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Fledgling doughnut maker Virginia Kay's calls it quits

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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
    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.
  • too bad
    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.
  • Sounds fishy to me
    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?
  • Too large of a space
    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!
  • doughnuts
    ...or your operating capital needs to be exceptional.
  • doughnuts
    ...whatever...
  • Tried them
    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.

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