South-side doughnut shop Ray’s Donuts is under new ownership.
Ten-year owner Bill Risberg sold the shop, 3654 S. Campbell Ave. in Kickapoo Corners, to Marty Witt on May 1 for an undisclosed amount. Witt, a first-time business owner, said he and his family recently moved to the Springfield area from Warrensburg, southeast of Kansas City.
“We were looking to move, and the business was available. I was able to work out an acceptable agreement from the previous owner,” Witt said, noting Kingsley Group business broker Laura McCune represented him on the deal.
Ray’s Donuts was listed for sale by Kingsley Group, and McCune said the transaction was finalized in 30 days. Terms of the deal were not disclosed.
“We had a good buyer and a good seller that were willing to work together to get the deal done,” McCune said. “We walk our buyers and sellers all the way to the closing table.”
McCune said the sale is representative of a trend toward “main street” businesses – those listed for less than $1 million – as potential buyers become more comfortable with the economy.
“We’re seeing a good part of the population that are looking for middle-market main street businesses,” McCune said. “There’s a greater market for this than anything larger.”
Witt said he is keeping the Ray’s Donuts recipes that he purchased along with the business, and he has no immediate plans to change the name.
Aside from selling doughnuts retail, Witt said Ray’s Donuts serves more than 30 delivery accounts, including Rapid Robert’s, Signal Food Stores and Express Mart. Operating under Witt Stores LLC, the company also delivers to Summer Fresh, its sole supermarket account.
Prior to the purchase, Witt worked as a superintendent and a principal in several school districts, including Walnut Grove and Bradley.
Witt said he was able to gain business knowledge from these positions.
“I have a lot of business experience as a superintendent, so that will come in handy,” Witt said. “I learned a lot about management from being a principal.”
Witt said the Springfield store employs nine, two of which are recent hires, and the employees were offered their same positions under his ownership.
Risberg had owned the doughnut shop since 2002, when it operated as LaMar’s Donuts. Risberg bought the LaMar’s franchise rights for $175,000 from Kevin Keyes, who operated the store since 1998. He broke away from the LaMar’s chain in late 2010, after about a year of dissatisfaction with LaMar’s that resulted in Risberg withholding his annual franchise fee, roughly $30,000 at the time.
Risberg said he changed the name to Ray’s Donuts in the honor of Ray LaMar, who opened the original doughnut shop in 1960 in Kansas City.
Risberg and his company, Risberg Stores LLC, recently had federal tax liens against them totaling nearly $50,000, and he said proceeds from the sale paid off the liens.
Risberg now resides in St. Louis where he is working for a Ray’s Donuts that is not affiliated with the Springfield store.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
