About us

The story of Yum Yum Donut Shops begins in 1971, when Phillip C. Holland, an entrepreneur with a vision for bringing quality donuts to Southern California, founded what would become one of America’s most beloved regional donut chains. Holland’s entry into the donut business was not accidental but rather the result of valuable industry experience he had accumulated through his connections. He had become familiar with the donut business through a friend who owned a shop, gaining crucial insights into the operations and challenges of running a successful donut establishment. Even more significantly, Holland had spent time working in North Carolina alongside Vernon Rudolph, the legendary founder of Krispy Kreme Donuts, where he learned the fundamentals of the donut industry from one of its pioneers. This combination of hands-on experience and mentorship from industry leaders provided Holland with the foundation he needed to launch his own venture.

Holland established the first Yum Yum Donut shop in a former Orange Julius store located at Avenue 26 and Figueroa Street in the Cypress Park district of Los Angeles, California. This location would prove to be more than just a starting point; it remains in operation today as one of the highest-volume shops in the entire chain, standing as a testament to the enduring quality and appeal of Holland’s vision. The transformation of the space from a beverage stand to a donut shop symbolized the changing culinary landscape of Los Angeles and the growing American appetite for freshly made donuts and coffee. The Cypress Park location quickly established itself as a neighborhood favorite, drawing customers with its promise of freshly made donuts and a welcoming atmosphere.

By 1973, just two years after opening his first shop, Holland had expanded to three Yum Yum donut locations and was ready to take his growing business to the next level. It was at this critical juncture that Holland placed a newspaper advertisement seeking a business manager to help him manage his expanding operations. This advertisement would prove to be one of the most consequential business decisions of his life, as it led him to meet Frank Watase, who would become not just his business partner but also a key figure in the company’s remarkable growth story. Recognizing Watase’s potential and sharing his vision for the future, Holland invited him to join as an equal partner, marking the beginning of a partnership that would transform Yum Yum Donuts from a small local chain into a regional powerhouse.

The partnership between Holland and Watase proved to be incredibly fruitful, as both men brought complementary skills and an unwavering commitment to hard work. Since donut shops operate seven days a week, often from early morning until late at night, the partners invested endless amounts of time and effort into operating their existing shops while simultaneously scouting and developing new locations. Their hands-on approach and dedication to quality became ingrained in the company culture, creating a strong work ethic that persists throughout the organization to this day. This period of intensive growth saw Yum Yum Donuts expand rapidly throughout the Los Angeles area and beyond, eventually reaching over 100 locations under their joint leadership. The success of the chain was built on a simple but powerful formula: consistently high-quality products, exceptional customer service, and strategic location selection in growing communities.

The company underwent a significant transition in 1989 when Phillip Holland decided to retire after nearly two decades at the helm of the business he had founded. Holland sold his share of the company to Frank Watase, who took over sole ownership and leadership of Yum Yum Donuts. This transition marked the end of one era and the beginning of another, as the Watase family assumed complete control of the company’s destiny. Frank Watase continued to operate and expand the business with his son, Lincoln Watase, ensuring that the company remained family-owned and committed to the founding principles that had made it successful. This generational transition demonstrated the strength of the business model and the values that Holland and Watase had established together.

The early 2000s brought another major milestone in Yum Yum Donuts’ history with a transformative acquisition that would significantly expand the company’s footprint and influence in the donut industry. In 2004, Yum-Yum Donuts purchased Winchell’s Donuts, a fellow California-based donut chain, in a strategic move that instantly added 70 donut shops to their portfolio. This acquisition was not just about numbers; it represented a consolidation of two established brands with complementary strengths and shared values. The combined operations created a powerful presence in the California donut market, with Yum-Yum Donuts and Winchell’s operating both under the same corporate umbrella while maintaining their distinct brand identities. As of 2019, there were 126 Winchell’s and Yum-Yum Donuts shops operating in the greater Los Angeles area alone, demonstrating the massive scale and reach of the combined enterprise.

Today, Yum Yum Donut Shops, Inc. stands as the largest chain of privately owned donut shops in the United States, a remarkable achievement for a company that started from a single converted Orange Julius stand in Cypress Park. The company continues to be headquartered in the City of Industry, California, maintaining its California roots and focus on serving local communities. All 71 Yum Yum Donuts locations are concentrated in California, reflecting the company’s strategy of deep market penetration rather than geographic expansion. The business remains family-owned and operated, with Lincoln Watase serving as President following the death of his father Frank Watase in September 2020. This continued family stewardship ensures that the company stays true to its founding values while adapting to changing market conditions and consumer preferences.

The enduring success of Yum Yum Donut Shops can be attributed to several key factors that have remained constant throughout its history. The company’s commitment to quality ingredients and freshly made products has never wavered, even as the fast-food industry has increasingly moved toward pre-made and frozen items. The strong work ethic established by Holland and Watase continues to drive the organization, with employees who take pride in maintaining the high standards set by the founders. Additionally, the company’s strategy of maintaining a strong presence in specific geographic areas rather than pursuing rapid nationwide expansion has allowed it to build deep connections with local communities and develop a loyal customer base that spans multiple generations.

Yum Yum Donut Shops represents more than just a business success story; it embodies the American dream of entrepreneurship and the possibilities that arise from hard work, vision, and partnership. From its humble beginnings in a converted storefront to its current status as a dominant force in the California donut market, the company’s journey reflects the broader story of immigrant and minority entrepreneurship that has shaped Los Angeles’s culinary landscape. The donut industry, particularly in Southern California, has provided opportunities for countless families to achieve economic stability and prosperity, and Yum Yum Donuts stands as one of the most successful examples of this phenomenon. The company’s continued growth and success serve as an inspiration to aspiring entrepreneurs and a reminder that even the most ambitious dreams can be realized through dedication, partnership, and an unwavering commitment to quality.

As Yum Yum Donuts moves forward into its sixth decade of operation, the company faces both opportunities and challenges in an evolving food service landscape. Changing consumer preferences toward healthier options, increased competition from national chains, and economic uncertainties all present tests for the business. However, the company’s strong foundation, loyal customer base, and commitment to its core values position it well to navigate these challenges and continue its tradition of excellence. The story of Yum Yum Donut Shops is far from over, and the next chapters promise to build upon the remarkable legacy established by Phillip Holland and Frank Watase, continuing to bring joy to customers one delicious donut at a time.