From its humble beginnings during the waning days of the Great Depression to its status today as a beloved Southern doughnut empire, Shipley Do‑Nuts has been woven into the very fabric of Texas culture. Here’s a look at how a single Houston bakery gave rise to one of the Lonestar State’s sweetest success stories.
It was announced on July 28th, 2025 that Levine Leichtman Capital Partners (“LLCP”) has teamed up with Shipley Do‑Nuts’ existing management—led by CEO Flynn Dekker—to acquire the 90‑year‑old, Houston‑based brand from Peak Rock Capital. Financial terms were not disclosed.
With over 375 locations in 14 states, Shipley is America’s largest handcrafted donut and kolache chain, boasting more than 60 varieties made fresh daily. LLCP’s Managing Partners Matthew Frankel and Greg Flaster praised the brand’s robust growth and loyal customer base, and plan to leverage their franchise‑investment expertise to accelerate unit expansion, drive same‑store sales, and support franchisees—all while preserving Shipley’s commitment to its signature recipes and Houston headquarters.
1. A Recipe Born in Hard Times
In 1936, Lawrence Shipley Sr.––then a young entrepreneur in Houston––crafted what he called a “gourmet recipe for Do‑Nuts.” Working out of a small bakery on Crockett Street, Shipley hand‑cut each doughnut and sold them fresh and warm for just five cents a dozen. His simple credo—“When they bite into that hot doughnut, it will bring them back every time”—laid the groundwork for a local phenomenon.
2. From Wholesale to Retail Stardom
Initially, Shipley Do‑Nuts operated strictly as a wholesale supplier to grocers and cafeterias. But by the mid‑1940s, booming demand in Houston compelled the Shipley family to open their first retail counter, selling doughnuts individually throughout the day. Customers flocked to experience that trademark pillowy softness and shine of warm glaze—a novelty at the time.
3. Anchoring Houston’s Doughnut Scene
Throughout the 1950s and ’60s, the chain steadily grew within Houston. Notably, the North Main location (opened in 1950) remains the oldest continuously operating Shipley store in the country. As the city expanded, Shipley Do‑Nuts followed, planting roots in neighborhoods from the Heights to the Gulf Freeway corridor.
4. Embracing – and Celebrating – Texas Culture
Shipley’s became more than just a doughnut shop; it became a Texas institution. Over generations, it forged partnerships with local favorites like the Houston Astros and University of Houston, offering free doughnuts at ballgames and campus events. In 2024, the Texas Historical Commission officially designated Shipley Do‑Nuts as a “Texas Treasure,” recognizing its contribution to the state’s economic and cultural heritage.
5. Southern Expansion—and Houston Roots
While Shipley Do‑Nuts ventured beyond Texas—opening franchises across the South in states like Louisiana, Arkansas, and Florida—the company never lost sight of its Houston headquarters. Even amid periods of private‑equity ownership and rapid multi‑state growth, leadership has pledged to “Houstonize” each new location, ensuring that every store, from Tulsa to Tampa, carries a bit of Texan spirit.
In 2021, Peak Rock Capital acquired Shipley from its previous owners, backing a management‑led expansion strategy. Under Peak Rock’s stewardship, Shipley grew from roughly 300 to nearly 380 locations, delivered 18 consecutive quarters of same‑store sales growth, and doubled system‑wide revenues by investing heavily in staffing, technology, and operational improvements.
As Shipley Do‑Nuts starts its next chapter with Levine Leichtman Capital Partners, the hope is that essence of its Texas heritage will remain the driving force behind every fresh‑made doughnut and kolache. By leveraging LLCP’s franchise expertise and growth capital, Shipley is poised to plant new roots from coast to coast—bringing that signature Houston hospitality, time‑honored recipes, and small‑town, hand‑cut quality to markets far beyond its original neighborhood.
