Johnny Doughnuts Closes Half of Its Bay Area Locations
“The road ahead will take work, but we’re committed to it, and we’re grateful you’re here with us,” said co-founders Craig Blum and Kim Diamond.
Johnny Doughnuts is closing three of its six Bay Area locations, the company announced on Monday. Its menu features raised doughnuts made with fresh potatoes, vegan and wheat-free options, cinnamon rolls, jelly doughnuts, and the crodough, a croissant-doughnut.
The decision to shutter these shops follows a period of rapid expansion for the doughnut chain. Co-founders Craig Blum and Kim Diamond cited overextended financial obligations in an email sent to customers, stating, “Over the past couple of years, we took on more financial obligations than our business could carry. That’s on us.”
Storefront Closures Lead to 34 Employee Layoffs
The reduction in storefronts has resulted in the layoff of 34 employees, according to the San Francisco Chronicle. Company spokesperson Sarah Segal confirmed that Johnny Doughnuts is committed to supporting the staff members affected by these closures.
While three locations have ceased operations, the chain’s remaining shops in San Rafael, Larkspur’s Marin Country Mart, and Napa’s Oxbow Public Market will remain open. Segal noted that catering and events will continue as planned, with no additional layoffs currently under consideration for the remaining sites.
Quick Expansion Creates Financial Pressure for the Chain
The chain’s expansion strategy faced recent challenges, particularly regarding its newest locations. The San Jose shop at Santana Row opened only four months ago, and the company also debuted a new store in Napa this past August.
CEO Craig Blum told the San Francisco Chronicle that the company “expanded too quickly.”
The business, which first launched as a food truck in 2012, had previously been recognized by national outlets such as Thrillist, Forbes and the Food Network, which ranked the chain among the nation’s top five doughnut shops in 2015. Despite the recent closures, the company stated it plans to focus on its core shops in Marin and Napa, where the brand reports its strongest sales and foot traffic.
Questions About Johnny Doughnuts Locations and Closures
Which Johnny Doughnuts locations are still open?
Customers can still visit the flagship store in San Rafael, the Marin Country Mart location in Larkspur, and the shop at Oxbow Public Market in Napa.
Why did the company decide to close these specific shops?
Co-founders Craig Blum and Kim Diamond stated that the business took on more financial obligations than it could sustain.
They intend to focus resources on their core locations to ensure long-term health for the brand.
Are there any more closures expected?
Spokesperson Sarah Segal stated that no additional layoffs are being considered at this time, and the three remaining shops will continue operating as usual.
Did you know?
The chain subsequently opened a Hayes Valley location in 2017 and a Larkspur site in 2018, followed by a Marin County shop in 2019 and further expansions into Sonoma and Napa counties between 2021 and 2026. The Pacific Heights location on Fillmore Street, which closed Tuesday, had originally relocated from the Hayes Valley shop in 2022.
