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Shipley Do-Nuts

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Shipley Do-Nuts
Company typePrivate
Industrydoughnut shops
coffeehouse
Founded1936; 88 years ago (1936)
FounderLawrence Shipley
HeadquartersHouston, Texas, United States
Number of locations
325 (2021)
Key people
  • Flynn Dekker (CEO)
  • Brad Reynolds (CFO)
Products
RevenueUS$164 million
OwnerPeak Rock Capital
Number of employees
3,000 (2021)
Websiteshipleydonuts.com

Shipley Do-Nuts (colloquially known as Shipley's) is an American doughnut company and coffeehouse chain with more than 300 franchised stores in the Southern United States, including Texas,[1] Oklahoma,[2] Louisiana,[1] Arkansas,[1] Tennessee,[1] Mississippi,[1] Florida,[3] Alabama,[4] and as of 2018, Colorado.[5] Its headquarters are located in Northside, Houston, Texas.[1][6]

History

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Shipley Do-Nuts began in 1936 by Lawrence Shipley. When Shipley first created his recipe, his doughnuts were cut by hand, served warm during the day, and sold for $0.05 (equivalent to $1.1 in 2023) per dozen. Shipley and his family worked at their original bakery on 1417 Crockett Street in Houston, Texas. Shipley's goal was to continue selling hot doughnuts to customers. He said, "When they bite into that hot doughnut, it will bring them back every time".[7]

Lawrence Shipley Jr. took over the business, and later still, Lawrence W. Shipley III became the president of the company. Today, the chain's headquarters remain in Houston, Texas, on 5200 North Main.

Growth

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Shipley Do-Nuts Sign used as advertisements on freeways

During the late 2010s, Shipley Do-Nuts began a phase of rapid expansion. Shipley Do-Nuts' locations are based primarily in the Southern United States, but their imprint has been shifting further out. In 2018 the company debuted stores in Florida, Colorado and Oklahoma.[2] In Florida, the first location opened in Bradenton.[3] That year, they also opened the first Colorado location in Aurora in the Denver area.[5][8] The second Colorado location opened in 2019 in Fountain in the Colorado Springs area.

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The current company logo is derived from the original store's sign that consisted of a large, circular doughnut figure to inform customers they sold doughnuts. Since the original store began, the doughnut-shaped logo has been updated various time, but constantly kept the same theme. In its different updates, elements such as font, brightness, shading and sizing have been slightly changed overtime. In the mid-2010s, the company attempted to implement an alternate logo, but it was short-lived.[9]

Affiliations

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Shipley Do-Nuts advertisement in Minute Maid Park

Shipley Do-Nuts has sponsored and maintained affiliations with the Houston Astros and University of Houston.[10][11]

Notable endorsements

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Community involvement

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The company has partnered with the Salvation Army to use a portion of sales on National Doughnut Day for charity.[14] Starting in early 2015, Shipley Do-Nuts hosted an annual Shipley Do-Nut Dash fun run to benefit the Kids’ Meals Houston charity. The event raised funds to end hunger among pre-schoolers living in poverty in Houston and the surrounding area.[15]

Controversy and criticism

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2015 pregnancy discrimination lawsuit

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In 2015, the Equal Employment Opportunity Commission (EEOC), charged a Shipley Do-Nuts franchisee for violating federal anti-discrimination laws when it forced an employee to take unpaid leave. The franchise owner/general manager prohibited the employee from working at the doughnut shop unless she provided documentation from a doctor that her pregnancy was not "high-risk". When the employee was unable to provide formal evidence of the doctor's release, she was fired, in violation of the Pregnancy Discrimination Act, part of Title VII of the Civil Rights Act of 1964. On 16 November 2015, a federal judge signed the consent decree that settled the suit which provided non-monetary relief.[16]

2017 overtime lawsuit

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In April 2017, a lawsuit was filed against Shipley Do-Nuts contending that their employees were not getting overtime pay that they earned. The suit alleged that "All plaintiffs regularly worked over forty hours per week...Shipley's knew or reasonably should have known that plaintiffs worked in excess of forty hours per workweek."[17] One employee, Juan Sanchez, claimed that he "put in 40–60 hours in a week with minimal breaks". However, he believed that Shipley Do-Nuts disregarded the overage and paid him for only 40 hours of work. The suit included claims that Shipley Do-Nuts did not maintain accurate records, failed to pay workers minimum wage, and did not pay overtime. Shipley Do-Nuts stated, "The claims by the former employees named in the lawsuit are unfounded, completely without merit and no more than a retaliation lawsuit against Shipley Do-Nuts and Lawrence Shipley III for their recent termination."[17]

Legacy

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In 2018 Houston artist Donkee Boy created a Shipley Do-Nuts mural in a location along the Katy Freeway.[18]

See also

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References

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  1. ^ a b c d e f "Shipley Do-Nuts - About". Shipley Do-Nuts. 2019. Archived from the original on 24 February 2020. Retrieved 24 February 2020. Lawrence Jr. worked in the business all of his life, continuing his father's vision and making Shipley Do-Nuts the successful business it is today. He expanded the company to more than 190 stores around the nation in Alabama, Arkansas, Louisiana, Mississippi, Tennessee, and Texas.
  2. ^ a b Hall, Abigail (3 October 2019). "Shipley Do-Nuts to open the first shop in Norman". The Oklahoma Daily. ISSN 0030-171X. Archived from the original on 17 February 2020. Retrieved 26 February 2020. "We are really excited about being in Oklahoma, and especially in Norman, and we look forward to meeting everyone in the community and them getting to know Shipley Do-Nuts," said Terry Sutton, president of the Oklahoma Donut Company and owner and area developer for Shipley Do-Nuts, in the report.
  3. ^ a b Callihan, Ryan (5 July 2018). "These Texas-based doughnuts made their Florida debut. Here's where to get them in Bradenton". The Bradenton Herald. Archived from the original on 14 February 2019. Retrieved 26 February 2020. The doughnut shop at 6571 State Road 70 E. in Bradenton marks the franchise's Florida debut
  4. ^ "15 Shipley Do-Nuts facts you probably didn't know". KTRK-TV. Houston, Texas: ABC Owned Television Stations. 19 November 2017. Archived from the original on 3 August 2018. Retrieved 26 February 2020. The company is still headquartered in Houston but has more than 300 stores in eight states: Alabama, Arkansas, Colorado, Georgia, Louisiana, Mississippi, Tennessee, and Texas.
  5. ^ a b Gonzalez, Susan (22 May 2018). "Colorado is getting another doughnut store and Texans everywhere are screaming". The Denver Post. ISSN 1930-2193. Archived from the original on 23 May 2018. Retrieved 24 February 2020. Colorado will be welcoming another doughnut joint to its burgeoning pastry scene as Houston-based Shipley Do-Nuts expands to the Centennial State, according to a news release on the company's website.
  6. ^ "The Greater Northside Management District - Our Boundaries". The Greater Northside Management District. 2020. Archived from the original on 16 April 2019. Retrieved 26 February 2020. Greater Northside Management District includes 24 square miles north of downtown Houston.
  7. ^ "Shipley History - Shipley Do-Nut Flour & Supply Co". MyShipleyDonuts. 2019. Archived from the original on 8 November 2019. Retrieved 25 February 2020. People would come from miles around to sample the nectar of the sumptuous hot glazed Do-Nuts. Serving them hot was a goal of the elder Shipley. Lawrence Shipley, Sr. once said, "When they bite into that hot donut, it will bring them back every time."
  8. ^ Laden, Rich (21 April 2017). "Texas doughnut chain expanding into Colorado Springs with as many as four locations". The Gazette. Archived from the original on 1 July 2019. Retrieved 26 February 2020. Shipley Do-Nuts, a popular family-owned chain based in Texas, is coming to Colorado Springs as soon as this year or in 2018. The company said this week that 58 franchised locations are planned around Colorado, starting in Denver this year.
  9. ^ Craig Hlavaty (November 16, 2017). "Shipley Do-Nuts celebrating over 80 years of donut-slinging in Houston". Houston Chronicle. Retrieved June 15, 2020.
  10. ^ "FREE DONUTS: Astros offering yummy treat at Shipley today". 16 October 2019.
  11. ^ "Shipley's Loves the Cougars!". Shipley Do-Nuts. Archived from the original on August 25, 2016.
  12. ^ Baldwin, Chris (6 August 2018). "Travis Scott Turns Kylie Jenner On To Shipley's Donuts in Whirlwind Houston Visit". Paper City. Retrieved 24 February 2023.
  13. ^ Ferrell, Georgie (8 March 2020). "Lizzo and a Houston Artist's Shared Love of Shipley's Do-Nuts Leads to Sweetest Painting Ever". Paper City. Retrieved 24 February 2023.
  14. ^ "Shipley Do-Nuts to Partner with the Salvation Army for National Do-Nut Day on June 1st" (Press release).
  15. ^ "About: Shipley Do-Nuts Dash". Shipley Do-Nuts. 2020. Archived from the original on 23 August 2019. Retrieved 26 February 2020. The inaugural Shipley Do-Nuts Dash was held on February 28, 2015. Through the generous support of our dashers and sponsors, we were able to present Kids' Meals with a check for $10,000, to help fight poverty among underprivileged children in the Houston area.
  16. ^ "Katy-Area Shipley's Donuts Franchise Pays $45,000 To Settle EEOC Pregnancy Discrimination Suit" (Press release). Houston, Texas. Equal Employment Opportunity Commission. 17 November 2015. Archived from the original on 13 July 2019. Retrieved 26 February 2020. HOUSTON - D&S Shipley Donuts, dba Shipley's Donuts, a Katy, Texas-area franchise, will pay $45,000 (equivalent to $57,844 in 2023) and furnish other relief to settle a pregnancy discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.
  17. ^ a b Blakinger, Keri (7 April 2017). "Shipley Do-Nuts sprinkled with federal lawsuit". Houston Chronicle. ISSN 1074-7109. Archived from the original on 8 April 2017. Retrieved 26 February 2020. Four former Shipley employees, including one who started at the company back in 1988, are seeking class action status for the suit filed Wednesday in federal court. "All plaintiffs regularly worked over forty hours per week," the suit alleges. "Shipley's knew or reasonably should have known that plaintiffs worked in excess of forty hours per workweek."
  18. ^ "Local artist unveils first Shipley's mural in Houston". KTRK-TV. Houston, Texas: ABC Owned Television Stations. 16 November 2018. Archived from the original on 22 December 2019. Retrieved 26 February 2020. HOUSTON, Texas (KTRK) -- If you're searching for a new Instagram-worthy pit stop, there is a new mural in town. Artist Donkee Boy just unveiled this first of its kind mural as a tribute to Shipley Donuts.
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