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W W W. M A I N E B I Z . B I Z 25 O C T O B E R 5 , 2 0 1 5 Fine tuning the recipe e secret ingredient to Kellis' success may be in her willingness to take risks and make mistakes. Accurately forecasting doughnut demand was a major matter of trial and error. At first, Kellis adjusted production on the fly. But too often she would sell out before closing or end up with dozens of extras that she would have to donate. So she started tracking the factors that impacted consumer appetites. ere were seasonal fluctuations. And some trends defied logic. Sales dropped by 20% the week after Labor Day, but the next week they jumped by 10%. Any radical weather change dampened demand by 25%. Sales slowed on game days at Hadlock Field, which is near the Park Avenue store. In October 2013, Kellis made a bold change. She began dictating daily doughnut production each morning and closing up shop when she sold out. ough she has disappointed some custom- ers, the move has paid dividends. "We're not throwing away bags and bags of donuts like we used to," she says. Plus, staff is less stressed, as they no longer have to ramp up pro- duction as traffic fluctuates. She continues to fine-tune her forecasts. Her brother-in-law, Jeff Buckwalter, became general manager this year and they began tracking sales on an hourly basis. "We can be prepared before the day," she says. "And our profitability has gone up." ey continue to look for ways to trim costs. Recently, they started sourcing buttermilk, a key ingredient, from Casco Bay Butter. Prior to that, Kellis was buying buttermilk wholesale. e change saves e Holy Donut $1 per carton. "It's reducing waste for everyone," Kellis says. ese kinds of improvements are critical for the business to grow long term. Additional loca- tions and a central production facility may be in the future, Kellis says. After all, her brand is defined by premium ingredients and hand-made production. If she's going to use Callebaut dark chocolate and pay staff to zest lemons, peel sweet potatoes and puree berries from scratch, there will be tradeoffs. "My standards are so high, I would not tolerate low-quality ingredients," Kellis says. "at's some- thing we could never compromise." J e n n i f e r Van A l l e n, a w r i te r ba s e d i n Ya r m o u t h , c a n b e r e a c h e d a t e d i t o r i a l @ m a i n e b i z . b i z The Holy Donut 7 Exchange St. and 194 Park Ave., Portland Owner: Leigh Kellis Founded: 2010 Employees: 35 Revenue: $1 million Contact: 775-7776 www.theholydonut.com Medical Network Inc. (MedNet) is a Maine-based organization that has the power to lower your healthcare costs by providing a credentialed, low-cost, high access, preferred provider network. mainemednet.com 1 (800) 556-1144 3 questions to ask your broker about self-insurance Talk to your broker today and ask about self-funding your health plan. Many companies, even those with less than 50 employees, have saved thousands of dollars by self-insuring. Your broker can help set up a risk-assessment in your office. Get the information you need to design and control your plan. Discover ways you can implement a robust wellness program to reduce expenses. How can a wellness plan reduce my costs? 3 How do I set up a risk assessment? 2 Does it make sense for a company with less than 50 employees to self-insure? 1

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