Houston, February 19, 2026
Houston’s Shipley Do-Nuts is making significant strides in its nationwide expansion by opening its first stores in Las Vegas and nearing 400 locations across the U.S. Founded during the Great Depression, the company has built a proud legacy of quality donuts and is leveraging a franchise model to fuel its growth. This expansion not only allows Shipley Do-Nuts to bring a taste of Texas to new markets but also offers opportunities for local entrepreneurs, thereby contributing to economic growth across the nation.
Houston Icon Shipley Do-Nuts Expands West, Nears 400 Locations
Houston’s beloved Shipley Do-Nuts is taking its celebrated taste of Texas to the national stage, embarking on a significant expansion that includes its first locations in Las Vegas. This strategic growth underscores the enduring power of entrepreneurial innovation originating in the Lone Star State and the robust potential of well-managed franchise models to drive economic prosperity across the nation.
The company, which began as a modest Houston wholesale bakery in 1936, is rapidly approaching the milestone of 400 U.S. sites, a testament to its long-standing commitment to quality and a business model that fosters small-business resilience and individual achievement. This expansion not only brings a taste of Houston to new markets but also creates valuable opportunities for local entrepreneurs and contributes to broader economic growth.
From Humble Beginnings to National Recognition
The story of Shipley Do-Nuts began during the Great Depression when Lawrence Shipley Sr. developed an original recipe for hand-cut, warm donuts, selling them for just five cents a dozen from his Houston bakery. The initial success, driven by word-of-mouth, led to the opening of the first retail storefront in the mid-1940s. This foundational period exemplifies the spirit of Texas TX entrepreneurs who, through dedication and a quality product, can build a lasting legacy. Lawrence Shipley Jr. and later Lawrence W. Shipley III continued to grow the family business, expanding its reach and maintaining its core values.
A Franchise Model Fueling Expansion and Opportunity
The company began franchising from its Houston headquarters, a decision that proved instrumental in its widespread growth. This franchise model empowers individual business owners, offering a proven framework for success while maintaining the brand’s cherished identity. In early 2021, Shipley Do-Nuts was acquired by Austin-based private equity firm Peak Rock Capital, which aimed for aggressive expansion. More recently, in the summer of 2025, the chain was acquired by Levine Leichtman Capital Partners. These investments have fueled a significant growth trajectory, aiming to exceed 600 locations by the end of 2026 and targeting another 200 new shops by the close of 2027.
The expansion strategy highlights how private investment can accelerate the growth of established businesses, leading to new opportunities for franchisees and stimulating local economies through job creation and increased commercial activity. This approach emphasizes the power of private enterprise in generating robust economic growth.
Reaching the Western Frontier: Las Vegas Debut
The latest announcement confirms Shipley Do-Nuts is expanding its national footprint with new multi-unit deals, prominently featuring its debut in Las Vegas. Three shops are planned for Las Vegas, marking the brand’s first locations in Nevada and its westernmost expansion to date. This move signifies not just geographic expansion but also a strategic entry into new, high-growth markets, bringing a taste of Houston small business success to a diverse customer base.
Beyond Las Vegas, Shipley Do-Nuts has also signed agreements for three new shops in the Atlanta metropolitan area, three additional locations in the Dallas-Fort Worth market, and five new shops to enhance its presence in New Orleans. The company also has agreements to enter new markets in Missouri and New Mexico. These developments showcase a confident expansion strategy, carefully selecting locations where entrepreneurial spirit can flourish.
Record Growth and Operational Excellence
Shipley Do-Nuts experienced significant growth in 2025, opening a record 35 new shops, which represents a 46% increase over the previous year’s expansion. This included entries into new states such as North Carolina and Virginia, alongside additional locations in Alabama, Florida, Georgia, Tennessee, and Texas. In 2024, the company opened 24 new locations. This impressive growth is attributed to a focus on operational efficiency, an expanded development team, and a continuous commitment to product quality and innovation.
The company has also focused on optimizing its business model, including efforts to reduce investment costs and improve profitability for its franchisees. By building “smaller, faster, cheaper” stores, Shipley Do-Nuts aims for a profitable model that offers a lower cost of entry for new franchisees, encouraging more individuals to embark on their entrepreneurial journey. The introduction of AI-powered online ordering and a “Hot Glaze Guarantee” systemwide further highlights the brand’s embrace of technological innovation to enhance the customer and franchisee experience.
A Taste of Home, Made with Quality
Central to Shipley Do-Nuts’ enduring appeal is its product. The company offers more than 60 varieties of donuts, maintaining the tradition of fresh, handmade-daily products that has been a hallmark since 1936. Beyond its signature hot glazed donuts, Shipley is also renowned for its kolaches, a Texas-favorite savory breakfast pastry available with various egg, meat, and cheese fillings. This dedication to quality and a diverse, beloved menu has cultivated a loyal customer base across generations, proving that a superior product remains the cornerstone of successful, lasting enterprises. The company’s expansion is not just about numbers; it’s about extending a cherished culinary tradition built on quality and personal connection, further solidifying its status as a key Houston TX business success story.
Conclusion
Shipley Do-Nuts’ continued expansion, particularly its entry into the Las Vegas market and its approach to nearly 400 U.S. locations, serves as a powerful example of how a commitment to quality, a robust franchise model, and strategic growth can lead to significant national success. This Houston-born enterprise continues to demonstrate the strength of entrepreneurial innovation and small-business resilience, offering valuable lessons for aspiring business owners and contributing to dynamic economic landscapes across America. We encourage our readers to support local businesses, both established and emerging, as they are the lifeblood of our communities and the drivers of enduring prosperity. Stay engaged in Houston’s economic future as we continue to highlight such inspiring achievements.
Key Features of Shipley Do-Nuts Expansion
| Feature | Details | Scope |
|---|---|---|
| First Las Vegas Shops | Three planned outlets. | Nationwide |
| Total U.S. Sites | Nearing 400 U.S. sites (more than 385 company-owned and franchised restaurants). | Nationwide |
| New Markets Entered in 2025 (e.g., NC, VA) | Opened 35 new shops in 2025, including locations in North Carolina and Virginia. | Nationwide |
| Franchise Model | Empowers individual business owners with a proven framework for success. | Nationwide |
| Product Offerings | Over 60 varieties of donuts and kolaches. | Nationwide |
Frequently Asked Questions
What is the latest news regarding Shipley Do-Nuts’ expansion?
Houston’s Shipley Do-Nuts is expanding, opening its first locations in Las Vegas.
How many U.S. sites is Shipley Do-Nuts nearing?
Shipley Do-Nuts is nearing 400 U.S. sites, with more than 385 company-owned and franchised restaurants across 13 states.
When was Shipley Do-Nuts founded and where?
Shipley Do-Nuts was founded in 1936 in Houston, Texas, by Lawrence Shipley Sr.
What types of products does Shipley Do-Nuts offer?
The company offers more than 60 varieties of donuts and is renowned for its kolaches, a Texas-favorite savory breakfast pastry.
What is Shipley Do-Nuts’ growth strategy?
Shipley Do-Nuts is aggressively expanding, with plans to exceed 600 locations by the end of 2026 and targeting another 200 new shops by the close of 2027. This includes optimizing its business model to reduce investment costs and improve profitability for franchisees.
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