Bay Area chain Johnny Doughnuts is closing half of its locations

Johnny Doughnuts, a Bay Area chain founded in 2012 as a food truck by Craig Blum and Kim Diamond, announced Monday that it will close half of its six locations effective Tuesday, November 10. The closures affect shops in San Francisco's Pacific Heights, Santa Rosa, and Santana Row in San Jose, the latter of which had been open for just over four months. Thirty-four employees will be laid off, according to the San Francisco Chronicle and The Press Democrat. Locations in San Rafael, Larkspur's Marin Country Mart, and Napa's Oxbow Public Market will remain open, along with the company's mobile events and catering business.

"We expanded too quickly," Blum, the co-founder and CEO, told the Chronicle. "The business couldn't support all these operations going forward." He said the decision involved "many tears shed and sleepless nights" but emphasized the company is "really determined to continue to serve the communities that we've been involved with for so long." In an email to customers, the owners wrote, "Over the past couple of years, we took on more financial obligations than our business could carry. That's on us."

The chain grew from a single San Rafael cafe in 2013 to seven total shops, including two opened this summer in San Jose and Napa. A Hayes Valley location opened in 2017 but closed in 2022, the same year the Pacific Heights shop opened. Santa Rosa opened in 2021. Earlier plans to expand to Petaluma and the East Bay never materialized. Blum told the Chronicle the company will focus on Marin and Napa locations because they see the strongest sales and foot traffic. Sara Segal, a company spokesperson, told The Press Democrat that no additional layoffs are being considered at the three remaining stores. Johnny Doughnuts, known for vegan and wheat-free options and local ingredients like Central Milling flour and Clover dairy, was named among Food Network's top five doughnut shops in America in 2015 and appeared on the Chronicle's 2025 Top Doughnuts list.