Peggy Ann Bakery sold out of donuts in the first 30 minutes on the day it opened

Tri-Cities Original

It may be named Peggy Ann Bakery, but the business’s namesake says it was her husband’s idea.

“My husband named it Peggy Ann,” said Peggy Ann Arrowood. “He said ‘it is yours and you’re going to take it.'”

She says her late husband, Bill Arrowood, was the original baker in the family. Before opening Peggy Ann, Bill managed a bakery in a grocery store. That’s where Peggy Ann learned to decorate cakes and even took a class from an expert.

Bill and Peggy Ann Arrowood

“She said I was very distinct…I wanted it perfect,” Peggy Ann said.

Fast forward to 1982 when the Arrowoods decided to open their own bakery, with Peggy’s Ann name on the sign.

“He didn’t want to be aggravated with the phone calls so he called it Peggy Ann’s bakery. He didn’t want to take the phone calls,” said John Arrowood, Bill and Peggy Ann’s son.

The Greeneville bakery has been popular ever since it opened its doors.

Actually, it was popular before the doors even opened.

“We made three gallons and dad said we’ll make three gallons and we’ll probably be selling donuts at 12 o’clock,” John said. “Well, we opened at 5:30 because people were at the door and at 6 o’clock we were out of donuts and I’m talking 50-dozen donuts.”

Three generations have kept the Peggy Ann Bakery going for nearly four decades.

37 years later, it’s not unusual for the bakery to go through 400 pounds of flour in a single day, just for donuts.

“Our number one selling item is probably the original glazed donuts,” said Stacy Martin, Peggy’s Ann grandaughter.

WEB EXTRA: There’s one day of the week that’s the busiest for Peggy Ann because of one item that’s only sold on that day.

Three generations have kept the bakery going for nearly four decades.

Now, Peggy Ann is about to open a second location in Johnson City at 803 W. Walnut Street.

“I never did look at us being a big-time bakery,” John said. “I looked at us being a good ole country bakery. People would come in and say ‘no you’re not a country bakery’. And I’d say – ‘oh yes I am.'”

And if her late husband were still alive today, Peggy Ann says she knows that Bill would be satisfied with the donut dynasty they’ve created.

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Born and raised in the Tri-Cities, Josh Smith has been a member of the WJHL team since 1999. His family roots go deep in the region, and he’s traveled through almost every part of it covering news on local TV since 1995. When he’s not on the job, he’s with his wife, two sons, and daughter.   “They’re the best part of me,” he said.   You may run into them biking on the Tweetsie Trail, hiking around Bays Mountain Lake, or browsing the shelves at the local public libraries.

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