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Krispy Kreme (temporarily?) leaving Houston

Discussion in 'BBS Hangout' started by surrender, Feb 10, 2006.

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  1. rubytuesday

    rubytuesday Contributing Member

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    guess where i went on saturday morning? shipleys on main!! :D
     
  2. Pole

    Pole Houston Rockets--Tilman Fertitta's latest mess.

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    After further thought, I'll give two more kudos to Krispy Kreme. One, they are more consistent than Shipleys.....although I'd probably still rather have a poor, but fresh Shipleys over a fresh KK. Also, KK's shelf life is MUCH longer. A shipley's is good for four or five hours while a KK can last for several days.
     
  3. Rocketman95

    Rocketman95 Hangout Boy

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    I dunno about that. Everytime I go to California to see my sister, I have to take a dozen chocolate filled. They stay pretty good for a few days.
     
  4. kaleidosky

    kaleidosky Your Tweety Bird dance just cost us a run

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    i tend to agree. Shipley's are by far my favorite donuts. I'd give em a little longer...they're DECENT 1-day-old, but not great anymore. I'd probably take even a 1-day-old KK over Ship.

    So yeah, same-day = Ship. After that, KK for me.

    long live Shipley's though, cause I can take down enough in a day to satisfy me!
     
  5. oomp

    oomp Contributing Member

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    Great Shipley's story in today's paper.

    http://www.chron.com/disp/story.mpl/front/3668759.html


    Feb. 19, 2006, 1:47AM
    A fresh recipe for 70 years
    Family-owned Shipley Do-nut company quietly maintains its loyal following by sticking to what it does best


    By PURVA PATEL
    Copyright 2006 Houston Chronicle

    High on the wall in Lawrence W. Shipley III's office is a framed newspaper article announcing Krispy Kreme's upcoming exit from the Houston market.

    Shipley, who runs the Shipley Do-nuts company his grandfather founded in 1936, says the day marked high sales for his company.

    "Whenever our industry, doughnuts, makes the front page of the business section, it is worthy of some wall time," he said. "And yes, we had record sales that weekend."

    It is also perhaps a testament to the longevity of Shipley Do-nuts.

    The doughnut chain has been around 70 years, started in Houston and has about 200 shops scattered throughout six southern states, in what the company likes to refer to as the "doughnut belt."

    They've become part of the roadside woodwork and have garnered little attention as the company grew from a wholesale business to a massive retail chain. By comparison, Krispy Kreme, whose six shops in the Houston area lasted only eight years, garnered much more fanfare when it both entered and left the Houston market.

    The family-owned company has endured in a changing market by sticking to what it knows and catering to its franchisees, according to industry experts and franchisees.

    All in the mix
    The Shipley Do-nuts brand isn't lost on anyone who grew up in Houston, said Michael Shine, president of the Texas Food Group, a restaurant advisory company.

    "They continue to do one thing right all these years," Shine said. "In this industry you get in trouble when you try to be too many things to too many people. They've been able to keep it simple and concentrate on one thing and make sure they do it well."

    One thing that hasn't changed much is the company's doughnut mix.

    It has barely been tweaked since Arkansas native Lawrence Shipley Sr. came up with the mix in the 1930s.

    He sold the then-hand cut treats wholesale to grocers and opened his first retail store in the 1940s. His son, Lawrence "Bud" Shipley Jr. later joined the business and helped spur production by setting up the company's 140,000 square foot warehouse on Main Street, where the mix is manufactured and other supplies are distributed. The same mix is used for the kolaches the stores sell as well.

    Shipley Do-nuts Flour and Supply Co. ships each store everything it needs — the mix, icings, fillings, bags, boxes, cups, napkins, even toilet paper — to make and sell doughnuts, kolaches and other goods. Franchisees advertise independently, although over the years Shipley Franchise Co. has done some advertising for free for the franchisees.

    Until Lawrence Shipley Jr. died last year, his son Lawrence W. Shipley III, 38, spent his time learning the business and served as vice president. Now as president he hopes to steadily grow the chain in the South by sticking to the formula.

    "We have a loyal following, so as justice to our customers who love our product, we don't let the market and fads dictate what we do next," Shipley said.

    Krispy Kreme blamed low earnings in previous years on the low-carb craze and even planned for a low-sugar doughnut. Dunkin' Donuts responded to the popularity of Starbucks by introducing specialty drinks.

    But Shipley Do-nuts has never ventured far beyond doughnuts and kolaches or experimented with its coffee offerings. Just as in the past, the shops open early and start making fresh doughnuts during the predawn hours.

    "We're not a coffee shop or a bagel shop. We sell doughnuts. Today our best-selling item is still the hot glazed doughnut," Shipley said, adding that the anti-carb diets haven't hurt sales. "We try to just do what we always do, and do it best."


    Happy franchisees
    Shipley continuously reviews sites for stores. He receives about 100 applications for new franchises every year, he said. He looks for voids in the market created by urban sprawl, and then for sites that see a lot of traffic on the morning drive, with good visibility.

    A typical shop requires eight to 12 people to run, he said.

    To survive for so long, a profitable company must have happy franchisees, said Steve Hockett, president of FranChoice, a Minnesota company that matches potential franchisees with companies.

    Shipley knew what it had to do to make the franchisees successful — demand consistency, provide support and build a strong brand, Hockett said.

    "That has a long-term impact," he said. "If the franchisees are making money, then they are very happy. If franchisees can't make money, it's hard to make money in any market with any concept. The Shipley franchisees may not agree with everything done by the Shipleys; they sure must like the business if it's profitable."

    Harold Longhofer bought his first franchise in 1976 in Kerrville after tiring of the corporate world. He had a store in San Antonio before moving to Houston in 1983 and opening one here.

    "I've never regretted it," he said. "If you've been in this business for 30 years and you've never had a problem and always had support, it's hard to beat that kind of relationship."

    Longhofer, 63, notes that the Shipley family has always been quick to respond to his needs, sending technicians, supplies or extra help whenever he needed it. But what he likes best, he said, is that the company feels small despite its size.

    "The company is family owned. It's not on the stock market, and they open stores very slowly. The Shipley family has always wanted all the stores to do good and spaced them accordingly, so everybody does well," he said. "It's retained that family touch."

    purva.patel@chron.com
     
  6. Two Sandwiches

    Two Sandwiches Contributing Member

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    Has anyone ever had a Tim Horton's donut? They're very good. I'd put them right up with Shipley's and Krispy Kream, although I haven't had a Shipley's in many years.....


    I think I remember Tim Horton's and Shipley's tasting nearly the same.
     
  7. chow_yun_fat

    chow_yun_fat Contributing Member

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    four pages of donut goodness. :eek: you houstonians do love your donuts. i dont even know how to classify myself. since the majority of my life is here in houston, should i start loving donuts too?

    here's a question for you donut lovers,
    does 12 donut holes = 1 donut?
     
  8. pradaxpimp

    pradaxpimp Contributing Member

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    KK is so much better fresh. Way better than Shipleys. Thats my opinion.
     
  9. halfbreed

    halfbreed Contributing Member

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    shipley's > krispy kreme
     
  10. luckystrikes

    luckystrikes Member

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    ditto
     
  11. AMS

    AMS Contributing Member

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    Tim hortons is pretty damn good too. and their coffee is much better than starbux

    no tim hortons in the US?
     
  12. geeimsobored

    geeimsobored Contributing Member

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    Obviously this depends on what type of donuts you eat. Each company has their better and worse products.

    I'd say strictly speaking in terms of a comparison of glazed donuts, shipleys wins hands down. KK focuses too much on aesthetics and in the process manages to put a pound of sugar on top of the donut, although it is placed in a nice consistent coating.

    Shipleys on the other hand will, if you go at the right time, give you fresh donuts where the sugar is still melted because it just came out and those make KKs stuff taste like junk.

    However, KK does have some donuts in other categories that top shipleys
     
  13. Two Sandwiches

    Two Sandwiches Contributing Member

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    We have them in New York. I love them.
     

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