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The Doughnut Bubble

Currently there are in excess of 20 stores that have propped up around the capital with the majority having appeared over the past two years. Michael Lanigan reports.

“IT IS WITH a heavy heart that we have made the decision to take an extended break from doughnut making”, wrote Hilary Quinn, owner of Dublin Doughnuts Company on
Tuesday 24 October.

“Whilst we have loved every minute of the past three years, the time has come to hang up our aprons.”

A supplier to cafés such as 147 Deli, Vice Coffee Inc., 3fe, Dublin Barista School, Camerino and Provender & Family, while doing private orders on the side, her company had been active since 2014 before she decided to make her last batch that Saturday.

“It had been on my mind a while,” she said. “I use the word tired and lethargic, but it’s been a solid few years too.”

The announcement comes during a moment dubbed ‘Peak Doughnut’ due to the saturation of the market in Dublin.

Currently there are in excess of 20 stores that have propped up around the capital with the majority having appeared over the past two years.

It could be read as miniature bubble and naturally as people speculate over the trends decline, within days Hilary was called the “first casualty”.

“I wouldn’t say though that saturation was one of the main reasons,” she contests.

“It’s certainly disheartening to see something I make so lovingly being pumped out by
machines every day. That’s something I definitely did not envisage, but that’s how business works.

Doughnuts aren’t going to go much further if this is the case. We’ve had the same thing with cupcakes and alarm bells are now ringing. I’m not closing because of financial reasons. I want to leave with my head high and in a good place, rather than being forced into it by the market.

Hilary was 21 when she set up the company. At the time it was a gaping hole in
the market, not a bandwagon.

“I thought Dublin was in need of something like this. I was laughed out of banks, business courses and Dublin’s enterprise board. They all said it would never work. The only place was the small Rolling Donuts kiosk. Then Augier Danger came in around 2015, and I’ll admit, I was a bit tetchy when that happened.

They got the wave going. Now, it’s like Starbucks, there’s a doughnut shop on every street corner.

What set Aungier Danger apart as a brand, which captivated people was that it carried
the same stickiness and exclusivity as the cronut, a hybrid of the doughnut and croissant
that from 2013 to 2016 inspired people to queue for two hours in New York just to get
in on the action.

A New York Post headline ‘People in line for cronuts unfazed by nearby corpse’ speaks volumes to this regard.

It was a commodity that was unique, and highly limited, selling out within an hour of Dominique Ansell’s SoHo bakery opening at 8am.

Thriving on word of mouth, social media and the urge to find out what others were
fussing about, as news went across the Atlantic a business such as Aungier Danger was able to capitalise upon that obsession.

On its opening day, 19 October 2015, after taking up residence in a place formerly held by Rolling Donut, the entire deli was sold out in two hours.

Reported on later in various outlets, over subsequent days Irish people too were rushing to buy the treat before the shelves were politely looted.

Clearly a commodity that had stickiness, for aspiring entrepreneurs it was an ideal
opportunity, especially given the simplicity of setting up a shop.

“It’s easier than cafés,” Hilary said.

If you’re doing production off-site, then it’s the simplest model. You need a counter, till, gloves and tongs.

The main asset however, was social media, and more specifically Instagram.

“That’s my target audience. It’s a visual product. People want to take a picture with their
doughnut, coffee and a Dublin background. That’s what people want to see.”

Here, Hilary brought back the comparison to the cupcake fad.

“It’s a lot like Magnolia Cupcakes in New York. That started the whole cupcake thing, and you can almost trace it back to one specific scene in Sex and the City where Carrie sits outside stuffing her face with those cupcakes, lamenting over a personal crisis. The culture here copies America. It starts there. Then it hits London and finally Dublin.”

This leads us down a momentary pop cultural rabbit hole. When I ask has she noticed
anyone referencing anything similar on the big or small screen in the context of doughnuts, she is unsure for a moment.

“I’ve heard people talking about Gilmore Girls and a character sitting in their
sweat pants, getting fat with a box of doughnuts. People say they want to have their
Gilmore Girls day. There was also something in Twin Peaks too.”

Both shows, years after finishing, were given a revival during a period in which nostalgia was all consuming.

In the broadest of terms, the past two years have been dominated by nostalgia, on a political, cultural and social level. On a political level, two of the major events to captivate were Trump and Brexit, and both called for a return to an earlier, more idealistic period.

Culturally, cinema has become dominated by reboots, revivals and sequels to films,
largely those coming from the 1980s, another era in Western history dominated by
nostalgic idealism.

And of course, one of the more vital aspects of marketing the doughnuts, which is Instagram was the social media platform originally launched with a strong nostalgic spin; vintage filters, square photos and the site’s plain white layout, all of which were designed to imitate the Polaroid.

“Instragram is where the trend emerged, because when I first started everything was so
photographic,” Lisa Quinlan, head of Rolling Donuts says, her company having grown
from a small O’Connell Street kiosk set up by her father in 1978.

Certainly, with our business, there is a massive sense of nostalgia attached to it.

“The whole joy in doughnuts is nostalgia,” Hilary adds.

“For me it was eating Cuisine de France doughnuts that my mum got when I was younger. My own recipes are done for nostalgic purposes, like New York Cheesecake or Daim Bar doughnuts. Daim bars amazed me as a kid.

“You see, there’s more to this food than meets the eye. It sparks something in people. It gets them thinking. It’s not just that Nutella tastes good. It goes deeper than that.”

In agreement is Ken Cody, owner of Revolution Bakery.

“It’s our childhood that inspires this. It puts a smile on people’s faces. There’s definitely that association, because they bring back old memories, from childhood or for a lot of people involved, the J1.”

Still, if romanticism triggered the trend, the market is what will herald its inevitable decline, although saturation is but a single factor here.

“There is always going to be a doughnut shop,” he notes. “They’ll still be opening everywhere, like the kind of set ups you see in retail chain outlets. That’s made by a white-label bakery. Those doughnuts are pure and utter processed food, and if you knew what was in the dough or the packaging, you wouldn’t eat it.”

Hilary noted similar issues with competition as rival companies are capable of churning out numbers that exceed her cap of 350 per day, while ingredients such as butter are substituted for margarine.

For bakeries who continue to resist using cheaper ingredients, the past few months and
years to come are the uphill struggle, which will likely begin to see people either
dropping out or altering recipes.

Those pursuing the craft from an artisan stance will be suffering a blow here due to wholesale prices, Ken thinks.

“This time two years ago, we were buying a tub of vanilla pods for €50. When I started, they were €40. Now, they are €100. They are dearer than gold. We still use them, but you won’t see many now. The same product is 150% dearer than it was two years ago.”

This had been set off by two factors in Madagascar. Between 2005 and 2015, a kilogram
of vanilla pods was trading for $30. The crop was in abundance and sparked a feeding
frenzy.

However, as the vanilla farmers were finding themselves short-changed on the
deal, they burned their vanilla crops in protest, with the price rising to $100 per kg.
Thereafter, Cyclone Enawo devastated the island causing prices to shoot up to $600 per
kilogram.

“Everything is up though. Madagascar is just the most drastic one. Butter and cream too
have gone up by 20 to 30%,” due to poor harvest in Europe and the increase in China’s
demand for pastries, which are putting enormous pressure on supply as 100kg of butter
leapt from €400 in January 2017 to €518 as of December (it hit a high of €650 in September).

“Really it’s everything,” Lisa adds. “The money we spend on nuts is nuts. We use a lot of
varieties and those prices are changing. Flour, eggs, coconut oil, minimum wage, they’ve
all gone up, so if you can survive fair play.”

Factors, such as these create a dilemma.

Considering the average price of €3  a doughnut is already relatively controversial,
the final question is who will be paying more. In the case of Lisa and Ken, both say they
are willing to concede these losses.

“We couldn’t do that to customers,” Lisa says. “We have to take the hit and figure out from there what to do. It’s just a risky business now. If you’re going into it now, unless you are passionate enough to find and fill a gap that is not already filled, it is challenging.”

As such Dublin “is now awash with poor quality doughnuts and pop ups, but that’s just
healthy competition and you have to roll with those punches”, Hilary concludes.

“I’ll miss it though. I’m going home to Mayo, haven’t been there since May. My sister who
lives in England sees my parents more than I do. I’ll be helping out set up a pub in Clare
and taking time out to start the new trend, because that’s apparently what I do. This was
always going to be a footnote, which you look back on when you’re 90 and say,
‘Remember that time I did doughnuts?’

“It will always be the same whether doughnuts, coffee or cupcakes – variety and making something different helps you survive.”

Related: The owner of Dublin’s Rolling Donut chain says we’ve finally hit peak doughnut

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58 Comments
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    Mute Lily
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    Dec 26th 2017, 10:15 AM

    Lidl donuts for 59 cent are the best!

    137
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    Mute Insect Overlord
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    Dec 26th 2017, 5:28 PM

    @Lily: Do they sell donuts?

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    Mute Sean
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    Dec 26th 2017, 7:56 PM

    @Insect Overlord: yes they sell Lidl donuts for 59 cents. Hard to see how you missed that in the previous comment. 59 cents. Lidl donuts. Just think 59 and Lidl and donuts. Write it on your hand now so you don’t forget.

    31
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    Mute TheJournalAsGaeilge
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    Dec 26th 2017, 10:32 AM

    Tá go leor daoine dúr anseo anois nach bhfuil?! Críost… I scuaine do taoschnónna…
    There’s many stupid folks out there isn’t there?! Christ… queuing for doughnuts…

    103
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    Mute P.J. Nolan
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    Dec 26th 2017, 11:25 AM

    @TheJournalAsGaeilge:
    Ah I see you have realised that without translation into a recognised language your comments where ignored.
    Glad to see you have come to your senses.

    64
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    Mute John Doe
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    Dec 26th 2017, 1:16 PM

    @P.J. Nolan: Did you not recognise the first language. Duine dúr indeed

    26
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    Mute P.J. Nolan
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    Dec 26th 2017, 1:40 PM

    @John Doe:
    Google translator is handy!! (even though I spent 10 years in a class with an Irish teacher)

    8
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    Mute TheJournalAsGaeilge
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    Dec 26th 2017, 1:52 PM

    @P.J. Nolan: Tá ceart agat, ní raibh siad ach as Gaeilge roimh sin. Ach bhí na freagartha agus drochíde a fuair mé scannalach ar fad. Is tír na gallaibh í fós, tá fhios agat féin…
    You’re right. The comments used to be only in Irish, but the reactions and abuse I received for it was disgraceful. It’s a West Brit land still, you know yourself…

    14
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    Mute TheJournalAsGaeilge
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    Dec 26th 2017, 1:58 PM

    @P.J. Nolan: achrannach? Is cuma linn. Ná chur locht ar an teanga. Chur é ar an córas, agus ansin déan rud éigin.
    Chip on your shoulder? We don’t care. Don’t blame the language, blame the system, and then do something about it.

    16
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    Mute Mr. H
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    Dec 26th 2017, 3:39 PM

    @TheJournalAsGaeilge: with it’s pure capitalist ethos and compensation culture, our wee little Island has gone to the dogs. It’s such a shame as I’m probably of the last generation that experienced real Ireland, when folks actually cared more for each other than shoving donuts in their faces.

    9
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    Mute P.J. Nolan
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    Dec 26th 2017, 4:35 PM

    @TheJournalAsGaeilge:
    while abuse is uncalled for this a bad place for someone thin skinned, but why don’t you throw out a few “West brit” insults while your at it, it’s bound to improve your argument.
    The only part of the system that I have a problem with is the ridiculous amount of money spent on a dead language.
    There is a very long list of better uses for it.

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    Mute TheJournalAsGaeilge
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    Dec 26th 2017, 5:11 PM

    @Mr. H: sin é. Is trua mór é…
    That’s it. What a shame….

    5
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    Mute TheJournalAsGaeilge
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    Dec 26th 2017, 5:26 PM

    @P.J. Nolan: Tá tú an duine soghonta, ceapaim. Ní raibh mé ach ag insint an fhírinne. Is gall thú. Is fuath leat Éire agus ár gcultúr féin. Mar sin féin, bhí an cáineadh i m’aghaidh gan ábhar! Is cuma le gnáth daoine má tá mo ráiteas as Gaeilge mar tá sé as Béarla chomh maith. Ach is gall thú agus mar sin, ní bhíonn tú ach ag tabhairt amach i gcónaí!
    I think you’re the thin skinned one. I was only telling the truth. You are a West Brit. You hate Ireland and our culture. However the criticism against me was unjustified. Normal folks don’t care if my comments are in Irish because they are in English as well. But you’re a West Brit because you’re still always giving out! SAD!

    8
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    Mute Keith Richardson
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    Dec 26th 2017, 10:35 AM

    Yet we have 50 or so too many Starbucks in Dublin.

    89
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    Mute EillieEs
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    Dec 26th 2017, 2:47 PM

    @Keith Richardson: every Starbucks is one too many. Awful coffee.

    39
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    Mute P.J. Nolan
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    Dec 26th 2017, 5:08 PM

    @EillieEs:
    someone must like it!

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    Mute John O'Shea
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    Dec 27th 2017, 9:25 AM

    @P.J. Nolan: almost everybody bar the coffee snobs.

    1
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    Mute Andy K
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    Dec 26th 2017, 10:33 AM

    Remember the “we buy your gold” shops that appeared overnight and disappeared just as quick? Same thing here.

    76
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    Mute P.J. Nolan
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    Dec 26th 2017, 11:30 AM

    @Andy K:
    A lot of those morphed into trading in electronic games and phones or pawn shops.

    20
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    Mute EillieEs
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    Dec 26th 2017, 2:47 PM

    @Andy K: or the estate agents that mushroomed before the collapse. Unbelievable to see so many new ones opening again

    11
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    Mute Liam O'Reilly
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    Dec 26th 2017, 10:20 AM

    Please invest in a keyboard with a functioning spacebar.

    90
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    Mute windbag
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    Dec 26th 2017, 10:47 AM

    5 doughnuts for a €1 in tesco….. as nice as any doughnut …..

    61
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    Mute Misanthrope
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    Dec 26th 2017, 11:10 AM

    @windbag: beat me to it.

    13
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    Mute Jonathan Power
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    Dec 26th 2017, 11:58 AM

    @windbag: Dunnes do a bag of jam ones ‘yesterday’s bake’ that didn’t sell the previous day for only 50 cent for 6 and there darn marvelous ❤️

    23
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    Mute Fiona deFreyne
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    Dec 26th 2017, 10:42 AM

    Doughnuts combine saturated fat, often hydrogenated, with large amounts of sugar. Fat and sugar combined is hugely unhealthy and also addictive.

    55
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    Mute Misanthrope
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    Dec 26th 2017, 11:10 AM

    @Fiona deFreyne: yum yum

    35
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    Mute Toki Wartooth
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    Dec 26th 2017, 11:21 AM

    @Fiona deFreyne: that’s why people love them. Live a little, eat a donought :) lettuce is not that fun

    54
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    Mute Ian Breathnach
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    Dec 26th 2017, 10:16 AM

    #notions

    36
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    Mute Chris Kirk
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    Dec 26th 2017, 10:20 AM

    There should be a government health warning with every doughnut consumed….

    41
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    Mute P.J. Nolan
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    Dec 26th 2017, 11:34 AM

    I have planning permission in to the council for a fidget spinner kiosk, should have it up and running by the summer!!!!

    30
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    Mute Anthony John Cotter
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    Dec 26th 2017, 10:39 AM

    Offbeat are off the scale in terms of yuminess.

    24
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    Mute Minom Pnnomm
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    Dec 26th 2017, 11:22 AM

    to go along with the craft beer brewing, irish whiskey and gin bubbles!

    21
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    Mute P.J. Nolan
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    Dec 26th 2017, 1:46 PM

    @Minom Pnnomm:
    I don’t doubt your right, a few good ones will survive, probably the ones that develop decent export markets.

    2
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    Mute ed w
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    Dec 26th 2017, 10:27 AM

    Surely the cup cake stores morphed into doughnut stores.

    18
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    Mute Amanda Stuart
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    Dec 26th 2017, 11:00 AM

    I make my own. They’re yummy and all my friends love them.

    17
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    Mute Sam Harms
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    Dec 26th 2017, 10:52 AM

    Dublin doughnut co weren’t great and were smaller and more expensive than their competitors. If you want to survive you need to be able to compete with the best

    17
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    Mute Mark Smith
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    Dec 26th 2017, 11:08 AM

    Totally disagree, DDCo doughnuts were far superior in quality and taste. Bigger is not better. Perfect ratio of filling to pastry. Not sickly sweet like some of the others.

    Hillary made hands down the best, by quite the distance

    It’s a shame she left the market, but she did the right thing, so many poor doughnuts out there now, most will be out of business in a few years.

    23
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    Mute Sam Harms
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    Dec 26th 2017, 11:15 AM

    @Mark Smith: have to agree to disagree. Quality and taste of Offbeat and Rolling Donut are much better. The couple of times I had Dublin Donut co they didn’t have much flavour and weren’t really worth the money

    13
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    Mute Jan Mcevoy
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    Dec 26th 2017, 11:58 AM

    @Sam Harms: I think that the above controversy will never be settled! When I lived in the States, it was the great Krispy Kremes vs Dunkin’ Donuts divide – people on both sides SWEARING that their own choice was infinitely better. Mind you, neither were charging €3 per doughnut….

    12
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    Mute Sam Harms
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    Dec 26th 2017, 5:53 PM

    @Jan Mcevoy: Offbeat is only €2! Which is part of why they are far superior

    2
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    Mute Larry Whack
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    Dec 26th 2017, 10:22 AM

    Popped up even.

    15
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    Mute Ciaran Henry
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    Dec 26th 2017, 11:08 AM

    anyone know a place that makes blue berry-filled donuts (instead of typical raspberry or strawberry jam)?

    Had them once at a function and they were magic. Haven’t been able to get them since:(

    10
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    Mute Helen Kelly
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    Dec 26th 2017, 8:21 PM

    @Ciaran Henry: Angier Danger for the Blueberry.

    In a moment of madness pickup some Offbeat ones up in Jarvis the other day. The red velvet ones were terrible, truly mass produced taste of them now. I’m sure they were better before they expanded massively.

    1
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    Mute Paul Coughlan
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    Dec 26th 2017, 12:00 PM

    Years ago the clothing industry fell apart due to foreign investment by the industry. Now small cafes delicatessens and manufacturers of specialist food products are in difficulty.

    10
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    Mute Eddie O'Neill
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    Dec 26th 2017, 1:56 PM

    Places charging E3 for a doughnut should be charged with extortion, it’s pure greed and should not be supported.

    12
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    Mute Chris Kirk
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    Dec 26th 2017, 10:20 AM

    There should be a government health warning with every doughnut consumed….

    10
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    Mute P.J. Nolan
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    Dec 26th 2017, 11:27 AM

    @Chris Kirk:
    There should be a government health warning on all the government health warnings written…..

    12
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    Mute Run Dub Crewz
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    Dec 26th 2017, 3:13 PM

    Obese millennial manna from gentrification heaven. What do you expect for the relaxed fit generation in Dublin. A Soul Cycle franchise in Portobello? No shortage of Operation Transformation seasons ahead…

    9
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    Mute Marc Power
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    Dec 26th 2017, 1:58 PM

    humans : nothing more than sheep with clothes and a bit of technology

    8
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    Mute Frank McCarthy
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    Dec 26th 2017, 2:43 PM

    Dunkin Doughnuts Boston Cream was my favorite.

    5
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    Mute Geraldine Cummins
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    Dec 28th 2017, 2:19 AM

    @Frank McCarthy: yes!

    1
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    Mute Nick Caffrey
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    Dec 26th 2017, 6:33 PM

    #Michael Lanigan: “while ingredients such as butter are substituted for margarine….” NO. you mean “while ingredients such as margarine are substituted for butter”. LEARN ENGLISH FFS!

    6
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    Mute Marc Power
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    Dec 26th 2017, 3:04 PM

    No they’re no… they’re tasteless mass produced gunk

    7
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    Mute francis dowling
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    Dec 26th 2017, 1:16 PM

    There’s alot of doughnuts out there in human form

    6
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    Mute Charliegrl80
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    Dec 26th 2017, 1:06 PM

    Krispy Kreme yummy – when I lived in the USA I used to call it Donut Heaven!

    5
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    Mute Brian Lenehan
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    Dec 27th 2017, 3:26 AM

    The next craze: Porridge, Soup and Stew kiosks. You need six Bain-Maries, 10 gastronorms, a till, a fridge and dry storage for your 16oz pots, spoons & napkins. The food can be made offsite in a central kitchen.

    Six different porridge choices (jumbo, pinhead, made on milk/water, summer-berry flavoured, etc), 10 topping options for breakfast (seeds, compotes/fruits/cream); six different soup flavours and 10 topping options/breads for lunch and six different stews (chowders, chilli-con-carne, etc) for dinner all the way to after the pubs shut.

    I don’t know how, despite all the warnings about sugar and it’s link to obesity, donut-shops are even a thing. Surely there’s a bigger market for convenient access to healthy food?

    3
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    Mute Brian Lenehan
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    Dec 27th 2017, 3:41 AM

    This idea has been at the back of my mind for the last 7 years, I just wouldn’t have the wherewithal to set up a food business myself. I reckon it would be popular enough for one business to do well from it with a few well-placed kiosks/shops, particularly with health & fitness peeps. The trick is to provide as much variety from as little stock. Nobody wants to be buying the same porridge or soup every day, but with six main choices and 10 topping options you could have a different breakfast or lunch every day for two months without getting bored.

    Just keep me in mind when you’re making your millions from it. Let’s say 1% commission on sales?

    Please, somebody, run with this idea, it’s probably worth a go.

    2
    Install the app to use these features.
    Mute Nick Caffrey
    Favourite Nick Caffrey
    Report
    Dec 26th 2017, 6:34 PM

    Why do we have to follow stupid, unhealthy and crass American fads?

    7
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