Shipley Do-Nuts expanding; to double in size in five years

Shipley Do-Nuts continues its expansion, enhanced by technology updates and a new CEO at its helm.

So far this year, the Houston-based donut and specialty food retailer has opened eight new locations, including its first-ever stores in Maryland and Georgia. By the end of 2023, Shipley plans to open at least 20 additional locations in current and new markets, including its first-ever outpost in  Orlando, Fla.

With more than 200 new units in the development pipeline as of the end of the second quarter, Shipley is expected to nearly double in size over the next five years.

The company’s growth is being enhanced by several recent technological enhancements, including an updated POS system, new business intelligence tools and an upgraded website and online ordering.

  Looking ahead, the company plans to expand its digital capabilities with the systemwide launch of its first-ever loyalty program, which it tested last quarter in select corporate- and franchisee-owned stores. Shipley is also testing a kitchen display system to improve the speed of service, with wait times decreasing by an average of 46%.

Shipley experienced 10.9% same-store sales growth year-over-year in the second quarter, driven in part by online ordering, which Shipley introduced late last year and has continued rolling out to all its locations this year. (Online sales have increased 23% since the second quarter of 2022.)

In May, the company recently appointed industry veteran Flynn Dekker as CEO. He suceeds to Clifton Rutledge, who remains on the company's board of directors.

"Having joined the Shipley team at a pivotal point, I'm deeply encouraged by our track record of success, and we have big plans to take the brand to the next level in terms of sales and footprint," said Dekker. "The steps we're taking have improved our guest experience and increased sales for our existing franchisees and are attracting highly qualified new franchisees who want to be a part of the brand's success."

Shipley is actively recruiting franchisees in all markets, with a focus on increasing its presence in Colorado, Oklahoma, Florida and throughout the Southeast.

Founded in 1936 in Houston, Shipley Do-Nuts shops offer more than 60 varieties of freshly made “do-nuts,” including its iconic plain glazed, as well as coffee, kolaches, cinnamon rolls, bear claws, fritters  and more.