Mochi Donuts: The Delicious Marriage of Mochi and Donuts

Susheel Khamkar

Mochi donuts are the perfect fusion of two classic desserts. These delectable treats have been gaining popularity in recent years, particularly in major urban areas and are a unique combination of the chewy and sweet glutinous rice cake known as mochi, and the classic fried doughnut.  

Boasting a 44% increase in interest year over year, 18,000 online searches per month and 120 million TikTok views, mochi donuts are taking the food scene by storm.

History

Mochi donuts have an interesting history that starts with poi mochi in Hawaii. This treat, made from a combination of poi and mochi, was first made by Waianae resident Charmaine Ocasek in her parent's garage in 1992 and can still be found in its original form at a shop called Uncle Lani's.

Mochi, on the other hand, has been around for hundreds of years in Japan and was brought to Hawaii by plantation workers in the 1800s. In 2016, Liliha Bakery was inspired by poi mochi and a trip to Japan, to create the poi mochi doughnut in the iconic 8-ball ring style. These sweet treats became an instant hit, selling thousands daily and eventually spreading to other locations and even to the continental US.

Liliha's doughnut shape was inspired by Mister Donut, a popular doughnut chain in Japan which was founded in the United States in 1956 by Harry Winouker, the brother-in-law of Dunkin' Donuts's founder. Dunkin' eventually acquired all of Mister Donut's shops in the US in 1990, and converted them into Dunkin' Donuts restaurants. Though the name is still found globally, Mister Donut is known for a special style of doughnut called "Pon de Ring."

Mochi donuts are made by mixing sweet rice flour (mochiko), sugar, cornstarch, baking powder, and a bit of salt together to make the dough. And then it will be deep fried. The result is a light and fluffy donut with a chewy texture and a slightly sweet flavor. They are often served plain, but some shops and bakeries add fun flavors like matcha, chocolate, and even ube (purple yam).

Gluten Friendly & Less Calories

Regular doughnuts are made with wheat flour, have a soft and fluffy texture and are commonly deep-fried. Mochi doughnuts, made with glutinous rice, can be deep-fried or baked and have about half the calories of regular doughnuts and are gluten-free. As shown above, Mochinut's Donut contains almost 4x less calories than the Dunkin Glazed Donut.

Mochi-Donut Chain Growth

Despite the low projected growth for traditional donut chains at a rate of 2.3% for the year 2023, it is expected that select mochi donut chains will experience a significant surge in growth, with an estimated increase of 40%. This can be attributed, in part, to the novelty of this food concept, as well as the relatively low initial investment required for establishing a franchise, such as a low number of initial stores and minimal startup costs of approximately $25,000 and $1,000/mo for licensing fees. Additionally, it is noteworthy that some franchisees within Mochinut are reporting substantial financial returns, with an estimated cashflow of upto $180,000, according to a post by Bizbuysell.

When segmented by State, it seems that California has an overwhelming number of locations opened relative to Texas, New Jersey and Florida.

Top Flavors

When looking across top Mochi Donut chains, we saw a few flavors were really popular. Strawberry, chocolate, and matcha were all up there, but what was really surprising was how many times 'black sesame' and 'churro' flavors popped up. Consumer insights manager, Virginia Dare, thinks that these flavors might be so popular because they remind people of "carnival" and may "bring back happy memories and a sense of childhood bliss" to customers.

Flavor Innovation & Menu Rotation

Mochi donuts are known for their diverse and creative flavor options. These include both unique flavors like 'Yuzu' and 'Billionaires' Bacon', as well as popular branded ingredients like 'Oreos' and 'Nutella'. Another aspect that makes Mochi donuts appealing to customers is the frequent menu changes, as they offer a new selection every two weeks. This keeps customers engaged and looking forward to new offerings, and they can stay updated by following the brand on social media.

Conclusion

Mochi Donuts have been gaining popularity rapidly, and are a unique twist on the classic donut. The bright colors and playful shape of mochi donuts, resembling a flower or bracelet, make them highly visually appealing and likely to be shared on social media platforms like Instagram and TikTok. Utilizing the latest virality strategies popularized through social media such as rotating menus, instagram friendly colors, and built in gluten-free properties has allowed this hybrid pastry to grow explosively in the past year. While the TikTok algorithm has been generous to MochiDonuts, it will be interesting to see if this product category will push to evolve its innovation through unique menu innovation in order to gain further marketshare and momentum.

Special thanks to ChatGPT for content/research, Lino Fabiani for edits