Baker Boy Brings Investment, Jobs and $15M in Donuts to North Dakota…All Thanks to Tax Reform

Baker Boy—a family-owned baked goods manufacturer in Dickinson, North Dakota—is using tax reform to grow its company, develop new product lines and continue to create highly skilled jobs in manufacturing for the people of North Dakota.

First on the docket? The complete reinvention of the filled donut.

Ready to Ice Magic Ring Bavarian Creme Filled Donuts. This innovative donut comes already injected with Bavarian Creme filling. 

“When tax reform came around, we had our accountants investigate how much money we’d save per year,” explained Guy Moos, president of Baker Boy. “When we found out our savings would be so significant, I thought, ‘What can we do to reinvest that and grow our business?’”

The answer turned out to be Magic Ring Donuts—Baker Boy’s latest product innovation that promises to shake up the donut market. Magic Rings are special jelly or crème-filled donuts that still looks like a regular donut with a hole in the middle, but the ring itself is injected with filling, using new technology that’s only recently been introduced overseas.

“We’ll be the first company in North America to produce these types of donuts,” Moos said. “We’re taking advantage of tax reform by writing off the new equipment and reinvesting our savings in the business. Over the next three years, we’ll invest $13 million in growing our business—including $9 million over the next 18 months. It’s a huge project, but we know tax reform will allow us to grow sales pretty significantly.”

The new investment will increase Baker Boy’s donut production dramatically.

“Right now, we can produce 5,000 donuts per hour,” said Moos. “By investing in more modern technology, we’re upping our capacity to 22,000 donuts per hour. That’s about $15 million additional sales of donuts every year.”

The huge increase in production not only makes Baker Boy more competitive in the donut business, which has historically been a small part of its revenue, but it’ll also help bring well-paying, highly skilled manufacturing jobs to North Dakota.

“As we grow, we’ll need workers to deal with the increased demand down the road,” explained Moos. Moos points out that these will be skilled jobs—and that Baker Boy already offers salaries that are nearly double what its competitors pay.

“We start our employees at $17.75 an hour for entry-level jobs, and we continue to pay the costs of health insurance for our employees,” said Moos. “We’ve always believed in being a good corporate citizen.”

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