August morning in Maine, but that hadn't stopped over a dozen customers from shaking off their umbrellas and stumbling through the doughnut shop's doors to get their hands on one of its famous donuts.

The Holy Donut opened in 2012 and has since grown into a Maine institution, with five locations across the state. It makes between 6 and 7 million doughnuts each year, according to its co-owner and CEO.

Making it as a small business isn't easy, but this doughnut shop in Maine may have found the recipe for success. The Holy Donut has been featured on television shows like "Man vs. Food" and gained a reputation for its unique potato doughnuts.

I visited the doughnut shop's Park Avenue location in Portland, the company's first shop, to see how its famous doughnuts are made.

"We could not be more fortunate, again, for the way this community has come around and kept this brand and run with it," The Holy Donut's co-owner and CEO, Jeff Buckwalter, told Business Insider. "When their friends, relatives, and family are vacationing here, we're one of the top two or three things to do in Maine."

Here's a look inside the operations of The Holy Donut and its plans for expansion.

I arrived at The Holy Donut in Portland at around 10 a.m. on a rainy Sunday.

I arrived at The Holy Donut in Portland at around 10 a.m. on a rainy Sunday.
The Holy Donut has five locations across Maine.      Erin McDowell/Business Insider

Despite it being a dreary day, customers were already lined up inside to grab their breakfast.

The Holy Donut was dreamed up by single mother Leigh Kellis in her apartment kitchen. After trying multiple different recipes, including one from the iconic cookbook "Joy of Cooking," Kellis came up with her own recipe for a doughnut using riced Maine potatoes.

The result was a doughnut that was heartier and heavier and didn't dry out as fast as a typical doughnut.

The business has since grown into a local institution with five locations and now has even bigger dreams, largely thanks to Buckwalter.

"I think a big part of our story is it's a wonderful American dream story. The family coming together and just figuring it out," he said. "Also, within a community that has — I don't know that it doesn't exist outside Portland — but has a rising tides mentality. Everybody is willing to help everybody."

I visited the oldest location on Park Avenue, but the doughnut shop on Commercial Street is its busiest.

I visited the oldest location on Park Avenue, but the doughnut shop on Commercial Street is its busiest.
The Commercial Street location gets the most foot traffic.      Erin McDowell/Business Insider

The Holy Donut, which employs over 120 people, has locations in Brunswick, Scarborough, Arundel, and two in Portland.

The location in Arundel is its commissary location, where 60% of The Holy Donut's products are made, including all of its gluten-free items.

Buckwalter told BI that the company's location in the heart of the Old Port neighborhood, right across from the pier, has boosted business and brand awareness.

"Commercial Street is one of three places I've always kept my eye on; if any of these three pop up as available, that's where we want to be," Buckwalter said, adding that the street has become the "nexus of the Old Port."

The Holy Donut was celebrating blueberry season when I visited in August.

The Holy Donut was celebrating blueberry season when I visited in August.
A sign advertised the doughnut shop's new blueberry flavors.      Erin McDowell/Business Insider

Blueberry season in Maine typically lasts from late July until early September, and blueberry festivals are held across the state in the late summer.

Buckwalter said The Holy Donut leans into seasonal, limited-time-only flavors, from its summertime blueberry flavors to apple cinnamon sugar doughnuts in the fall. It's an exciting time for customers to embrace the season and get their favorite flavors that they wait all year for.

During a tour of The Holy Donut's facility, I saw how the company is leaning into local.

During a tour of The Holy Donut
The Holy Donut used real Maine blueberries in its blueberry doughnut dough.      Erin McDowell/Business Insider

In the freezer, I saw how The Holy Donut uses real Maine blueberries in its famous blueberry doughnuts.

Buckwalter said that using local ingredients, like the Maine potatoes it uses in nearly all of its doughnuts, has become a huge part of creating The Holy Donut's brand as it positions itself for nationwide shipping.

"This is what we've always done, a handmade product. So it was like, how is that going to shift the image of our brand? And really, market research showed that the fact that the doughnuts are made by hand is not in the top five reasons," Buckwalter said.

"That it's fresh, that we lean into local, that we are family-owned, that we're kind and thoughtful in the community, all those things are far more important than that," he continued. "This is a from-scratch product every single day."

Buckwalter said they've tried to toe the line between innovation and retaining handmade quality.

Buckwalter said they
Employees at The Holy Donut cut and shaped all the doughnuts by hand.      Erin McDowell/Business Insider

Buckwalter said that while the company has made steps to automate some processes over the years, the doughnuts are still cut and shaped by hand — something he believes is integral, though not the most important aspect, to the company's brand.

The Holy Donut cuts and shapes all of its doughnuts by hand.

The Holy Donut cuts and shapes all of its doughnuts by hand.
Cutting and shaping doughnuts can be hard on the elbows and wrists.      Erin McDowell/Business Insider

"[The number of] personal injuries was crazy in the early years. We were breaking people. Because our absolute killers, like Campbell, he could hand-cut, when he's in the groove, 500 doughnuts a minute, like boom, boom, boom, it's a blur," he said.

"But that comes at the expense of elbows and wrists. So, first thing first, let's stop breaking our people. And then secondarily, for the scaleless things, we always knew we'd have to automate," he added.

The Holy Donut now makes millions of doughnuts each year.

The Holy Donut now makes millions of doughnuts each year.
Jeff Buckwalter said the company sells millions of doughnuts each year.      Erin McDowell/Business Insider

Buckwalter said that across its locations, they probably make around 6 or 7 million doughnuts each year. Demand is particularly high during the summer when tourism in Maine is at its peak. The stores each sell different quantities depending on their location.

"Our Arundel one is a very small, tiny retail," he said, adding, "Purchasing that was all about the commissary and its proximity to the interstate."

The hearty doughnuts vary in price.

The hearty doughnuts vary in price.
The doughnuts ranged in price.      Erin McDowell/Business Insider

Each doughnut is priced individually and ranges from $4.25 to $5.25. You can also order a half-dozen assorted donuts for $22 or a full dozen for $44.

The price may seem higher than your average doughnut, but thanks to the potatoes included in the recipe, I thought these doughnuts were heartier than other doughnuts I've had.

Next, Buckwalter hopes to expand The Holy Donut's brand through nationwide shipping and grocery-store products.

Next, Buckwalter hopes to expand The Holy Donut
Jeff Buckwalter said he hopes to expand the company's shipping and retail ventures.      Erin McDowell/Business Insider

"We are going to own the doughnut shipping space nationwide and we are going to be known as a very well-managed and scaled family company that now has a nationwide brand," Buckwalter said of his goals for The Holy Donut in the next five years.

He said that while the company has been in talks with massive distribution giants like Goldbelly, his team is starting off on a smaller scale by creating an online ordering system and shipping its own products across the country — an option that will be rolling out soon.

"We've perfected freezing our product, so that's been a complete game changer for us," Buckwalter said. "Now, these stores can really best be served as profitable marketing arms that drive traffic to our shipping, and drive traffic to our soon-to-be nationwide retail. We have a lot of work to do, but within a couple of years, that's a very real opportunity for us."

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