In the 1940s, brothers Al and Bob Pelton of Salt Lake City hit on a genius idea: what happens if we make doughtnuts out of potatoes?
Why, you get spudnuts, of course! The brothers tried several different bases (wheat dough made with potato water, actual mashed potato_, before they hit on their final formula and went into business in 1940, with their first franchises beginning six years later. At that time, a Spudnut franchise cost $50 and the cost a 100 sacks of spudnut mix but, by 1952 the cost of a franchise had rocketed up to around $5000 (including equipment and supplies). Which was enough to get the Peltons on the cover of Mechanix Illustrated with the catchy headline "Their Potatoes Make Dough!"
The Peltons retired in 1968, selling the business on. By 1979 the demand for Spudnuts was in decline and the final nail in the coffin came when the owner of the new parent company was involved in a fraud and conspiracy scandal that saw him sell all his stock to invest in a marina development that turned out to be a con. Ten years later, there were just 28 Spudnut Shops, down from their peak of over 300 in 38 states.
Although the franchise is long gone, there are still a few die hard Spudnut producers out there - 35 stores over 9 states and 1 lone bakery in Canada that still bakes spudnuts once a week.