Voodoo Doughnut was founded in May 2003 by Kenneth "Cat Daddy" Pogson and Richard "Tres" Shannon,[2][3] with the first shop that opened on Southwest Third Avenue in Old Town Portland.

[16][4] During early 2011, combined sales at the Portland locations were estimated to have been about twenty tons of doughnuts per week in the summer.

[10][27][3] Pogson and Shannon retained an ownership interest, and members of Fundamental Capital joined the company board.

[29] By 2023, the company had expanded into a multi-state chain with stores in California, Colorado, Florida, Washington and Texas in addition to multiple locations within Oregon.

[30][31] Requests for increased security was one of the things sought by the union following an incident involving a man armed with a hatchet in March 2020.

At the time, they were seeking improved wages, better and more consistent scheduling, and increased safety standards in the wake of robberies and attacks on employees at the location.

[5][6] The "Doughnut of Love" was created for use in wedding ceremonies performed at Portland shop locations, and in 2011 was described by Abby Sewell of the Los Angeles Times as "a terrifying concoction piled high with sprinkles, chocolate chips and pretzel sticks.

[48][53][51] Limited edition doughnuts have also been made, including as tributes to public figures, some for sale and others for display in the shop.

[54] Timothy Malcolm, the dining editor for Houstonia Magazine, discussed nine doughnuts in a 2020 review of the Houston location, and ranked the Bacon Maple Bar first, followed by the "Voodoo Doll", "Old Dirty Bastard", "Viscous Hibiscus", Blueberry Cake, "School Daze 'PB&J'", "Marshall Mathers", and "Maple Blazer Blunt", with "Tangfastic", a variety made for Houston because of NASA and Tang's connection, ranked last and described as "Sugar overload.

[55] Sutter also commented on the "Cock and Balls" doughnut, stating, "It weighs like 10 pounds, gets its own box, costs $6.50 and looks like a penis.

[60] The label expanded operations to include remastered versions of recordings made by Shannon in the early 1990s while he was an owner of the X-Ray Cafe in Portland.