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Donut War: First Krispy Kreme, Now Dunkin' Donuts Is Moving Across From Family-Owned Baker's Donuts In Sacramento

SACRAMENTO (CBS13) — A donut dilemma is forcing a local mom and pop shop to cook up a new plan to stay alive.

They've already fought back some fierce competition, and now, more is on the way.

First, it was a Krispy Kreme, and now a Dunkin' is making Florin Road its new home right off Highway 99.

Suzy Hem's family has owned Baker's Donuts for 38 years.

"I've been doing this since I was 19 years old," she said.

And over the decades, they've developed a loyal base of customers.

"They've got so many regulars," said customer Toni Cano.

But eight years ago, a Krispy Kreme opened right next door, and many worried the corporate giant would drive them out of business.

But that didn't happen — Hem says sales actually got better.

"People go there and then come back to here because they know we have a good donut here," she said.

They've been able to stay competitive by offering items Krispy Kreme doesn't have like muffins, ice cream donuts, and cronuts.

"We have bacon, we have toast coconut, we have red velvet," Hem said.

Now, here comes more competition to try and cut into their dough. A new donut baker battle is about to happen here on Florin Road.

CBS13 obtained records showing a Dunkin' has filed plans to open across the street. We broke the news to Hem.

"Oh my God, are you kidding me? No," Hem said.

Now many wonder if the market can really handle three donut stores sprinkled on this block, and will customers' eyes glaze over with all the options.

"Three donut shops in one area, no, I don't like it," Cano said.

We reached out to Dunkin' for comment. A spokesperson says the store is scheduled to open in August and will be a franchise that has about eight employees.

We also asked why Dunkin' chose this block, but they left a hole in that answer and didn't respond.

So how worried is Hem now about profits plummeting?

"A little bit," she said. "We know we take care of our customers and make good donuts and people will come back."

Customers hope it's not the final twist for this longtime family-owned business.

"I like Baker's," Cano said. "I've been going there for years. They don't have to worry about me."

"We believe that we will make it, we're going to stay here," Hem said.

The new Dunkin' will feature a drive-through window and is attached to an existing Arco gas station.

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