Groovy Donuts: 10 Years of Sweet Success
When Andrew Gauthier opened the doors of Groovy Donuts in Williamston in 2015, he wasn’t chasing a trend or recreating a franchise model. He was filling a void he felt personally. After lunch one afternoon, he and his dad went searching for a good donut and cup of coffee — something handcrafted, fresh, and full of character. But all they found were chains and convenience stores. “Nothing seemed worth the money or the calories,” he remembers. “I figured I can’t be the only one who feels this way.”
That spark of irritation turned into inspiration. That same night, Andrew sat down and started drafting a business plan. The idea crystallized quickly: an old-school community donut shop with a fun, nostalgic vibe — one that captured the joy, color, and creativity of the 1960s and 70s. And, of course, one that delivered an elevated donut experience every single day.
Within a year, Groovy Donuts not only opened its first shop in Williamston but also launched a second location in East Lansing. This year, the business celebrates 10 years — an impressive milestone for any small business, but especially meaningful for a bakery that started with nothing but a dream, a business plan, and a whole lot of faith.
Crafting Donuts the Old-School Way
Walk into Groovy Donuts, and you can smell the difference. Andrew and his wife and business partner, Monica, built the shop around a philosophy many modern bakeries have abandoned: dedication to freshness and quality above all else.
“Freshness is number one,” Andrew says. “There’s nothing you can do to fix a donut that’s past its prime.” For the first eight years, the couple baked overnight, finishing just as customers were getting ready for their morning coffee runs. It was grueling, but they refused to compromise.
They still use high-quality ingredients such as premium Madagascar vanilla and carefully selected sugars and flavorings. Their fryers are cleaned and filtered daily. “If you walk into a donut shop and the fryer oil is darker than their coffee, you might want to walk out,” Andrew jokes.
Customers clearly taste the difference. Classic items like their apple fritters — made in the “old school” style taught to them by a former donut shop consultant — have developed a cult following. So have their creative flavors, including the Fruity Pebbles donut, a playful experiment that became so popular it earned a spot on the daily menu.
Some customers have ordered the exact same donut for nine straight years. Others line up each week for the new “Donut of the Week” release. But no matter their taste, one thing unites them: the donuts never disappoint.
Growing a Business and a Community
Before launching Groovy Donuts, Andrew built a career in investment banking and later financial planning. He knew numbers, strategy, and finance. Baking professionally? Managing a team of 30? Navigating the complexities of HR, operations, and licensing? That part he had to learn from scratch.
“That was one of the biggest challenges — getting acclimated to managing a really diverse staff,” he says. “You have high school students, retirees, college kids, career changers… all with different expectations and motivations. You have to meet people where they are while still maintaining fairness and consistency.”
In the early years, Andrew admits he tried to figure out everything on his own. Today, he’s the first to tell other entrepreneurs: don’t do that. Ask for help early and often.
How MWF Helped
Andrew’s initial challenge wasn’t just learning the industry — it was getting financing. “Most banks don’t like lending to food businesses,” he explains. “And they especially don’t like lending to someone who’s never run one.”
That changed when he connected with MWF. The lending team saw potential in Andrew’s business plan, financial projections, and vision. He was approved for a small business loan — funding that was instrumental in opening the first location — and later an additional loan to expand into East Lansing.
MWF has now supported Groovy Donuts through two critical growth moments. “They were comfortable with my financial background even though I lacked food service experience,” Andrew says. “They believed in the vision.”
What Comes Next
A decade in, the business is only getting groovier. Now customers can stay home and order their Groovy Donuts from a delivery app. “We have the capacity to make a lot more donuts,” Andrew says. “Now it’s about getting them into more hands.”
For Andrew, the heart of Groovy Donuts remains unchanged: bringing people joy. “Donuts are fun,” he says simply. “They bring happiness. And we’re grateful we get to do that every day.”
Get the support you need to scale your business. Learn about MWF’s microloans for entrepreneurs.
