Local doughnut shops roll out merger deal

Dixie Donuts is known for its specialty doughnuts. (Photos by Michael Thompson)

Dixie Donuts is known for its specialty doughnuts. (Photos by Michael Thompson)

A Carytown doughnut shop has struck a sweet deal for a second location near Innsbrook.

Daylight Donuts at 10260 W. Broad St. began operating Jan. 10 as the second Dixie Donuts location, following a merger of the two companies.

That store and the original Dixie Donuts at 2901 W. Cary St. are now owned by the newly formed Community Dough and will continue to use the Dixie name.

The former Daylight Donuts at 10260 W. Broad St. is now Dixie's second location.

The former Daylight Donuts at 10260 W. Broad St. is now Dixie’s second location.

Lance Elwood and Joanne Ellis launched Daylight Donuts in 2010 as a way to complement their other company, Career Support Systems, an employment firm for people with disabilities. They eventually found running two businesses to be a tall order.

“We needed another operator in there to make that place work,” Elwood said of Daylight. “We just didn’t have the experience to be in the shop to grow it the way we wanted to.”

Elwood said he and Ellis approached Dixie Donuts owners Betsy Thomas and James Frank in the fall. Elwood and Ellis own a minority stake in Community Dough.

Elwood said Dixie Donuts, which launched in 2012, was looking to add yeast-risen doughnuts, like those made by Daylight, but needed more room.

“We kind of complement each other,” Elwood said. “We’re not in each other’s backyards.”

The original Dixie Donuts at 2901 W. Cary St.

The original Dixie Donuts at 2901 W. Cary St.

Thomas and Frank began unofficially operating the shop near Innsbrook in December to get a feel for the place before the deal was finalized. They will continue running the shop and maintain Daylight’s practice of employing workers with disabilities.

The Richmond doughnut scene has had plenty of action in recent months: Sugar Shack announced plans to open a second location downtown, and a second area Krispy Kreme is in the works at the Stonebridge Shopping Center on Midlothian Turnpike. In late 2013, several temporarily shuttered Dunkin’ Donuts shops reopened under new ownership.

The former Daylight Donuts spot is about 2,600 square feet and has about 17 employees. On a good day, it sells between 1,200 and 1,500 doughnuts. Both shops will carry the yeast-risen doughnuts featured at the former Daylight location and the specialty doughnuts for which Dixie is known.

Elwood said the new enterprise will look to raise its commercial sales and might eventually look to add another location.

Dixie Donuts is known for its specialty doughnuts. (Photos by Michael Thompson)

Dixie Donuts is known for its specialty doughnuts. (Photos by Michael Thompson)

A Carytown doughnut shop has struck a sweet deal for a second location near Innsbrook.

Daylight Donuts at 10260 W. Broad St. began operating Jan. 10 as the second Dixie Donuts location, following a merger of the two companies.

That store and the original Dixie Donuts at 2901 W. Cary St. are now owned by the newly formed Community Dough and will continue to use the Dixie name.

The former Daylight Donuts at 10260 W. Broad St. is now Dixie's second location.

The former Daylight Donuts at 10260 W. Broad St. is now Dixie’s second location.

Lance Elwood and Joanne Ellis launched Daylight Donuts in 2010 as a way to complement their other company, Career Support Systems, an employment firm for people with disabilities. They eventually found running two businesses to be a tall order.

“We needed another operator in there to make that place work,” Elwood said of Daylight. “We just didn’t have the experience to be in the shop to grow it the way we wanted to.”

Elwood said he and Ellis approached Dixie Donuts owners Betsy Thomas and James Frank in the fall. Elwood and Ellis own a minority stake in Community Dough.

Elwood said Dixie Donuts, which launched in 2012, was looking to add yeast-risen doughnuts, like those made by Daylight, but needed more room.

“We kind of complement each other,” Elwood said. “We’re not in each other’s backyards.”

The original Dixie Donuts at 2901 W. Cary St.

The original Dixie Donuts at 2901 W. Cary St.

Thomas and Frank began unofficially operating the shop near Innsbrook in December to get a feel for the place before the deal was finalized. They will continue running the shop and maintain Daylight’s practice of employing workers with disabilities.

The Richmond doughnut scene has had plenty of action in recent months: Sugar Shack announced plans to open a second location downtown, and a second area Krispy Kreme is in the works at the Stonebridge Shopping Center on Midlothian Turnpike. In late 2013, several temporarily shuttered Dunkin’ Donuts shops reopened under new ownership.

The former Daylight Donuts spot is about 2,600 square feet and has about 17 employees. On a good day, it sells between 1,200 and 1,500 doughnuts. Both shops will carry the yeast-risen doughnuts featured at the former Daylight location and the specialty doughnuts for which Dixie is known.

Elwood said the new enterprise will look to raise its commercial sales and might eventually look to add another location.

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