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Shipley Do-Nuts focusing on digital sales growth following strong first quarter

The Texan bakery café chain has reported an increase in digital sales in the first three months of 2023 and is on track to open 20 new stores by the end of the year

Shipley Do-Nuts is projecting year-on-year double-unit growth in 2023 | Photo credit: Shipley Do-Nuts


Shipley Do-Nuts has increased its focus on digital sales channels, including pre-ordering and pick-up, in a bid to boost customer convenience. 

The Texas-based coffee chain reported an increase in digital sales in the first three months of this year, with more customers using its new online ordering system launched in 2022. 

Shipley Do-Nuts said 80% of its sales operations have successfully been enrolled onto its new system, which offers online and app-based pre-ordering for in-store or drive-thru pick-up as well as delivery. 

The bakery café chain will also introduce a new loyalty programme across all its stores in 2023, following a strong trial in its corporate-owned Houston outlets last year. Shipley Do-Nuts added 27 additional locations to the programme in its first quarter. 

Shipley Do-Nuts opened five new stores in its first quarter, including its first outlets in Maryland and Georgia. 

With nearly 350 stores across the US, the bakery café chain also expects to open its first Virginia outlet in 2023 and is set to expand its presence in Colorado following a 16-unit agreement with quick-service franchise group Meisternuts LLC. 

Overall, Shipley Do-Nuts is projecting year-on-year double-unit growth in 2023. 

The Texas-based company opened 14 new outlets in 2022 and signed 11 multi-unit franchise agreements which it said will add nearly 100 sites to its new store pipeline. 

“We have hit the ground running in Q1 and remain committed to meeting the growing demand for our delicious donuts across the country. As we continue to expand our brand into new markets, we have increased our focus on innovation and technology that has allowed us to grow our digital sales and improve the customer experience,” said Clifton Rutledge, CEO, Shipley Do-Nuts. 

World Coffee Portal research forecasts the total branded US coffee shop market will exceed 41,900 outlets by 2027, led by coffee-focused chains.   

The food-focused segment, led by Panera Bread with more than 2,170 stores, currently accounts for 18% of the total market. 

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