The Evolving Business of Doughnuts

Рет қаралды 313,163

Күн бұрын

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Donuts are a multi-billion dollar industry fueled by insatiable demand. The United States is the battleground between chains and mom-and-pops. It’s on the West Coast where the market has gone through the greatest evolution - donuts here are a canvas for gourmet ingredients, unorthodox flavors, and elegant decorations. In this Modern MBA exclusive, we’ll break down the business of donuts from the lens of the biggest chains in the world in Dunkin’ and Krispy Kreme. We'll then dive behind-the-scenes of 2 West Coast shops looking to disrupt this status quo.
Mikiko Mochi Donuts is one of the hottest donut shops and a pioneer of mochi donuts in the state of Oregon. Owner Alex McGillivray is a progressive owner who is as much a donut connoisseur as he is a shrewd restauranteur. In 4 years, Mikiko has gone from an idea to the leading shop in Portland with a second store underway in Beaverton. / mikikomochidonuts
As the doughnut capital of the USA, Los Angeles is where the opportunity is the greatest. In LA, desserts like cupcakes and donuts have been elevated into upscale indulgences. Owner Peter Womack has just opened Lola's Doughnuts - selling artisan yeast donuts with organic gourmet ingredients and elaborate toppings. Peter makes everything from scratch by hand, every morning at 3AM. He uses the recipes he’s honed over the years at various shops around the country.
/ lolasdoughnuts
Even in the world of donuts, product is not everything, passion is no indication of success, hard work is not a moat, and being good at your craft and being good at business are two different things.
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@ModernMBA Ай бұрын

Visit NetSuite.com/ModernMBA to sign up for their one-of-a-kind flexible financing offer Get 20% off DeleteMe US consumer plans: joindeleteme.com/ModernMBA Use promo code MODERNMBA 0:00 Make Today Special 0:41 Sponsor Break (NetSuite) 2:26 America Runs on Dunkin' 8:12 Japanese-American Fusion 19:44 Handmade Artisan Luxury 30:47 Sponsor Break (DeleteMe)

@WhatWillYouFind 29 күн бұрын

Mikiko has the old pre-tech boom no nonsense business plan. Make a great product, stay lean, but also pay workers well to invite a sustainable business. We need this all across the world.

@Bipolar.Baddie 28 күн бұрын

How are we going to enrich hedge funds and faceless shareholders with that business model? What's next; not letting banks gamble with people's life savings?

@dlb8685 26 күн бұрын

I hear you. But I can’t help but think what happens 10 years from now? Those kinds of margins are like chum in the water for other entrants. It seems like a great business and great guy and I wish him luck, but what he’s got is very hard to sustain for years or decades.

@smileyeagle1021 26 күн бұрын

@@dlb8685 I can't help but thinking that a lot of the other entrants are going to shoot themselves in the dick by focusing just on what margins they can get rather than how they can provide the best product and service. They'll mostly be a flash in the bucket, while the places like Mikiko that focus on quality product and service first will stick around.

@Fister-kw5un 25 күн бұрын

Slow down, cowboy. How many Cambodian donut stores were closed by Mikito? I like my donut store serving me to be immigrants, not locals, cause it’s how it was when I was a kid.

@michaelmao1988 25 күн бұрын

lol I love how a donut shop is compared to "old pre-tech boom"

@gabys2 Ай бұрын

I have had many delusional ideas in my life, but thankfully selling luxury donuts with 12K+ monthly overhead in a space with no furniture has not been one of them. Sad thing is I bet Peter makes some killer doughnuts.

@chikkin.salad.sandwich Ай бұрын

How much you wanna bet he's got rich parents footing the bill for this nonsense

@benverboonen1108 29 күн бұрын

It's because you're not the target audience lol

@GlamGoddes101 29 күн бұрын

The donuts looks good, he only has the the basic donuts in the display case though

@jadenpark7943 29 күн бұрын

hopefully now that modern MBA did fantastic commercial for lolas doughnuts, maybe more people viewers in LA will go n buy to see if taste good as they look

@Soosss 29 күн бұрын

@@benverboonen1108 he moved out from the mall, seems the target audience didnt care much

@MentalHelp. Ай бұрын

Not putting in chairs so customers don't lounge all day is WILD when you're NOT getting customers

@khueleminh5262 29 күн бұрын

Like fr

@willashley23 26 күн бұрын

Yeah, that part really threw me for a loop. He should be desperate for customers, especially ones that will stick around and maybe place more than one order. I wonder if he's dogwhistling about homeless people her - it is LA after all. That's the only kind of guest you would not want lingering around.

@eetadakimasu 25 күн бұрын

There's also things he can do to keep people moving, like put in more bar seating, but the parents and nannys won't bring kids in to eat gourmet doughnuts if they can't sit and take a load off!

@AltimaNEO 19 күн бұрын

Homeboy might be a artisan donut baker, but he comes off as a terrible business man. Setting up in a mall? Farmers markets? Come on man! Gotta cater to kids and soccer moms. Pump out dozens of donuts that people take to kids sports games on weekends, teachers bring em to school for kids, etc. Hes missing out on a lot of sales by trying to sell individual frufru donuts at ridiculous prices.

@eetadakimasu 19 күн бұрын

@@AltimaNEO exactly! You can go elite, high-end on a store after you're successful

@sweetpeach3 Ай бұрын

As soon as I saw he decided to rent in a mall, I knew it was doomed. $12,000 a month rent for an old frozen yogurt shop where he can’t even cook in his own shop?? That’s a terrible idea.

@TheRedfuss Ай бұрын

Found out online he made the same realisation and has left the mall to reopen somewhere else

@spicy_xinger Ай бұрын

Ya it’s crazy how everything has to be made offsite and transported by car. Doesn’t seem like any location is worth that extra step

@NuncNuncNuncNunc Ай бұрын

@@TheRedfuss Not sure he's still in business. The facebook address is a shared kitchen. Website points all over the place and fake phone number.

@azncindyvu 29 күн бұрын

I live close to this mall. There’s also a mochi donut shop in the same mall

@Ph34rNoB33r 28 күн бұрын

No idea how well malls work there, here they are initially hyped, mostly for the investors. They lose renters, adjust rent, get new ones who still cannot make profit, now like 1/3 to 2/3 of the stores in many malls are empty, with some printed front looking like an actual store (it's still just an image, so it looks weird as it cannot change perspective). Mostly chains like MakuDo survive. But the initial investors got their money and sold their share to others. I wouldn't want one of their contracts, with specified core opening hours, or if you are a bakery they might require you to have 80% of products still available an hour before you close, leading to so much waste.

@joedirt1965 Ай бұрын

Lola does not want people lingering in the shop all day but people will not go into a shop that's empty.

@commonomics Ай бұрын

It’s crazy because people in a mall have been shopping all day and want to sit down and enjoy a treat. People lingering would literally incentivize others to come in.

@wiley-harris-anderson 29 күн бұрын

Yeah, isn't it kind of the point to have people linger around and buy more the longer they're there?

@nicholasgutierrez9940 29 күн бұрын

He's an excellent donut maker, not a business man

@nezhokojo1641 29 күн бұрын

He needs WiFi that is free for customers to use. Have customers lounge with their laptops, buying coffee and/or donuts throughout the day. Make it a lounge and/or place to chat. People will come in and purchase as they see it is busy. He needs advertising through social media like Instagram and TikTok. What about delivery too? It seems this is just a passion project than a business project for him. The name Lola's Doughnuts feels like it is catered to either a higher class or old ladies. Guy needs rebranding too....Also it seems that mall is dead. lol

@charlesw7397 29 күн бұрын

If he was so set on being in a mall, he shouldve leased one of those cut outs that Cinnabon and Jamba Juice are usually in. People would see the menu easily while just walking by and he could chat with people as they pass/hand out samples. Forcing customers to come into an empty shop that appears to be unfinished is a big ask. Asking them for $6 after that is an even bigger ask lol

@GhostwarGWPTC Ай бұрын

wasnt expecting it to get so dark, but i liked that you showed its not all sunshine and rainbows

@GyroCannon 28 күн бұрын

It's such a sharp jump from Mikiko too. "This business is well planned, well run, and sells good products while paying workers a good wage. Things don't have to be soulless and corporate - You can have profits AND sunshine and rainbows!" "... but not here in LA, at a mall, with no sales."

@KOSMOinfinite 29 күн бұрын

Lola Donuts should just rent kitchen space in a central location and distribute out to coffee shops in high-end areas. To me, seems like a no brainer. Cofee shops don't want to go into the trenches with this type of baked goods and if this guy is literally making the same flavours daily then you don't run the risk of going stale as you can rorate flavours around to various cafes. You still get all the social media buzz and it leaves you exposed to less risk. Also, you can do catering and corporate stuff all from the same kitchen. He should have stayed an "online" brand but pivoted slightly into partnerships and catering.

@jvlicious 29 күн бұрын

Wow, good and succinct advice 👍

@MIKAEL212345 29 күн бұрын

wow, that's a good idea.

@buyelanim 29 күн бұрын

I absolutely agree. He should have leaned into a 'made-to-order' model and added customer value adds & systems around that specifically. Not merely copying/pursuing the moves of the shops he is seeing in the market. Hopefully he gets to read your comment and adopts your lower risk and higher margin & volume strategy! Also instead of coffees, sandwiches and all that, he could use his skill and innovation explore offering products within the dessert & cakes category (a niche can sell itself better).

@maiastela 28 күн бұрын

Indeed! I was thinking the same (selling to high-end coffee shops) but as his story unfolded, he makes evident he wants a store/brand of his own - even without chairs lol. Passion is not everything I’m afraid

@GyroCannon 28 күн бұрын

@@maiastela He can still be a brand - the high end shops might put a sign on the display for the donuts. Assuming that this idea goes well, that'll generate some mental real estate for his brand that he can leverage to drive traffic to his own location in the future... But he jumped the gun and went for an overpriced, over-sized spot in a mall...

@commonomics Ай бұрын

Lola’s website literally still has the demo squarespace pages for the location page, shop page and contact page. He doesn’t seem cut out for business. He really might benefit from an advisor or a class.

@captainjacobkeyes6733 28 күн бұрын

yeah wow I took a look and it's the default squarespace page - bleak.

@gaarasoren1234 28 күн бұрын

His menu on the website hasn't even been worked on! It's in hkd and there's stuff like ramen on it omggggg

@baxoutthebox5682 27 күн бұрын

The realtor, then “entrepreneur” career path is a red flag to me. Those people generally tread water doing anything they can to avoid working for “someone else”.

@Banom7a 23 күн бұрын

he should watch this video lmao

@sneps-ix2th 20 күн бұрын

i get that he was working 14 hour days but he should’ve sorted that out before renting a 12k space or while he’s waiting from 10-1 for a customer to show up

@baxoutthebox5682 28 күн бұрын

Pretty blown away by the Mikiko guy’s understanding of every aspect of his business. It’s extraordinary that he prints those margins at such modest scale. I see that being a very successful pitch to franchisee’s should he ever go that route.

@methos-ey9nf 26 күн бұрын

Seriously.

@WilliamWatrous 25 күн бұрын

He's just going to get copycats vs franchises when the equipment is so lean

@speakingquitefrankly 17 күн бұрын

Everything but gloves sadly

@codingiswhyicryatnight Ай бұрын

No shade to Peter but that donut shop looks like a Saw location.

@blondy2061h 25 күн бұрын

I’ve never seen such a clinical looking donut shop. The oncology hospital I work at is far warmer.

@MrJakson112 Ай бұрын

so cool you actually went out and did an interview for this!

@elizamartin4263 29 күн бұрын

I loved this style of video!

@vermiform 28 күн бұрын

Yeah this was a step above.

@GyroCannon 28 күн бұрын

I'm loving the new style of Modern MBA that covers businesses and people IRL, rather than speak solely about financial statements It's one thing to speak about how they operate but another to see it happening

@anastasializzi1755 Ай бұрын

The mochi donut guy seems really cool, I'd visit if it were in my state!

@GeeEm1313 Ай бұрын

The doughnuts themselves aren't very good, IMO.

@kys7615 Ай бұрын

@@GeeEm1313 have u tried them?

@alanc4091 29 күн бұрын

Anytime an owner proudly states how much they pay their employees, they have my respect and those donuts look pretty damn good too. I'm assuming healthier too since it's not deep fried.

@obscene3248 29 күн бұрын

@@alanc4091 Image a slightly gummy, doughy thing. Mochi-nut really isn't doughnut and you just can't replace deep fried stuff with baked stuff.

@sodapone 29 күн бұрын

Next time I go to Portland I'm checking them out.

@Jinchuricki27 29 күн бұрын

Lola needs to take another look at his product. If they weren't coming back at a farmers market, they aren't going to come back at a mall. The recipe needs to be examined.

@kingbonezai4925 26 күн бұрын

This

@AltimaNEO 19 күн бұрын

I think his donuts are probably fine. They certainly look good. I just think hes going about it all wrong. Trying to cater to an upscale crowd at locations where it doesnt make much sense. Just a good, cheap donut sold in volume would do him wonders in a neighborhood type donut shop. Somewhere near a school.

@s4098429 16 күн бұрын

They might be too big or too rich. When I eat donuts they’re a simple side to a good cup of coffee.

@AltimaNEO 16 күн бұрын

@@s4098429 They look average sized. They're probably not that rich, though. I think its just that hes making them by hand, along with the toppings, and making the price reflect the amount of work that goes into them. Basically, hes not providing good value. But you are right, people want something simple from a donut. Anything fancier, and you're in cupcake/cake territory where the higher prices can be justified because people expect it.

@visionbond5814 29 күн бұрын

Moral of the story: Do what Mikiko does, not what Lola does.

@methos-ey9nf 26 күн бұрын

Seriously Mikiko’s inspires me to travel across country and go like Keaton in the founder “FRANCHISE”!

@AltimaNEO 19 күн бұрын

@@methos-ey9nf Ill go there this weekend and buy a few.

@davidfrischknecht8261 22 сағат бұрын

Except Mikiko doesn't make real doughnuts. Real doughnuts are fried.

@methos-ey9nf 22 сағат бұрын

@@davidfrischknecht8261 missing the forest for the trees my friend.

@lefton4ya Ай бұрын

Man this and the Chicago club promoters videos are seriously MBA capstone course level of research with interviews and inside financial info; you have leveled up. I just hope the algorithm helps you as sadly the big name brands seem to get more eyeballs even though those are not nearly as well researched as ones with interviews and inside financial information.

@abdifatahmohamed2613 Ай бұрын

I think the algo will punish his videos…the club promoters video did not do well..his audience is used to the big name brands …best advice would have to start a new channel specifically for this

@spicy_xinger Ай бұрын

Ya they’ve really upped their game and are getting deeper into the topics they cover

@seren1tynow 29 күн бұрын

⁠⁠⁠@@abdifatahmohamed2613Interesting… The algo never recommended me the chicago club video.

@MIKAEL212345 29 күн бұрын

@@abdifatahmohamed2613 with the club video, I wonder if the semi-sexual nature of it hindered it in the algorithm. It would really suck if all the interview content did bad cause this has been BY FAR my favorite videos from Modern MBA that he has ever made.

@katiesamcharbonneau4360 27 күн бұрын

I just discovered the account from this video! That’s a good sign :)

@DJ_Frankfurter Ай бұрын

The Lola Doughnuts guy's story is depressing. He's so detached from reality.

@inquisitorinluzifera3406 Ай бұрын

probably spend too much time in LA without a reality check.

@togaman6438 Ай бұрын

Bro it really caught me off guard how dark it got

@sweetpeach3 Ай бұрын

I agree 100%. He needs to move to a standalone place. People want a cafe to sit in or walk by. Mall is a terrible idea.

@samuelgates5935 Ай бұрын

He should stand outside and give free samples. Go to schools and colleges to get catering offers. Worked with a couple who did this and after 1 week they were selling out.

@anthonyguzman412 Ай бұрын

Ya I’d go and want to get a donut because that mall looked like the Del Amo fashion center but he rather have someone who would buy 3 dozen donuts instead of my 2 donut purchase so I’ll just go get a box for $8 at my local granny’s donuts

@uliokechukwu663 27 күн бұрын

Funny thing is Lola's exact concept is thriving in Covent Garden in Central London, its called Donutelier and is super successful. The same gourmet £6 doughnuts, but the business is different. The space is extremely beautiful, you see the doughnuts made fresh and theres often a queue to get them at peak hours. He needs to get out the mall, and get to a location that is cheaper and aligns with overpriced baked goods

@MayorSom 14 күн бұрын

I live walking distance to Covent Garden. It's not exactly some noughties shopping centre though.

@onlinefriend3889 4 күн бұрын

@@MayorSomJeez, you’re lucky. Your rent must be astronomical

@hillfortherstudios2757 16 күн бұрын

"Being good at your craft and being good at business are 2 different things". This is critical to understand. Even the business school that I went to leads you to believe that if you simply have a good product, you will have business. It's simply not true.

@NASCAR24FAN100 29 күн бұрын

It's sad seeing Peter do everything wrong. His prices are too high, the store feels uninviting (which is intentional), the location is bad in many ways. We have to get a follow up later this year.

@bryantgomez7135 27 күн бұрын

He just closed his store and went back to making pre-ordered donuts for third-party delivery.

@GuillermoMunozOrtiz Ай бұрын

I would love to watch more videos where you talk to different independent businesses in different states. ❤

@ModernMBA Ай бұрын

Thank you very much for your support!

@GuillermoMunozOrtiz Ай бұрын

@ModernMBA No problem, this was your best video so far. Consider making these videos into a series.

@msrochellemartin 29 күн бұрын

Agreed! Loved this format.

@MIKAEL212345 29 күн бұрын

@@GuillermoMunozOrtiz you should his video about Chicago nightclubs then. It is basically about the promoter business, which by its very nature has to a small independent business. I am loving ModernMBA's new interview direction with his last two videos.

@errolneal9789 Ай бұрын

I admire Peter's tenacity. I wish him the best and hope that he succeeds!

@markangelogarcia2584 29 күн бұрын

Future endeavors but not this one😂

@formxshape 27 күн бұрын

Peter can learn a lot, simply by watching this video 😂

@unifairsum21 Ай бұрын

Man lolas opening at 10am is rough people are already at work hard to get anything after

@eminempreg 28 күн бұрын

Yeah! Donuts are usually a breakfast food. I work at a popular Cafe in my town and on average were sold out of our pastries by 10 to 11am. I'm not business minded but Peter's choices keep confusing me

@AltimaNEO 19 күн бұрын

The whole setup stinks. In a mall? Like what is he expecting? That kinda getup works for a lean, heat and eat model, where you just take premade, frozen product and heat what you plan to sell (exactly how Starbucks does it, for example). Theres not enough foot traffic at a mall to make the kind of sales one needs from a fancy, handmade, premium donut shop. If he was serious about selling that many donuts, he should have set up shop somewhere in the neighborhood near schools or offices. Open up at 5 AM as the crowds are getting to work and school. Donuts are the kind of thing that sell themselves, as long as youre in the right location.

@thequintanashow5058 Ай бұрын

If Lola’s doughnuts could talk, they would sound exactly like the owner … 😂

@untrusted8008 29 күн бұрын

He's really sleep deprived working 14-18 hour days and waking up at 3am. Seems depressed too. Probably can't think clearly, which is extra dangerous when spending 12k a month (possibly with debt)

@juliancohen9561 29 күн бұрын

@@untrusted8008 I thought the exact same thing. Poor guy. I can't imagine the stress he must be in.

@frankd9945 28 күн бұрын

"I want big orders like an office or school. " ... Who wants to pay for overpriced premium donuts for coworkers or other people's kids?

@baxoutthebox5682 27 күн бұрын

@@frankd9945who doesn’t want to sell high volume orders to few customers rather than low volume orders to many customers. That statement was so obvious it doesn’t need to be said. If he had an idea of how to execute on that plan, sure. But just wishing you could sell everything to one customer is moronic. Like a car dealership saying I wish we could sell the whole lot to just one guy.

@AHulst Ай бұрын

This video explained why Krispy Kreme donuts are so terrible. I never understood why my American friend thought they were amazing, yet I thought they tasted stale and overwhelmingly sweet. He probably just started eating them when the donuts were made locally, but when I eventually tried them they were made in a factory

@ronh4658 29 күн бұрын

Yeah, a Krispy Kreme hot off the conveyer is amazing. The most unhealthy thing you can eat, just BARELY solidified. Every ten seconds after the first minute, it gets worse-after an hour it may as well be a vending machine sticky bun.

@bikesarebest 29 күн бұрын

Yeah, I remember having them as a kid in like 2006 and being obsessed. Had one a few years back and it feels like empty calories.

@glitterstarbeau 27 күн бұрын

They are so good hot off the machine. I won't eat them unless they are fresh (can you even get them that way anymore?)

@Nighthorde26 27 күн бұрын

If you want a solid American donut, I highly recommend Duck Donuts!

@dlb8685 26 күн бұрын

When I was a high school kid in the late 90s as they were taking off, they were popular for a reason. But like others have said they get nasty fast and the logistics got way overstretched. I’m not much of a donut eater anymore anyway, but can vouch that Krispy Kreme was pretty good back then.

@PXAbstraction Ай бұрын

Anyone who has ever had Tim Horton's in Canada since they were bought out by private equity can tell you that the hub and spoke model absolutely compromises significantly on quality.

@GeeEm1313 Ай бұрын

Who owns Burger King as well. I wish I could have tried them before the buyout.

@PXAbstraction Ай бұрын

@@GeeEm1313 Yep and now Popeye's (which I don't think was ever good) and most heartbreaking of all, Firehouse Subs. 😭

@spicy_xinger Ай бұрын

Franchising kills quality in most cases

@Bodybypt 29 күн бұрын

Since being bought out, they don't taste as good as they used to.

@coolpasta2644 29 күн бұрын

it's so inconsistent😭😭. i don't think i've ever gotten a steeped tea that tastes the same. no matter which store i go to

@totleariss 28 күн бұрын

Imagine struggling to sell your premium made from scratch product at a farmers market and thinking your problem is not enough foot traffic.

@theboringchannel2027 Ай бұрын

When there were no repeat customers after 6 months, that indicates there is something wrong with the product, or the perceived value vs the cost. Basically his donuts likely don't taste like a $6 donut should. Look good, but taste below average.

@KOSMOinfinite 28 күн бұрын

It could be that is is actually a $4 donut and that would bring people back. It's crazy how precise pricing has to be. I do think people have a barrier for anything simple that costs more than $5 (Cofee, cookie, donut, drink).

@theboringchannel2027 28 күн бұрын

@@KOSMOinfinite Yes price points matter. Although in NYC there are plenty of $6-10 donuts for sale, and more expensive cronuts. Its a combo of price and likely poor quality product due to a lack of repeat customers. Guy likely sells donuts well past their prime due to his off location cooking of the donuts. Stale $6 donuts dont get you repeat customers.

@ScarredBert Ай бұрын

Lola’s shop guy, if you’re reading this: no one is gonna be attracted to your empty box of a store. It’s bad vibes. Donuts are a dime a dozen, if I’m gonna go to a bare store it’ll be a southeast Asian donut store when the craft is generational and cheap. People don’t go to malls for cheap shit, it’s gotta be good vibes

@pierrex3226 Ай бұрын

He's selling overpriced depression. Who's not loving this?

@commonomics Ай бұрын

And no one even knows they are handmade artisan doughnut, I didn’t see it advertised outside the shop or inside.

@DovidM 28 күн бұрын

Some Southeast Asian donut shops in SoCal have chairs and small tables. A problem such stores have are customers who sit down and don’t order anything, because they just want a place to sit.

@cookiesandpudding8485 26 күн бұрын

@@DovidMwouldn’t having people visibly in the store make more people want to walk in overall?

@dieselbaby 22 күн бұрын

@@cookiesandpudding8485 depends what kind of people are sitting around in the store. Where I'm at in Southern California (in LA, about 15 mins away from where Lola's used to be) in the immediate local area there's one Dunkin location and numerous independent mom & pop style shops that are run by Cambodians, primarily, all of them more or less copycats of each other. These places 5 years ago used to have a couple of small booths/tables and chairs inside, but nowadays, in the few who haven't removed them altogether, they aren't too happy to be having people sitting around, because 99% of the time it's homeless people, the kind who are confrontational and cause trouble, no less.

@lukeholman 28 күн бұрын

never suspected that I could learn so much about life from donuts

@mari0b036 16 күн бұрын

The mochi donut dude genuinely looks so awesome to be around. Like his whole mentality of investing in people is so real and telling.

@sirmidor 29 күн бұрын

I really appreciate the footage used in this video. In past videos, apart from shots of graphs, it was almost all short TV advertisements or other stock footage. It related to the topic, but it was also very generic, it was just filler for the narration. In this video the footage is specific and directly relates to the content. I also liked how you focused on two specific shops to explain the larger struggles of this industry, I found it very engaging.

@Spongy656 Ай бұрын

It'd be really interesting to have a check up on these guys in the future. I hope Lola's finds its footing.

@blondy2061h 25 күн бұрын

I’ll be amazed if i he sees August

@JK8 Ай бұрын

Peter seems kind of screwed

@extragon5552 29 күн бұрын

Been watching your channel for a year now and have been super impressed with the consistent high quality and well-researched videos! Really appreciate that there's not a lot of clickbait and nothing is overdramatized, unlike most of youtube. Your videos are refreshing, unique, and wish there were more channels like this!

@ModernMBA 29 күн бұрын

Thank you for the support!

@Spicy_chef 28 күн бұрын

As a chef, I see Lola’s problem far too often. Creators are like parents… they will love their baby more than everyone else. When you have someone looking at the product so closely it’s hard to have the outside perspective on who will care about what you are creating! From my experience, finding a solid business partner who is pragmatic but invested in where you want to go is the most important relationship you can develop.

@alanmiller5018 Ай бұрын

Lola’s Doughnut is literally at the closest mall I live by. Might go to see if he is actually like this.

@CamF64 29 күн бұрын

Update and let us know if it’s any good

@drfunk891 29 күн бұрын

I'd love to hear a follow up on this!

@eevieee 29 күн бұрын

Commenting so I get updates tol 😅

@homurseempsone154 29 күн бұрын

Update us

@wandamishmash 29 күн бұрын

Can you also ask what he thinks about this vid, or whether he knows how he’s portrayed here at all?

@inquisitorinluzifera3406 Ай бұрын

29:15- always sheds a good light on your business, if you complain about low customer numbers on your official social media :D

@mcdoji Ай бұрын

What a stupid thing to post on social media, especially when selling doughnuts for $5 a pop. This guy has no chance and should cut his losses sooner rather than later.

@ZackScriven 29 күн бұрын

Oh wow. 🫣

@blueguy5588 26 күн бұрын

The Mikiko guy seems like a solid business owner and employer. Hope his business continues to succeed.

@piercechan Ай бұрын

Bravo! This was my favorite episode yet! Would you consider doing an episode on bubble tea "boba" shops? I think you will find a new viewer base with that. I own multiple boba shops around LA and would be happy to contribute.

@ModernMBA Ай бұрын

Send us an email - happy to consider!

@spicy_xinger Ай бұрын

Wall Street millennial did a video on this but I’d love to see some real life stories from smaller owners and not just the mega franchises

@piercechan Ай бұрын

@@spicy_xinger sweet, I will look that video up, thank you.

@methos-ey9nf 26 күн бұрын

@@spicy_xingerdefinitely some viewer overlap because I watched that video too.

@Boredblacksheep Ай бұрын

I love your transition from biggest companies to small businesses. Great research, thanks!

@suziscool 28 күн бұрын

My pops started a business 50 years ago renting roller skates. He'd come home with $0.00 days but showed up the next day, every day. He followed the market and brought on skateboards, snow boards and all that goes along with it. It was a successful business for over 30 years. Then came the Internet and he retired. Lessons learned, show up everyday, follow your market and show up everyday.

@jvlicious 29 күн бұрын

Sometimes a craftsman needs a business coach/mentorship. I once knew a girl who began studying jewelry making, creating fantastic stuff like cuffs and such. Couldn't part with what she created because she felt the offers for her items were too low

@jmmbuthia 28 күн бұрын

Love that Modern MBA is covering small businesses also not just big business. We learn a lot from seeing how small business operate in competitive environments

@caymanchristopher7014 27 күн бұрын

As part of practical experience, our business school assigned us businesses to help them optimize. We got a donut shop. We analyzed sales, optimized the donut sale mix with statistics and optimized labor timing. Then we asked questions like, what time do you open? They opened at 8 am! We got an A based on post-encounter increase in profitability. Mostly because we told them they had to open at 6:30 am. LOL!

@Uglier. Ай бұрын

Average American eats 31 donuts every year? I had 10 last week for teachers appreciation week 😂😂

@OperaVanDubels 29 күн бұрын

You're the one who increases the average

@polygonalfortress 13 күн бұрын

lmao

@mohammedjeffali1076 11 күн бұрын

I lower the average, I have about 10 a year....from different places. Gone are the days of a dozen glazed, or eating multiple doughnuts at once. The mochi doughnut shop we go to is 3$ for 1 doughnut! We drive out to a small country town and get get the best cinnamon roll ever for much less. I'll eat one here and there.

@adamryason5509 29 күн бұрын

I really like the transparency in this video. As an entrepreneur who's dealt with ups and downs, I can relate to the struggles and it's a relief to see the reality of many, instead of only the successes of few.

@JackZ72 Ай бұрын

Portland vs LA exemplified so well

@taylor3342 29 күн бұрын

I don’t think one guys bad business venture encapsulates a city but ok

@JackZ72 29 күн бұрын

@@taylor3342 I speak from a position of authority as general of portlands woke mob. What credentials do you have

@jaad9848 29 күн бұрын

@@taylor3342 Especiallly since that business is clearly unsustainable and wont exist for long

@johnjones3813 29 күн бұрын

Dumb comment.

@AriWilson 29 күн бұрын

LA rules Portland drools

@jjboybeamer Ай бұрын

Peter's business is going out of business for sure

@ohnosmoarlulcatz Ай бұрын

I think I recognize the mall as well. If it is the one I am thinking of, he's also competing against the massive Japanese market/food court with its own bakery just downstairs and around the corner. There's no way he's going to be beating that.

@hellacooook 29 күн бұрын

@@ohnosmoarlulcatzeven if the rent was $6,000 selling that amount of donuts in a month for well established brands or the other donut in the documentary is difficult . Peter if you’re reading this cut the losses before it’s bankruptcy. You don’t have a drink menu like a normal dessert shop

@cristinab2263 29 күн бұрын

Looks like Del Amo Fashion Center from some Google Maps digging. I couldn't even search the place itself, so I don't know if he's still in business. He's delusional

@chloejones6240 28 күн бұрын

There's a donut food truck at my local farmers market. It typically has a huge line because people love them. They fry them in the truck so they're super fresh when you get them. They only sell plain glazed at $4 a piece. All this to say, there can certainly be donut success at a farmers market.

@madbug1965 28 күн бұрын

Don't knock those south east Asian mom and pop donut shops. They know how to make one fine donut! 🍩❤

@Luckydaturtle Ай бұрын

Southern California has a very interesting history with Cambodian Migrants and donuts. Hulu has a documentary called Donut King, where I think it was the SVP of operations of Dunkin said that they couldn’t penetrate the west coast market because they couldn’t compete with the mom and pop shops of the area.

@GeeEm1313 Ай бұрын

Dunkin left the Portland area years ago. Rightfully so, as they're plasticky and gross.

@dieselbaby 22 күн бұрын

Indeed, the California market in general was one of the few regions of the US where Dunkin had zero presence whatsoever for several decades, they only recently (~5 or so years ago) made a re-entry into this area. I highly suspect that a lot of their decision to do this has to do with their transition in business model from being formerly more strictly focused on donut sales themselves to their current strategy as a less expensive Starbucks alternative mainly focused on beverages with a decently sized food menu. The Cambodian donut places are still around and are still sticking it out, but they are almost all the same low quality donuts, not very good tbh.

@GuillermoMunozOrtiz Ай бұрын

I think you have a new series, idead where you talk to local independent businesses in different states. This was so fascinating.

@AriWilson 29 күн бұрын

I was just at this mall today (live 15 minutes away) and had no idea this Lola Donuts place existed. I love donuts and often expense a dozen gourmet donuts for the office. Marketing fail.

@ChocolateMilkCultLeader Ай бұрын

I was not expecting that Peter diss track in the end. I wonder if that will help raise Lola's business though

@humza890 Ай бұрын

Very true, I do hope Peter takes the criticism well and use it to improve the business. The most important point for me is how empty the store looks without table and chairs. And having chairs may benefit the business by making the place look like 'high demand'. Also moving the doughnut display towards the window could help bring people in (Ik this because I've gone into places with window displays of food). Business is ruthless, and being good in your craft does not mean you're good at your business. The best route would be the mix of both, someone focused on the craft and the other on the business.

@ChocolateMilkCultLeader Ай бұрын

@@humza890 maybe investing into a location where things can be made on prem would be a good investment. His current process seems inefficient

@hundid5930 Ай бұрын

Loving this new style!

@PXAbstraction Ай бұрын

Alex, I like Alex. More business owners need to think like him.

@volundros 27 күн бұрын

As someone who grew up in LA eating "bland donuts" don't you ever disparage LA donuts again. The cambodian donuts becoming so wildly popular didn't happen on accident. LA has the best donuts in the country, bar none! Those pink boxes are legendary. Sadly I don't live there anymore. After living in many different locations in the country I've discovered that the reason Krispy Cream and Dunkin does so well is because the donut shops outside of LA suck.

@Castaway67 19 күн бұрын

The final line of "Being good at business and Bing good at your craft are two different things" hits way harder than I thought It may at the end of the video.

@anthonyhuynh6380 Ай бұрын

SideCar Donuts in California are focused on premium product and are my absolute favorite! Less sweet but more flavorsome, and closer to the side of a nice pastry shop than generic, sickly sweet, cheaper donut stores.

@DovidM 28 күн бұрын

Peter took a lease on an upper story of a strip mall. Usually, businesses on the second floor are providing services like tutoring and tax preparation. Travel agents are often located there. Such services don’t generate foot traffic. He’s probably paying less in rent for a second floor spot but he’s dependent on word of mouth rather than foot traffic.

@stanleyipkiss7133 15 күн бұрын

He's hoping the foot traffic from Starbucks next door would spill over to him.

@weston.weston Ай бұрын

This content is always so well done. Excellent, ModernMBA.

@SWinxyTheCat Ай бұрын

I really appreciate the original reporting done for this episode. It makes the channel all the more informative.

@scrooglemcdoogle Ай бұрын

This is a fascinating episode because in my area theres not a single donut shop of any kind, be it a chain or local store. So this episode is a view into a business I have no reference for.

@nonononameee5833 23 күн бұрын

And where are you from

@scrooglemcdoogle 23 күн бұрын

@@nonononameee5833 South Dakota

@dieselbaby 22 күн бұрын

Huh? Where do you live that there's not a single donut store?

@scrooglemcdoogle 22 күн бұрын

@@dieselbaby South Dakota.

@josuemiamire 20 күн бұрын

Lola donuts is a case study for sure.

@MsAnneThrope 6 күн бұрын

I’m months away from finishing my MBA as a second career, and I’ve been toying with starting my own small business instead of looking for some boring manager gig. This content is a great find! I appreciate the frank reality’s of both these shops’ stories. Great information on what to do and NOT do!

@bryantgomez7135 27 күн бұрын

26:48 Lola’s Doughnuts has once again become available for third party delivery only.

@LadyPantera57 27 күн бұрын

When I first started my business I made many of the mistakes that Peter is making. I end up spending lots of money on expensive advertising, thought I needed a large office space. 13 years later, I still over-complicate things here and there, but I've also learned to simplify and evaluate what's actually needed. With the way that he's operating things right now, he doesn't actually need a storefront, he would probably do much better with a kiosk or a food cart.

@GeeEm1313 Ай бұрын

I want to go to Mokiko. I've tried Mochinut, and I thought they sucked. So, I hope Mokiko is good. Also, if you pay $5-6 for a doughnut, you should be locked in a rubber room.

@user-ec3rm9wr1n 28 күн бұрын

😂😂😂😂😂😂😂😂

@blue8710 28 күн бұрын

We need more bosses like the donut guy, considerate human beings who are genuinely concerned about the well-being of their staff.

@Waderader 25 күн бұрын

This is your best video so far. More like this, I love the interview model and the contrasting storylines over time with real numbers from small private companies. Thanks!

@samuelgates5935 Ай бұрын

ALL Krispy Kreme's donuts taste the same, just different icing. Their moto should be, "A pound of sugar in every donut!"

@johnokumu9069 29 күн бұрын

😂😂 😂😂😂 absolutely made my day😂😂😂😂 this is just gold

@nonononameee5833 23 күн бұрын

😂😂😂😂😂😂

@jjj8317 29 күн бұрын

Mall bro makes a lot of assumptions that are quite costly. His overhead is pretty, his product is very expensive, and people judt dont care much for malls to begin with. If you want to sell a premium product you need to be situation in a high traffic location around the city center of 1) a large city, 2) a small well-developed city with a lot of young people (i,e. Collegue town).

@sahildeepsingh206 25 күн бұрын

The way you made an analysis video having both the giants and then independent stores compared is something we want regularly in all your videos. Please, please!

@ooogyman 25 күн бұрын

Having lived in LA for 20 years as an actor, I get the owner of Lola's doughnuts logic, if flawed. A lot of people in LA think "if I am good at what I do, work hard, and am seen by a lot of people, surely I will be successful." But it's not enough to be seen: you need to know your audience. Bigger audiences only gravitate toward you if they see other people excited about what you do, and that means building a relationship with people willing to pay $5-$6 each for your doughnuts. But building quality relationships is much harder than making good doughnuts and spending a ton of money on rent & advertising.

@PimpinPoptart06 Ай бұрын

Im loving the interview format!

@greeny.official 29 күн бұрын

peters insane for saying that maybe a parent will shell out $45 for a dozen of these donuts to bring for their kids class

@mohammedjeffali1076 11 күн бұрын

This is why I only buy doughnuts 1 at a time... if at all. Another traditionally cheap food, that's now very pricy.

@AdropAsugar 22 күн бұрын

I'm glad you featured Lola's donuts. We rarely get to see the struggle of starting and running a business. Learn and adjust, or fail.

@thabiso_kgabung 12 күн бұрын

I've subscribed to this channel for some time now. First time watching an episode and I'm blown away by the passion and thoughtfulness to put all this together. Telling the story of the two founders so succinctly; there are no emotions in running a business. It's a cruel realization once you dip your feet into entrepreneurship.

@ABlankMan-ni6jt Ай бұрын

I don’t know where to request next topic but I’ve always seen Ecolab products and am curious about Ecolab as the company.

@TheTrebel Ай бұрын

I honestly feel bad for Peter. We are told all our life to follow our passion but the danger of this is delusion.

@EcomCarl 29 күн бұрын

Fascinating analysis of the doughnut industry's dynamics! The shift towards gourmet and creative doughnuts on the West Coast highlights a broader trend of innovation in traditional markets, reminding us of the power of differentiation and niche marketing. 🍩

@leonwindorfer2789 29 күн бұрын

Really great to see videos about smaller entrepreneurs, and especially case studies of failed businesses, thanks for that! Valuable lessons to be learned

@anastasializzi1755 Ай бұрын

Amazing video, I literally forgot this wasn't a CNBC video when you did the interview

@Slickjitz Ай бұрын

Jeez that Lola’s location is so empty it gives me anxiety at the idea of walking in. When there’s more things in a shop- chair, tables, pictures, merchandise, whatever I feel like I’m not the center of attention. Walking into that empty place dead quiet makes me uncomfortable.

@kibaanazuka332 28 күн бұрын

I hate to say it, but it gives off money laundering or crime front vibes than a donut shop

@WoodsRules 23 күн бұрын

I really enjoyed the video. Showing the corporate side with numbers and showing two really different establishments with their own niches in a mini documentary kind of way. And it stumbled me how good the shots were in the two stores as if i was walking with them. Also founders ideas and businesses are delivered really compactly with each second of the video designed to have only essentials and used to maximum efficency. I think the quality of the video is directly related to the huge amounts of passion the team has, because this video feels more natural and educating than any yt video from big tv channels, like cnbc.

@danielmoore97 14 күн бұрын

The focus on real-life small businesses was really interesting, would love to see more of this!

@mikejanacone8328 29 күн бұрын

Peter talks about having a great product having a good product is important. Look at the McDonald’s cheeseburger. It’s not the best cheeseburger there is by any means but it’s the best cheeseburger that efficient and economically mass produced that’s how you make money and run a good business

@janedoeYT Ай бұрын

Well, now I want to eat donuts D:

@stanton7847 28 күн бұрын

Fantastic interviews. Thank you so much.

@jarrettrobinson6424 29 күн бұрын

Honestly the best business KZfaq channel, keep up the good work guys appreciate it.

@user-xq6us6bc2z 28 күн бұрын

Peter is on the arena floor fighting the fight. He going after it and will be better for it. He’ll figure this out or apply what he has learned to the next thing. 🥃 Here’s to the people of action

@poochyenarulez 29 күн бұрын

28:26 that place straight up looks like its not even open. If I walked past, I would think it was closed. Seriously, no tables or chairs????? That rent for that space is insane too. Everything about it is bad.

@CarletonTorpin 28 күн бұрын

This format of video is my new favorite, on an Modern MBA. I love the in-person reportage and documentation efforts.

@justaguy7589 15 күн бұрын

dude, you should definitely do this type of expose for boba shops in houston

@somethinlike23 29 күн бұрын

15:00 "Child labor makes the donuts around here really cheap, it's tough."

@davidanalyst671 25 күн бұрын

You caught the guy with a duck sweater like 3 times working and touching food surfaces, and then adjusting the duck sweater, or glasses, and then you cut the camera before he went right back to food. You are cutting the camera away, but you still can't hide how bad his health sanitation is.

@Patangy 20 күн бұрын

I LOVED the two interviews with the shop owners!! I know it's probably not possible with all videos (like the big franchise wars ones) but they were really insightful looks into the business on the ground.

@paulbornuat5655 15 күн бұрын

Really really good video. As every one else said, showing numbers and footage from businesses is really useful. I just wonder why Mikiko agreed to explain so much of their winning formula! That being said, it'd be so much nicer if there were fewer Dunkins and Krispy Cremes and more small businesses like Mikiko that don't try to get huge and care about their employees and, as he said, do more with less revenue. Small scale is nice too. And they're really not doing at all.