DESERT DONUTS IN THE NEWS
Meet Michael Gallegos of Desert Donuts
January 15, 2026
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For Origin story:
When I bought a donut shop, I wasn’t chasing pastries—I was chasing a purpose. My goal? To give my 11-year-old daughter a hands-on “business simulator” where she could learn the fundamentals of entrepreneurship, leadership, and life itself.
What started as a simple teaching project quickly became a shared passion. Together, my daughter Gracee and I rolled up our sleeves and transformed Desert Donuts from the inside out. We reimagined the brand, revamped the menu, gave the shop a fresh new vibe, rebuilt the website and social media presence, and even co-authored a book about our journey—a tale of donuts, determination, and the magic of self-discovery.
But we didn’t stop there. We wrote original shop theme songs. We created the Desert Donuts line dance. We launched a plush donut line and collectible keychains. We built a repeatable nonprofit fundraising program. We even opened the door for others to share in the magic by launching a franchise opportunity.
And behind it all, we discovered our true calling—our “WHY.”
We’re Not Just in the Donut Business—We’re in the Make People Happy Business
We believe joy is just as important an ingredient as flour or sugar. Here’s how we spread it:
1 – Customers
Every shop features a giant “Share Your Happy” wall mural where guests can grab an erasable marker and leave their own uplifting messages—right alongside our mascots, Dottie and Chip (who just happen to represent Gracee and me). This interactive tradition, our fresh-made-to-order cake donuts, and our warm, personal customer service all make stepping into Desert Donuts an instant mood-lift.
2 – Staff
We believe happy employees make happy customers. Our team works in a supportive, respectful environment with clear systems, training, and leadership that truly values their contributions. We want our people to love coming to work.
3 – Community
We say “yes” as often as we can—supporting schools, churches, local businesses, first responders, and youth sports teams. Our fundraising programs help community groups thrive, and our team volunteers time to causes that matter locally.
4 – Charities
We’re proud to support organizations like the Valley of the Sun Scholarship Organization, Parkinson’s Foundation, Trevor’s Vision Feed the Homeless, Village of The Valley, and SARRC—because the joy of giving is the sweetest reward of all.
5 – Franchisees
For those who join the Desert Donuts family, we provide robust training, proven systems, and ongoing support so they can succeed and share the happiness in their own communities.
Our mission is simple but powerful: change the world, one dessert at a time.
Because when you fill a community with smiles, laughter, and a few really great donuts—everything gets just a little bit sweeter.
Can you talk to us a bit about the challenges and lessons you’ve learned along the way. Looking back would you say it’s been easy or smooth in retrospect?
Not smooth at all—but incredibly rewarding. Growing a business with my daughter has been one of the most fun and fulfilling experiences of my life. I’ve owned many businesses in Arizona and had a lot of different partners, but having Gracee as my partner tops them all. It strengthened our bond, built up her character, and has given us this unique space to laugh, create, and dream together—whether it’s making donuts and ice cream, running the day-to-day operations, or coming up with new, fun shop activities.
Of course, there have been challenges. We’ve dealt with the usual business hurdles like employee turnover—though we’ve finally dialed in a solid team. We had to create every system needed to transition into franchising, which is no small feat. And then there’s the creative side, like writing and launching a children’s picture book—amazing, but also a huge undertaking. Every challenge has made the wins that much sweeter.
Thanks for sharing that. So, maybe next you can tell us a bit more about your business?
Desert Donuts is a cooked-to-order donut shop—and that one detail changes everything. We only have one true competitor in the U.S., and we believe our product and systems are far superior. Our donuts look better, taste better, and we offer more creative choices than anyone else.
But we’re more than a donut shop—we’re a full-on dessert destination. Our menu stretches into donut sundaes, donut ice cream pies, donut floats, cereal shakes, coffee shakes, full donut meals, and an entire lineup of specialty coffee drinks. The biggest game-changer? We cook your donut when you order it. No cold donuts sitting in a case—every single one is made fresh, just for you.
Our vision is to make Desert Donuts a household name, right alongside Dunkin’. We plan to open shops in every state. Right now, we have one location in Arizona, and our area developer franchisee in Colorado launched the first 2 of 25 planned stores in late 2024.
What we’re most proud of is the brand we’ve built—a fun, welcoming place where families can laugh together, enjoy incredible desserts, and share a coffee or two. That’s the real sweet spot.
What do you like best about our city? What do you like least?
We’re Arizona natives, so we love the diversity and energy of the people here in Phoenix—it’s such a vibrant mix of cultures and stories. The only drawback is that our current shop is a little too far north. That’s why part of our growth plan is to open more locations further south, in major hubs like Scottsdale, Tempe, and Mesa, so even more people can get their fresh, made-to-order donut fix.
Pricing:
- Our cooked to order donuts start at only $1.95
- Our dozen donuts start at only $19.95
- Our coffee pricing is also competive with a very high quality coffee bean.
- Instagram: @desertdonutsphoenix
- Facebook: @desertdonutscarefree
- Youtube: @desertdonuts