The craze for Asian-themed treats—whether boba drinks, mochi desserts or even custard puff pastries—is showing no signs of slowing down anytime soon. This thirst for Far East sweets stems from the rise of the Asian population in the U.S., which grew 81% from 2000 to 2019, and is expected to be the largest immigrant group in the states by 2055. In addition, the millennial and Gen Z audience is gravitating to more internationally inspired tastes, due in part to the internet-driven ease with connecting to far-flung cultural influences. All of this, combined with the curbs on spending that Americans will be facing because of inflation concerns, means that a rise in lower cost “guilty pleasure” dessert-style treats will be prioritized for dining out options. Asian treat brands expected to continue their U.S. expansion include Mochinut, Beard Papa’s and 85°C Bakery Café.
Mochinut is extremely aggressive with growth, opening units at a rate of five per month, which amounts to a goal of opening between 60 and 70 new locations per year in the U.S. over the next two to three years. Territories targeted for immediate expansion include Atlanta, New York City, Richmond and Virginia Beach, Va., Las Vegas, and all regions within Texas, California and Florida. Expect further franchise units to be opening up soon throughout West Virginia, North Carolina, Colorado, Idaho, Georgia, Minnesota and Louisiana. Mochinut seeks 1,000- to 1,500-s.f. urban and suburban inline space within power centers and grocery-anchored shopping plazas.
A large Asian population in the vicinity is a plus. Preferred co-tenants include other eateries, such as Subway, as well as ethnic markets and popular coffee brands, including Starbucks. Mochinut is a stretchy, chewy donut made from Japanese rice cake, known as mochi, and each shop features a rotating selection of six different flavors changed out twice a week, such as matcha (green tea), ube (a purple yam), lychee (an Asian tropical fruit), red velvet and chocolate. The shops also sell various flavors of Korean rice flour hot dogs and boba tea.
Beard Papa’s has projected a goal of opening up between 25 and 35 new units per year over the next two to three years, especially in markets where it is just beginning to have a presence. This includes San Diego, Phoenix, Denver, Chicago, Austin, Houston and Atlanta. Its units can range from 800 to 1,800 s.f., and can be regional center food court spaces, inline spaces in strip malls and power centers.
Street-front retail sites in resort destinations, especially near hotels, will also be desired. Although Beard Papa’s is open to shopping centers that specifically cater to a large Asian population, lately the brand has been targeting more higher end, luxury shopping and lifestyle centers in urban and suburban locations near office and multifamily developments.
For example, a Beard Papa’s that opened in La Jolla, Calif., in February, which was purchased rather than leased, is on an upscale street-front site that caters to local business customers and tourists alike. The brand will also open an 1,800-s.f. unit in a newly constructed retail building that will house up to six tenants in Duluth, Ga., which is directly across the street from a 286-unit upscale apartment community.
Preferred co-tenants include eateries and grocers that cater to Asian-themed tastes, such as Gen Korean BBQ and Daiso, and other non-competing treat brands, such as Cold Stone Creamery. The Japanese-based Beard Papa’s sells cream puffs baked from dough imported from Japan in a choice of eight different flavors, including green tea or strawberry, and with four different custard filling options, such as chocolate or vanilla. Each shop also sells additional desserts, such as cheesecakes, as well as coffees, teas and custard cream drinks.
85°C Bakery Café, a Taiwanese-based bakery chain that had a strong expansion push three years ago, has recently taken steps to prime itself once again for upcoming growth in the Western states. The brand will open its first Arizona location by early summer, with a 1,470-s.f. unit in the Chandler Ranch power center in Chandler, a community with a rising Asian population. 85°C Bakery Café also signed a lease for a 66,510-s.f. industrial space in Buena Park, Calif., last September in order to increase its distribution center capacities. This is because the brand anticipates more U.S. expansion into new territories, expected to be up to 15 to 20 new units per year over the next three years. Look for neighborhoods in the Phoenix metro to especially be targeted, in addition to all regions in Texas, as well as the Northern and Southern California metros.
Expect 85°C Bakery to especially seek sites that can range from 1,400 to 5,000 s.f. in Class A open-air malls, power centers, strip malls and grocery-anchored centers in metros with a large Asian population. Space can be inline, end cap or standalone pads. Popular co-tenants include other Asian retailers, such as SomiSomi, 99 Ranch Market and Jollibee, and well as other treat brands, such as Häagen-Dazs. The 85°C Bakery Café, named for the ideal temperature of the perfect cup of coffee, serves a wide variety of Taiwanese pastries, including borohs, taro puffs and pork sung buns, in addition to other popular baked treats, such as Aussie meat pies and chocolate croissants. Milk teas and a variety of coffee drinks are also served.
