Chain enters booming LV doughnut industry

Phil Levine

Wednesday, May 31, 2000 | 10:58 a.m.

Rob Adams says he always wanted to be an attorney.

But like many other Kansas City natives, Adams also confesses to an unrelenting lifelong affection for that city's LaMar's Donuts.

The allure of his hometown favorite proved too strong to resist, so Adams and three partners are investing their hopes and dreams in the sugary treat.

The partners plan to open Las Vegas' first LaMar's Donuts outlet in July at 9031 West Sahara Ave. in Summerlin.

Adams, along with partners T.J. Simonson and David and Linda Walker, obtained the LaMar's franchise for Clark County and plan to open a minimum of five stores over the next few years.

The 25-year-old Adams majored in International Business at UNLV, and says not everyone understood why he chose to forsake his dreams of law for a life of doughnuts.

"Some people thought we were crazy when we told them about our idea (for the doughnut franchise)," he said. "My parents are from Kansas City, so they understood. But others were a little more puzzled."

The idea to enter Las Vegas' doughnut wars was born during a trip Adams and Simonson made to Kansas City about two years ago.

"As a kid, I used to get excited about going to LaMar's for doughnuts, and when T.J. and I visited there he fell in love with them too," said Adams.

"We observed the doughnut craze happening here (Las Vegas), and thought 'you know, LaMar's would do awesome business in this city."'

LaMar's faces formidable foes for Las Vegans' doughnut dollars.

Winchell's Donuts, an established presence in this market, currently operates 12 Metro Las Vegas stores; nationally known Krispy Kreme Doughnuts Inc. recently opened its sixth Nevada store.

Adams said one of LaMar's most distinguishing features is that all doughnuts are made by hand, in contrast to the machines used by most other doughnut vendors.

Another distinction will be the variety; LaMar's will offer 75 doughnut flavors.

When Adams and Simonson approached LaMar's corporate office about obtaining the Clark County franchise, they were initially disappointed to learn that someone else already had the franchise rights.

"That's when we met up with David and Linda, who already had the rights, and they agreed to partner with us in the franchise," said Adams.

Those outside of LaMar's Midwestern hub market may not recognize the company name today.

However, that may soon change given LaMar's aggressive growth plans.

"We anticipate growing to about 1,200 stores over the next eight years," said Katherine Field, chief image officer for LaMar's.

That's a far cry from the company's current 27 retail stores. But Field is confident the goal can be accomplished through successful franchising efforts.

"We expect that about 10 to 20 percent of those stores will be company-owned, with the balance being franchises," she said. "One of our most aggressive markets will be Denver, where we are looking to have between 35 and 50 stores in the next few years."

The privately held company opened its first store in Kansas City in 1960. Founder Ray LaMar and wife Shannon decided to initiate the franchise program in the early 1990s.

"Today, we have a total of about 500 employees in all our stores," said Field.

LaMar's Donut International Inc. oversees the franchises; its parent is Lincoln, Neb.-based Franchise Consortium International.

Despite the company's determination to rapidly expand, Field is adamant that growth won't come at the expense of LaMar's family oriented corporate culture.

"If we can't grow at that (fast) pace and maintain what we want to about this company, we'll slow down our growth," she said.

"We won't sacrifice our quality for that fast-paced growth."

Field said no decision has been made about taking the company public, but "of course, we wouldn't rule it out."

Illustrative of the continued LaMar family influence is Ray LaMar's commitment to attend the opening of each new LaMar franchise.

"Ray is 84, but he still attends every one of our grand openings," said Field. "He also still serves as consultant for the company."

With his first Las Vegas store opening only a few weeks away, Adams said he has little time for anything else.

"This is a real time consuming effort," he said. "Now we're getting ready for the opening, and soon we'll be open from 5:30 a.m. to 6 p.m. seven days a week.

"I never thought I would say this, but for now it's safe to say that doughnuts really are my life."