Shipley Do-Nuts rolls into New Mexico with 10 planned locations

Doughnuts often come in dozens, but Shipley Do-Nuts comes in tens.

Shipley Do-Nuts, a doughnut and coffeehouse chain with locations in 13 states and counting, is expanding into the Land of Enchantment with 10 planned shops across Bernalillo, Santa Fe, Valencia, Socorro, Sandoval, Torrance, Lincoln, De Baca, Guadalupe and San Miguel counties.

The Houston-based company, often referred to as Shipley’s, was founded by married couple Lawrence and Lillian Shipley in 1936 with nothing but Lawrence’s fluffy doughnut recipe and a mom-and-pop setup selling doughnuts at five cents per dozen. The company’s presence has since grown to over 370 locations.

A 30-unit development deal will add to the growth.

The first of 10 Shipley’s, expected to open within the next 12 months, has yet to be announced. The franchisee, Vik Agrawal, and his team are currently scouring the state’s real estate to find the first spot. The goal is to have all 10 New Mexico locations up and running over the next five years.

Albuquerque had a couple Shipley Do-Nuts locations as recently as the early 2000s.

“...It’s a natural next step for the brand to embark into New Mexico,” Agrawal told the Journal on Wednesday. “I operate other franchise brands in the Albuquerque market, so we have the operational infrastructure to bring Shipley in and introduce New Mexicans to the world’s greatest doughnut.”

Agrawal has more than 20 years of franchising experience, including ownership of about 100 locations across the Church’s Chicken, Supercuts, Cost Cutters, Papa Murphy’s and Subway brands. He has been the president and CEO of Nitu Group, a restaurant and salon franchise firm, since 2007.

Agrawal said Shipley Do-Nuts’ “solid business model” and “runway for growth” made it the perfect addition to his franchising portfolio.

The company’s offerings comprise more than 60 varieties of freshly handmade doughnuts — including its signature plain glazed doughnut cut in the shape of a hexagon — in addition to iced, filled, and cake doughnuts, bear claw pastries, coffee and kolaches, which are popular Czech pastries made of soft yeast dough and a sweet or savory filling.

Jonathan Massey, the company’s vice president of franchising, told the Journal that the company offers various store formats, but the ideal location typically spans 1,400 to 1,800 square feet and employs between 10 and 15 individuals.

“Once New Mexicans get a taste of our signature plain glazed, cut in the iconic Shipley hexagon shape, they’re going to fall in love,” Agrawal said. “We think this brand is really going to take off in New Mexico.”