The icing on the cake (do-nut!): Shipley finds sales are sweeter with online ordering
At Shipley Do-Nuts, one of the company’s most important initiatives in 2022 was getting the whole 330+ location system on board with online ordering 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.
What they learned was truly astounding.
Within weeks of launching, test stores were seeing double-digit increases in their check averages – nearly 20%.
“We honestly didn’t realize there was that much untapped demand within our most mature market – Houston,” said Shipley CMO Donna Josephson. “We knew off-premise sales are important, but to see double-digit increases overnight was enlightening to say the least.”
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 DoorDash.
Now, Shipley has deployed OLO in more than two-thirds of its system (and counting) and the results continue to impress. In a recent six-week OLO report, Shipley found that orders placed through shipleydonuts.com averaged approximately 50% larger than that of orders placed directly through delivery partners.
While Shipley was not a pioneer in offering online ordering, they’ve proven that they can still attract new customers and increase sales – even after 86 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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