By Rieva Lesonsky
A couple of years again after I was editor of a enterprise journal, we named cupcake-only shops as a sizzling enterprise to begin. When the financial system tanked, I anxious that each one these cupcake-only entrepreneurs I had inspired would discover their companies coming to a screaming halt.
Apparently I needn’t have anxious. Cupcake shops haven’t solely survived, however are thriving to nonetheless be one of many hottest sorts of companies to begin. Actually, The New York Instances simply took a have a look at the continuing phenomenon on this article that dubs cupcakes the brand new “entrepreneurial fantasy.”
The Instances spotlights 4 main enterprise fashions: the true cupcake-only retailer, the shop that sells cupcakes and different meals objects, the chain and the online-only cupcake retailer. Cupcakes are additionally spawning ancillary merchandise, akin to cupcake blogs dedicated to new flavors and tendencies, a cupcake e book by Martha Stewart that spent almost 3 months on the New York Instances bestseller record, and an upcoming Meals Community pilot, “Cupcake Wars.”
Why are cupcakes so sizzling regardless of the recession? Consolation meals all the time do effectively in dangerous instances, and cupcakes match loads of wants. They’re nostalgic “child meals” that takes individuals again to an easier time; enjoyable and cheery; an reasonably priced deal with; and a “little luxurious.”
The Instances acknowledges that the fact of launching a cupcake retailer isn’t straightforward (no startup is). However the idea continues to draw entrepreneurs in search of a enjoyable enterprise, and the outlets have been spreading not simply in massive cities, however in smaller ones, too. Analysis agency Mintel says cupcake gross sales nationwide are projected to extend by 20 p.c within the subsequent 5 years. That’s a complete lot of frosting.