Nanango donut business suffers as ex-owners launch competing trailer at local markets

A Nanango businessman has been left confused and disappointed after buying a donut shop only to find months later the past owners were starting up a competing operation.

Timothy Walsh (far left) bought the Hot Cinnamon Donuts from Lynn and Allan Feltham in 2024. Photo credit: Timothy Walsh

A new business owner has been left in shock after finding out the sellers of a donut business sold to him only to start up a competing business, just months after handing over the fryers.

Timothy Walsh of Nanango runs a workplace program that employs people with disabilities through the NDIS.

When he found out about a donut trailer and business for sale he thought it would be a great opportunity to provide his clients with additional work.

“We contacted the person (who was selling the business), and they told us they had been selling donuts up at Nanango markets for quite some time. I think since 2018,” Mr Walsh said.

“They’ve sort of built up quite a good customer base. They were the only people that sold donuts at the markets.”

Lynn and Allan Feltham, the couple who ran the Hot Cinnamon Donuts trailer, were selling the business for $40,000, a price Mr Walsh readily agreed to pay.

They spent several months training him and a few of his staff members on how to make donuts in the trailer and handle the customers.

“We kind of work shadowed them for a couple of months. They trained us up,” he said.

The couple’s last official month of trading at the Nanango markets was in July 2024 but Mr Walsh was shocked when he found out they had returned to the market with a new donut trailer early this year.

“I had heard the previous month, in February, that a donut trailer was operating there and people would say ‘you’ve got a bit of competition’ and I’m like that’s fine,” he said.

“I wasn’t really concerned but when I learnt who it was, that’s when I’m like, that’s just not right.”

Timothy Walsh (far left) with Alex and Crystal, working the donut van. Photo credit: Timothy Walsh

He said he saw the pair operating the new trailer at the March markets.

Mr Walsh said he never even considered getting a lawyer to write up a contract with a non-compete clause because he believed the couple were retiring.

“We kept the name. We didn’t do any non-compete clause … We didn’t even go down that road because they said they were retiring.”

Mr Walsh said his business had suffered significantly since the new trailer turned up early this year.

“It was a banger business. These guys were turning over around $2,000 per market day. So, it was a really nice little business.

“And pretty much since they’ve turned up, earnings have fallen 40 to 50 per cent.”

He said his frustrations were not about the additional competition, but that the former owners set up a new truck offering the same product, after selling the last one.

Mr Walsh said when the couple were contacted by his lawyer, they told them the new trailer belonged to their son.

According to Mr Walsh, because there was no non-compete clause the market organisers are not able to get involved, which means the Felthams are free to operate their new donut trailer at the monthly Nanango markets.

The markets run on the first Saturday of every month at the Nanango showgrounds.

Lynn and Allan Feltham were contacted for comment, but did not respond.

Originally published as Nanango donut business suffers as ex-owners launch competing trailer at local markets