Donuts can be an ideal food to sell at fairs and festivals for a number of reasons. The main point is that you are selling something different than the competition in the other trailers. People get tired of seeing the same old offerings like hot dogs, corn dogs, nachos, and pizza. Marketing research has consistently indicated that to a consumer, seeing something "different" in a background of "same" will at least bring you attention. Then it's your job to hook them on the product.
People at fairs and festivals are a captive audience. Do they usually bring their own food from home to eat while they walk around? No! They look for something tasty. When they get hungry they buy food rather than leave. And the donuts you will sell will be small, bite-sized delicious morsels of flavor. People buy a bag and walk around eating them one at a time. Think about these questions. Which is easier to eat while on the move? A piece of pizza, a funnel cake, a hamburger, nachos, or a bite-sized donut? What can be easily wrapped up to eat later if the person doesn't want to finish the food item? A corn dot, a fried pie, a turkey leg, or a bag of bite-sized donuts? Which of those previously mentioned foods is less messy? Say for a mother feeding her young child? Why, donuts of course! You're selling convenience as well as a high quality product.
Fairs and festivals generally have lower rent compared to storefront establishments. Below you will find some trailers to sell your donuts in, they can be quite inexpensive.
For instance, a local annual pumpkin fair near my hometown charges $370 for a standard concession trailer for three days of selling. A months rent downtown could cost hundreds more and there wouldn't even be as much foot traffic! And depending on your location, fairs and festivals are plentiful. If you make your business portable, you could travel from site to site nearly all year long! Want to take a break and you feel financially secure enough to do so? Go ahead! There will be more opportunities down the road.
Here's a very important tip for anyone looking to sell fair and festival concessions--do what you can to get your foot in the door with your business. I was surprised to find that the older ones only let in a certain number of food vendors and that they typically give preferential treatment to those that have been coming the longest. Sometimes there's a waiting list just to set up shop. But, this is another advantage of selling donuts--it's original. I was informed by more than one concession planning committee that if I had something different I would get more consideration. You could also target newer fairs that haven't been in existence for very long and therefore don't have an established clientèle.