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Fledgling doughnut maker Virginia Kay's calls it quits

 IBJ Staff
November 9, 2011
Keywords
Food manufacturers, Manufacturing & Technology, Real Estate & Retail, Restaurants, Retail, restaurant closings
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Virginia Kay's, a year-old Indianapolis-based doughnut manufacturer that opened a cafe at 2402 N. Meridian St. in September, has gone out of business.

The company, which had a doughnut-production facility on the east side, posted a notice Wednesday on its website: "Virginia Kay's last day of operation was Wednesday, November 9, 2011. Though we received an overwhelming amount of local support, sales could not sustain a production facility of our size."

The company is owned by brothers Mike and Russ Ferrell, who named the business after their late mother.

Virginia Kay's opened the retail shop in a 1,969-square-foot building formerly occupied by Bonjour Cafe & Bakery, which closed in the summer of 2009. IBJ reviewed the eatery on Oct. 29.

The company targeted retail, food-service, catering and fundraising clients with its production facility.
 

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  • dough
    DudeNovember 10, 2011 7:10 PM
    You need to think of MARGINS. A fairly new, one-unit, local brand doughnut and sandwich shop, in that neighborhood would be hard pressed to generate enough sales to pay for that space. (my guess is the rent was 3-4k)


    Those are low ticket items. You would need to sell 1000 doughnuts a day out of that place to even have a shot.
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  • too bad
    ChrisNovember 10, 2011 4:57 PM
    Watched the articles in the star about these guys. I had high hopes for them. Did not know how selling doughnuts during this era would work. Coffee doughnut and a cigarette used to be sooo delicious, at 40 its decaf, a banana and dont even think about a smoke.
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  • Sounds fishy to me
    Innocent BystanderNovember 10, 2011 3:48 PM
    This just doesn't sound right to me. I understand not being able to support or sustain a retail operation, but to close the production facility too? How did that go under so quickly?
    Reply to CommentFlag Comment
  • Too large of a space
    PJNovember 10, 2011 2:08 PM
    This is a shame that they closed so quickly. It's not a surprise. The doughnuts were made off site, the store was simply too large for them. And the hours didn't make much sense. Why does a doughnut shop/sandwich shop need to stay open from 5am-11pm every day? I would place the doughnut quality somewhere between Dunkin & Longs. Nothing extremely great, but I would have chosen them over Dunkin any day.

    Perhaps Jack in the Box should take this location... it already has a drive through!
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  • doughnuts
    Cathy PilarskiNovember 10, 2011 7:48 AM
    ...or your operating capital needs to be exceptional.
    Reply to CommentFlag Comment
  • doughnuts
    Cathy PilarskiNovember 10, 2011 7:47 AM
    ...whatever...
    Reply to CommentFlag Comment
  • Tried them
    A SweetNovember 10, 2011 5:43 AM
    We gave them a try when they opened the cafe. There was just nothing different about either their donuts or food to try them again. To survive, I think you need to be exceptional or inventive, I found neither.
    Reply to CommentFlag Comment

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    1. Saw the Indy Men's Chorus "Music of Gilbert & Sullivan" at the Indiana Historical Society on Sunday evening.

    2. Temporary workers are not "tools" they are people and companies that keep large amounts of temp staff are cheating.

    3. I miss having them around. I hope one of their stores is in the general Meridian/86th Street area. I will make good use of it.

    4. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

    5. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

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