A brand doesn't stay the country's largest handmade donut and kolache player for nearly nine decades by standing still. Heading into its 90th anniversary this September, Shipley Donuts just posted one of its strongest growth stretches yet—four franchise agreements, three new-market openings, a fresh catering channel, and a first-of-its-kind nonprofit partnership, all in the first half of 2026.
For franchise developers and QSR operators watching the breakfast daypart, the Houston-based chain's first-half scorecard is a useful signal of where legacy comfort-food brands are finding runway.
Franchise Development: 9 New Shops Across Four States
During the second quarter, Shipley signed four franchise agreements to develop nine shops—spreading its footprint deeper into the South, Southeast and Midwest. The deals include:
- Three shops in Cincinnati, Ohio, with Kolache Co. LLC
- Two shops in Raleigh, North Carolina, with Plexus Raleigh LLC
- Three shops in Stillwater, Oklahoma, with Dough Pokes LLC
- A landmark first nonprofit franchise partnership in South Dallas, Texas
That nonprofit deal is the headline within the headline. Building on a nearly 90-year legacy of community impact, it marks the brand's first franchise partnership with a nonprofit operator—an emerging model that pairs unit economics with mission-driven local investment.
New Markets: El Paso, Bossier City and Vienna
Growth in the first half of the year wasn't just on paper. Shipley opened its first shop in El Paso, Texas, in March, followed by new-market openings in Bossier City, Louisiana, in May and Vienna, Virginia, in June. The Midwest and mid-Atlantic pushes underscore a brand deliberately extending beyond its Southern stronghold.
"The first half of 2026 has been one of the strongest growth periods for Shipley Donuts, bringing together franchise development, thoughtful menu innovation and national recognition," said Flynn Dekker, CEO of Shipley Donuts. "We're especially proud of launching our first nonprofit franchise partnership, expanding into the Midwest and continuing to build momentum across the Southeast. These milestones reflect the strength of our leadership team's strategic vision and our ability to connect with entrepreneurs nationwide."
Menu Innovation: Catering Platform and Mini Kolaches
Menu innovation stayed central to the guest experience. In Q2, Shipley launched a dedicated online catering platform built for easy ordering across any group size or occasion, with custom bundles, coffee and exclusive mini kolaches. Catering orders are now available for pickup or delivery at more than 350 Shipley locations.
The bite-sized kolaches are a smart product story: first introduced as a limited-time item in late Q1, they earned a permanent spot on the catering menu almost immediately—giving meeting planners, families and event hosts a convenient savory option for group occasions.
The brand kept its marketing calendar busy, too. Mother's Day brought limited-time "MOM" letter-shaped donuts, and June's National Donut Month saw the return of "Free Donut Fridays"—a free glazed donut with any purchase—plus a limited-edition Shipley hat for rewards members who completed a June visit challenge.
National Recognition
The momentum earned industry validation. Shipley landed at No. 77 on the 2026 Fast Casual Top 100 Movers & Shakers list—its third consecutive appearance—and No. 142 on the 2026 Technomic Top 500 Chain Restaurants list, its second straight year on that ranking. The brand is also No. 134 on Entrepreneur magazine's Franchise 500® 2026 list and No. 1 in its category.
Why It Matters
For franchise operators and QSR investors, Shipley's first half is a case study in how a heritage brand compounds growth without chasing gimmicks. A few practical takeaways:
- The nonprofit franchise model is worth watching. Pairing unit economics with a mission-driven operator can unlock new capital sources, community goodwill and site opportunities—especially in underserved markets like South Dallas.
- Catering is a margin lever, not an afterthought. Standing up a dedicated online catering platform across 350+ locations turns the breakfast daypart into a group-order revenue stream that meeting planners and institutional buyers can tap. The fast-tracked mini kolache proves how quickly an LTO can become a permanent group-order staple.
- Multi-unit deals signal confidence. Three-shop and two-shop agreements—rather than single-unit signings—point to operators betting on repeatable economics in new geographies.
With more than 390 franchised and company-owned restaurants across 13 states and a 90th anniversary on the horizon, Shipley is proving that comfort-food classics still have serious room to run when growth, menu and community strategy move together.
Shipley also recently put its brand behind childhood-hunger relief—see our coverage of the Shipley Donuts Donut Dash. For another QSR pushing deeper into a key region, check out Chicken Salad Chick's North Carolina expansion.
Exploring a franchise opportunity across the South, Southeast or Midwest? Learn more at ownashipleydonuts.com. Are legacy QSR brands the smartest franchise bet in 2026? Weigh in with a comment below.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine’s “Top 40 Under 40” for founding American Wholesale Floral. Politz is also the founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
