A California private equity firm just bought this popular Texas donut shop
A California private equity firm just bought a Texas institution.
Levine Leichtman Capital Partners just bought Houston-based Shipley Do-Nuts, according to a news release. The price has not been disclosed. LLCP’s porfolio also includes Nothing Bundt Cake.
This 89-year old donut, kolache and coffee shop began in Houston and was family-owned up until 2021. In these past four years, Peak Rock, an Austin-based private equity firm, acquired the donut brand and helped the franchise expand to five more states and launch around 75 more stores.
Shipley Do-Nuts operates a total of 388 stores across 14 states. Texas boasts the greatest number of Shipley stores, with 324 locations that are both company-owned and franchises.
Here’s why the company has been sold and what customers should know.
Why did Shipley Do-Nuts get sold?
The sale to California-based Levine Leichtman Capital Partners, who “are much better suited for our business and where were at in our life cycle,” was the right move for all parties, Shipley CEO Flynn Dekker told the Houston Chronicle.
Right now Shipley’s is in 14 states:
- Alabama
- Arkansas
- Colorado
- Florida
- Georgia
- Louisiana
- Maryland
- Mississippi
- North Carolina
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Virginia
There are currently no Shipley Do-Nut locations in California
According to another news release, Peak Rock reported that Shipley marked its 18th consecutive quarter of positive sales growth. Shipley is on track to open an additional 40 shops by the end of 2025, and plans to open shops in New Mexico and Missouri.
“It has been an outstanding experience working alongside the Shipley team,” Peak Rock Managing Director Michael Graham said in a news release. “The Company has excelled through our investment and built a strong foundation to capitalize on future growth.”
For those who think ownership by a California firm would “California our Texas,” Dekker told the Chronicle earlier this year that wasn’t the case.
“We’ve made those out-of-market locations more Houston,” Dekker said. “Kolaches aren’t a thing in North Carolina, Missouri; we’re bringing that Houston culture to those markets. We’re more accused of Houstonizing.”
Will anything change for Shipley Do-Nuts customers?
Nothing will change for Shipley Do-Nut customers, Dekker said in the news release.
“We are committed to supporting our franchisees’ businesses and serving our customers the world’s greatest donut as we continue to introduce our iconic brand to more and more communities across the nation,” he said.
Customers can still enjoy a classic iced cake donut for just $1.49, or a whole dozen for $13.99. If you prefer a savory treat, Shipley’s kolaches are $3.49. The restaurant also sells cinnamon rolls, beignets, fritters and coffee cake. To wash it all down, a cup of coffee is as cheap as $2.69.
Where can you find Shipley Do-Nuts in DFW?
There are more than 20 Shipley’s locations in the DFW metroplex.
To find a store closest to you, you can look at the store located on Shipley’s website here.