Houston's treasured confectionery establishment, Shipley Do-Nuts, is now under the ownership of Levine Leichtman Capital Partners (LLCP), a Beverly Hills-based private equity firm, a transaction that sees the nearly 90-year-old brand poised for a new phase of expansion. The deal, whose financial specifics were not revealed, promises to inject fresh capital into the business, facilitating Shipley's penetration into new markets such as Missouri and New Mexico in the impending months.
In an evolution that's been boiling since its 1936 inception when Lawrence Shipley first tempted Houston with his glazed doughnuts, the brand, under prior caretaker Peak Rock Capital, let the dough rise into what is now more than 380 stores sprinkled over 14 states, according to KHOU. Flynn Dekker, the CEO of Shipley, acknowledged Peak Rock's instrumental role in accelerating the brand's momentum—an era that saw the company more than double its systemwide sales and revel in an unbroken string of 18 quarters of same-store sales growth.
Shipley's credibility as a Houston mainstay isn't just due to its sweet offerings—kolaches and klobasniky, those savory Czech pastries, have been tickling local palates since their 1990s menu debut, currently accounting for a voluminous around 40% of sales in Houston-area stores, Flynn Dekker told the Houston Chronicle in an interview.
As Shipley Do-Nuts works to strengthen its presence in the southeastern U.S., it continues to stay true to its Houston roots. The brand is shifting from a family-run Texas favorite to a major franchise. According to CEO Flynn Dekker, the deal reflects ongoing growth plans and strong interest from several serious buyers. LLCP stood out as the best fit, thanks to its deep understanding of franchise restaurant businesses.
