Iconic Texas brand added over 80 units to development pipeline; marks 14 consecutive quarters of positive sales
HOUSTON, Aug. 14, 2024 /PRNewswire/ -- Houston-based Shipley Do-Nuts, one of the nation's largest and fastest-growing donut brands, amped up growth through the first half of 2024, increasing its development pipeline by 33%, opening eight new stores and posting its 14th consecutive quarter of positive same-store sales.
Bolstered by an expanded development team, Shipley accelerated its rate of store openings through Q2 and is projected to gain steam in the second half of the year. More than double the number of additional locations are underway and scheduled to open before Dec. 31, including in Colorado, Maryland and – for the first time – North Carolina and Virginia.
The company also shared an updated FDD in Q2 that highlighted lower investment costs, higher Average Unit Volumes and EBITDA profitability projected at 18%-20%. As a result, the brand closed 11 multi-unit development deals through Q2 2024, a significant increase over last year.
"With our faster development cycle, new stores now in the pipeline and some major multi-unit deals in the works, we are on pace to meet our aggressive growth goals," said Shipley Senior Vice President of Franchise Development Keith Sizemore. "We're seeing tenured franchisees growing again while also attracting new franchisees to our system with our updated business model, proven profitability and product line that is perfect for multi-unit operators who want to diversify their portfolios."
For the first time in company history, Shipley is leaning into product innovation to drive engagement and increase sales, which were positive despite industrywide softness through Q2. Shipley introduced its first new limited-time product in decades, the POPTASTIC donut featuring freeze-dried SKITTLES®, in January, followed by the OREO® Cookies & Dream donut in April. Most recently, the early test of its Q3 promotion, the breakfast Egg & Cheese Kolache line, far exceeded expectations and showed it will be Shipley's largest limited-time offer in company history. Early access to new products and promotions also drove new Do-Happy Rewards loyalty program signups, doubling membership from January through June.
Looking forward, Shipley is focusing on growing in Georgia, with a potential for 90 units in the Atlanta area, plus opportunities in Savannah, Augusta and Columbus. North Carolina is another high-growth market, with 95 potential units for development in Raleigh, Charlotte, Greensboro and Winston-Salem. Shipley also has available territories throughout the Southeast, the Mid-South and the Midwest. For more information, visit ownashipleydonuts.com.
ABOUT SHIPLEY DO-NUTS
Founded in 1936, Houston-based Shipley Do-Nuts is one of the nation's oldest and largest donut brands, with more than 350 company-owned and franchised restaurants across 12 states, serving up its famous donuts, coffee and kolaches to generations of guests. Shipley is ranked No. 110 on Entrepreneur magazine's Franchise 500® 2024 list and No. 1 in its category and is No. 147 on the Technomic 2024 Top 500. For franchising information, visit ownashipleydonuts.com. Follow Shipley on Instagram and Facebook @ShipleyDonuts and sign up for Do-Happy Rewards at ShipleyDonuts.com/rewards to unlock free donuts, discounted coffee, exclusive merchandise and more.
Media Contact: Ashley Lennington, SPM Communications [email protected] 214-379-7000
SOURCE Shipley Do-Nuts
Originally published at https://www.prnewswire.com/news-releases/shipley-do-nuts-accelerates-growth-with-new-signings-openings-and-product-innovation-302221961.html
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