Lily’s Donuts debuted Thursday at the Santa Barbara Public Market, introducing a nostalgic take on the classic Southern California donut shop, reworked with higher-end ingredients and a more refined approach.
Led by local restaurateur Omar Khashen and partners Komron Tarkeshian and Gary Coburn, the opening marks the brand’s first brick-and-mortar location, with a larger location on lower State Street expected to follow ahead of summer.
“This is a great starting point for us,” Khashen said. “The Public Market lets us introduce the concept, and the State Street location will allow us to expand the menu and show the full scope of what we’ve been building.”
The idea draws from a familiar format rooted in neighborhood donut shops near the beach, filtered through a more deliberate lens. The shop’s bright, coastal palette pulls from late-1960s Ford Bronco colors, a nod to the era and environment that helped shape the concept.
“I grew up in Orange County, and going to donut shops near the beach was part of our childhood,” Khashen said. “We wanted to bring that here, but as a higher version of what we grew up with. We spent a lot of time building out the brand and developing recipes.”
The menu leans into recognizable flavors with a twist. An old-fashioned donut takes cues from the classic cocktail, finished with a spritz of bourbon extract, while a blueberry mojito is among the rotating offerings. The full lineup is expected to reach roughly 20 flavors, with new additions introduced regularly.
Rather than relying on artificial colors or standard toppings, the team emphasizes ingredients that carry both flavor and visual impact, using elements like dehydrated fruit to build color naturally.
“We try to recreate a lot of the colors from actual fruit rather than using artificial colors,” Khashen said.
Ingredients are sourced locally when possible, with Chef Nick Dubois leading much of the from-scratch preparation and incorporating more farmers market produce over time.
The Public Market shop opens with about 10 flavors, with plans to expand as the team settles in. Donuts will be stocked throughout the day until sold out, with fresh batches prepared regularly.
Alongside the donuts, Lily’s offers a custom coffee blend developed with Bonito Coffee Roasters in Ojai. Sourced from a single farm in Nicaragua, the coffee is brewed on a high-capacity Ground Control system designed for consistency and speed.
“We wanted it to feel like a donut shop coffee, but really good quality,” Khashen said.
The shop is designed to complement the Public Market’s mix of vendors while adding a dessert-focused offering that balances familiarity with execution. Its vertical display case places more playful flavors at eye level, creating a sense of discovery for younger customers.
“We wanted it to be a place where people can build the same memories that we had growing up,” Khashen said.
A second location on lower State Street will serve as the primary production hub and expand the menu beyond donuts, with plans for popsicles made from seasonal ingredients as well as beer and wine pairings designed to complement the flavors.
As that location comes online, the team expects to build on its initial momentum, expanding production and establishing a broader presence in Santa Barbara’s evolving dessert landscape.
