Why did Joe create hundreds of WP categories?

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Joe sells different types of donuts in all major cities and has written hundreds of articles designed to attract customers. Each article is specific to a geographic location and a type of donut. However, there is no index or blogroll in any of these articles that link to any of Joe’s other locations or other types of donuts. They are stand-alone articles.

Joe’s theory is that creating specific categories for each city or type of donut will attract those doing organic Google searches. This has resulted in Joe’s WP dashboard containing hundreds of categories, buttressed by tags.

Typical categories:
California Donuts
Los Angeles Donuts
Glazed Donuts

Is this approach detrimental to overall SEO or would these more targeted categories be advantageous?

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