Dochi is a Japanese mochi doughnut shop that launched in the Uwajimaya food court in Seattle. Since opening two weeks ago there's been ~ a two-hour wait for its Ube Glaze and Taro Pebbles donuts until it sells out early in the day. Do they have a moat? https://www.seattletimes.com/life/food-drink/20-new-openings-in-seattle-including-a-ramen-shop-from-an-iron-chef-and-a-japanese-donut-shop-that-draws-lines-two-hour-long/ …
The whisper number from analyst channel checks is that the mochi donuts may be coated with scores of "fruity" taro pebbles, which is known to attract day traders. These mochi donuts have higher trading value than a cold chicken sandwich. Donut half life is still short tho.
My test for determining whether a moat exists is quantitative and has been adopted verbatim from work done by Michael Mauboussin here: https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&sourceid=em&document_id=1066439791&serialid=RojFyPPuyB52GjdsfOiNhlbEB2L63HISLZqSTpL1p48%3d … A business that has only been open a few weeks doesn't meet the quantitative moat existence test since that takes years.
It is possible to better forecast whether the quantitative test for a moat will be met by considering qualitative factors like: 1. Supply-Side Economies of Scale and Scope; 2. Demand-side Economies of Scale (Network Effects); 3. Brand; 4. Regulation; 5. Int. prop. and 6. Culture.
You can follow @trengriffin.
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.
Enjoy Threader? Sign up.
Since you’re here...
... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.