Shipley Do-Nuts, which has 340 locations in 12 states, has opened franchise development opportunities in Indiana, Kansas, Kentucky, Missouri and Ohio and is rolling out incentives to hook qualified Midwest franchise candidates. Single-unit franchisees opening shops within 14 months of executing their agreements will pay reduced royalties of 1% of gross receipts for a year. Multi-unit franchisees, who open more than one shop within a specified time frame, will get a reduction in royalties for a year and 50% off the franchise fee, according to Shipley Do-Nuts CEO Flynn Dekker.
“Opening up territories in the Midwest and offering incentives for potential new franchisees is part of our strategic growth plan to expand the brand nationwide, tackling one region at a time to build awareness and density before expanding further,” he said in a company press release. “Shipley has been extremely well-received in new states such as Maryland and Georgia, which we opened earlier this year. This is a great opportunity for potential franchisees to bring the brand to lucrative markets like Cincinnati, St. Louis, Kansas City, Indianapolis and many more throughout the Midwest.”
Houston-based Shipley has been experiencing double-digit same-store sales growth, up 10.9% year-over-year in Q2 2023. An upgraded website has spurred online sales to 23% over last year, and Shipley recently launched its first loyalty program, Shipley Do-Happy Rewards, Decker said in the release.
To support its franchisees as it grows, Shipley has implemented several technological enhancements, including an updated POS system and business intelligence tools. It is also testing a kitchen display system to improve the speed of service, with wait times decreasing by an average of 46%. Additionally, Shipley recently launched a digital training program.
The chain hopes to nearly double in size over the next five years. In addition to opening up the Midwest, Shipley is recruiting franchisees in Colorado, Oklahoma, Arkansas, Florida and throughout the Southeast.