Shipley Do-Nuts' Digital Innovations Drive Soaring Sales and Expansion Success
At Shipley Do-Nuts, one of the company’s most important initiatives is getting the entire 340+ location system on board with online ordering as well as the rewards program with an eye towards growing systemwide sales.
To prove to its many long-term franchisees that online ordering would be worth the effort to put in the infrastructure and learn a new way of providing guest service, Shipley started with a pilot test of OLO in its hometown market of Houston. Launching at just a couple of corporate locations, the operators and support center team were able to experience firsthand what the franchisee lift would be and then gather data to see if it really is worth it, and it sure was!
Based on a preliminary analysis, Shipley believes that the larger orders have been driven by the ease of use, hassle-free catering-size order capabilities, and guests taking advantage of the lower menu item pricing on ShipleyDonuts.com versus higher prices charged through third-party services like UberEATS and Door Dash.
In addition, the new loyalty program is the latest of many tech upgrades for the brand as it prepares to nearly double in size over the next five years. It has also launched a new website, rolled out online ordering and third-party delivery, and implemented a digital training platform. The company recently opened new territories for development in Indiana, Kansas, Kentucky, Missouri, and Ohio and is actively recruiting franchisees in Colorado, Oklahoma, Florida and throughout the Southeast.
As of September, Do-Happy Rewards had more than 40,000 members who are spending 60% more than non-loyalty members. Rewards members also visited about twice a month as the program rolled out.
Due to the positive results of OLO and the Do-Happy Rewards program, Shipley has reflected on the various store models and design elements of locations finding success. They quickly discovered the stores without a drive-thru (inline) are experiencing comparable sales numbers, the top 25% average unit volume sitting at $1,176,633. This leads Shipley to believe they can continue to be flexible in our real estate searches while still finding success in existing and new markets.
While Shipley was not a pioneer in offering online ordering or rewards programs, they’ve proven that they can still attract new customers and increase sales – even after 87 years in business – and improve their business model for potential franchisees as the company continues growing in new and existing markets.
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