Competition and Market Saturation: Intense competition from other donut chains, coffee shops, grocery bakeries, and quick-service restaurants could limit growth and erode market share.

Rising Ingredient and Operating Costs: Fluctuations in the price of key ingredients such as sugar, flour, and cooking oil, along with increasing labor, energy, and transportation costs, could significantly impact profitability.

Shifting Consumer Health Preferences: Growing consumer awareness of health and wellness trends may lead to reduced demand for high-sugar, high-calorie products, posing a long-term challenge to sales growth and requiring product innovation.