Summary of Podcast Episode 88: "Fortune Cookies"
The Economics of Everyday Things
Host: Zachary Crockett
Guests: Jennifer Lee (Author of Fortune Cookie Chronicles), Norman Wang (CEO of Wonton Food)
Release Date: April 14, 2025
Introduction
In episode 88 of The Economics of Everyday Things, host Zachary Crockett delves into the intriguing world of fortune cookies. Far from being a simple post-meal treat, fortune cookies represent a fascinating intersection of culture, business, and economics. This episode explores their origins, production, economic significance, and cultural impact through insightful conversations with Jennifer Lee and Norman Wang.
Origins and History of Fortune Cookies
The episode begins with an exploration of the true origins of fortune cookies, challenging the common belief that they are inherently Chinese. Jennifer Lee, author of Fortune Cookie Chronicles, sheds light on her research:
Jennifer Lee (04:02): "Chinese food is actually generally terrible at desserts. We have mooncakes, which basically taste and look like hockey pucks... When I looked at the fortune cookie and the dessert tree of China, there was no genetic ancestry, not even close."
Lee's investigation reveals that fortune cookies likely originated in Japan in the mid-19th century as sugiura senbei or fortune crackers. Japanese immigrants in California introduced them around 1906, where they were adopted by Chinese restaurants to cater to American tastes. This fusion became popular among American soldiers during World War II, solidifying their place in Chinese-American cuisine.
Wonton Food and the Fortune Cookie Industry
Norman Wang, CEO of Wonton Food—the largest fortune cookie manufacturer—provides an insider’s perspective on the industry’s evolution:
Norman Wang (08:21): "We're talking about millions of cookies a day."
Wonton Food, founded by Wang's father in the 1960s, transitioned from a noodle company to a dominant player in the fortune cookie market. Despite the industry's competitive nature, Wonton Food controls a significant market share, producing over five and a half million fortune cookies daily across facilities in New York, Texas, and Tennessee.
Production Process and Business Challenges
The episode offers a detailed look into the manufacturing process of fortune cookies, highlighting the blend of automation and craftsmanship required:
Norman Wang (13:46): "That's actually one key part is the mixing, making sure that the batter has the right combination of viscosity and strength."
The production involves mixing ingredients, shaping the cookies while hot, inserting fortunes, and packaging them efficiently. Despite automation enabling the production of 8,000 cookies per hour, the true challenge lies in creating meaningful and appealing fortunes—an aspect that remains labor-intensive and crucial for maintaining consumer satisfaction.
Economic Significance and Market Dynamics
Wonton Food operates in a market with thin profit margins due to the commodity nature of fortune cookies. Restaurants expect these cookies as a free addition to their meals, compounding the economic pressures:
Jennifer Lee (16:26): "Once you have those sales accounts, it is not that expensive to then upsell and add additional products."
Prices are negotiable, often less than 4 cents per cookie, especially for bulk orders. The industry's reliance on a few major players like Wonton Food makes it highly competitive and price-sensitive.
Fortune Cookie Messages and Cultural Significance
A unique aspect of fortune cookies is the messages they contain. Wonton Food maintains a database of over 10,000 fortunes to ensure variety and relevance:
Norman Wang (19:42): "Trust in your dreams. They hold your potential. Embrace your destiny and let go of fear and doubt."
However, crafting these messages is challenging. They must resonate with American sensibilities while maintaining a semblance of Chinese philosophical roots. Past experiments with ominous fortunes even coincided with the Great Recession, highlighting the delicate balance required in message crafting.
Distribution and Market Reach
Wonton Food’s distribution network is extensive, supplying fortunes to over 45,000 Chinese restaurants across the United States, surpassing major fast-food chains in number. While efforts to globalize have met with limited success—particularly in China, where the concept remains foreign—the spread of Chinese restaurants internationally has gradually increased the demand for fortune cookies.
Cultural Impact and Consumer Perception
Jennifer Lee discusses the mystical allure of fortune cookies:
Jennifer Lee (22:19): "It's a non-religious, non-woo-woo way to believe that there's a larger cosmic framework... It feels like a custom message from the cosmos to you."
Fortune cookies offer a moment of reflection and joy, serving as conversation starters and personal inspirations for diners. Despite their commercial origins, they hold a special place in the dining experience, symbolizing a blend of culture and personal connection.
Conclusion
The episode concludes by emphasizing the enduring popularity and economic significance of fortune cookies. Through the expertise of Jennifer Lee and Norman Wang, listeners gain a comprehensive understanding of how these seemingly simple treats are embedded in cultural practices and economic frameworks. Fortune cookies exemplify how everyday items can carry rich histories and complex economic stories, making them a perfect subject for exploring the economics of daily life.
Norman Wang (22:59): "This little piece of paper that's been folded into a cookie dough brings so much joy, and it gives people an opportunity to reflect and then also sparks dinner conversations."
Notable Quotes:
- Jennifer Lee (04:02): "Chinese food is actually generally terrible at desserts."
- Norman Wang (08:21): "We're talking about millions of cookies a day."
- Norman Wang (19:42): "Trust in your dreams. They hold your potential."
- Jennifer Lee (22:19): "It's a non-religious, non-woo-woo way to believe that there's a larger cosmic framework."
- Norman Wang (22:59): "This little piece of paper that's been folded into a cookie dough brings so much joy."
This episode offers a compelling exploration of fortune cookies beyond their sweet exterior, uncovering the intricate balance of culture, business, and consumer behavior that sustains their presence in American dining.