Rant/Business/Cupcake Places

[Conan71]

You stole that joke from the aviation industry.....and probably some others.

Auto racing and just about any other hobby or personal business I've had

[guido911]

Back in the day, I was known for picking up a cupcake or two at Arnie's.

I seem to recall seeing a picture of someone with a cupcake very recently.

[Red Arrow]

Back in the day, I was known for picking up a cupcake or two at Arnie's.

When Arnie's was on 15th street?

[Gaspar]

You know how to wind up with a small fortune in the cupcake business?

Start out with a large fortune.

+1

I know at least 3 people who have seen these cupcake shows and begged their spouse to allow them to dip into retirement/savings to open one. At least one of these people's husbands did a proforma for his wife based on 2 employees.  You would have to sell 294 cupcakes a day just to cover the nut.  To make it worth while you would have to sell around 400. 

To break even, you would have to cook, decorate and sell 13 trays (24pc) of cupcakes every day, run the register and clean up.  If you dedicate only 1 minute to mix/pour/cook/arrange/decorate a cupcake (some are quite elaborate) it would take one person over five hours a day to finish them all.  You could add a third employee who works all night long, but then you have to sell about 100 more cupcakes.  You can only keep a cupcake alive for about 24 hours then it's dry, spongy and the frosting looses it's moisture or bleeds color.

We've visited Kupcakes and Sprinkles.  I don't think either have the capacity or time to make and sell enough product to turn a profit.  It's not impossible, but really really hard.

The sad thing is that both the existing locations (if they both still exist) didn't have very good quality of cake, so every time someone eats one they think "Wow! Mine are so much better," and they get that little dream in their heads of yachts and Ferraris and weekly pedicures at Ihloff and daily massages from a guy named Bruce. 

[zstyles]

Great reply Gasper! Thanks for contributing with a decent post on this thread!

[Conan71]

+1

I know at least 3 people who have seen these cupcake shows and begged their spouse to allow them to dip into retirement/savings to open one. At least one of these people's husbands did a proforma for his wife based on 2 employees.  You would have to sell 294 cupcakes a day just to cover the nut.  To make it worth while you would have to sell around 400. 

To break even, you would have to cook, decorate and sell 13 trays (24pc) of cupcakes every day, run the register and clean up.  If you dedicate only 1 minute to mix/pour/cook/arrange/decorate a cupcake (some are quite elaborate) it would take one person over five hours a day to finish them all.  You could add a third employee who works all night long, but then you have to sell about 100 more cupcakes.  You can only keep a cupcake alive for about 24 hours then it's dry, spongy and the frosting looses it's moisture or bleeds color.

We've visited Kupcakes and Sprinkles.  I don't think either have the capacity or time to make and sell enough product to turn a profit.  It's not impossible, but really really hard.

The sad thing is that both the existing locations (if they both still exist) didn't have very good quality of cake, so every time someone eats one they think "Wow! Mine are so much better," and they get that little dream in their heads of yachts and Ferraris and weekly pedicures at Ihloff and daily massages from a guy named Bruce. 

Donuts take a lot of volume to make money, but you rarely see a donut shop fail.

The one opening next to Lee's & Fleet Feet has substantial family money.  I still can't imagine how much it's going to take to service the rent factor on 2700 sq. ft. of nice space.  Perhaps they are counting on the family sphere of influence to help out.

Great dissertation though.  I watch a lot of Food Network programming, but I simply can't get into the cake and pastry shows, just not my bag.

[dbacks fan]

Here is a link to Sprinkles: http://www.sprinkles.com/

They opened the one in Scottsdale in '06 or '07 and it has managed to survive the current economy. Personaly I have never been and judging by the prices I think I will stay with ones from my local grocer or bakery, although it might partialy explain, other than the founders association with Food TV, how they stay in business, $36.00 for a dozen, and $40.00 for a tee shirt, even with using top grade ingredients I'm quite sure the profit margin is fairly decent.

[Red Arrow]

$36.00 for a dozen, and $40.00 for a tee shirt,

Too rich for my blood but if they can get that, fine.

I have enough hobbies that people think I am crazy for spending the money I do that I don't belittle anyone's choice for discretional spending.

[dbacks fan]

Too rich for my blood but if they can get that, fine.

I have enough hobbies that people think I am crazy for spending the money I do that I don't belittle anyone's choice for discretional spending.

Agreed. If people have the money to spend they can spend it how ever they want. I just happen to be one of those that's in a conservation mode so my discretionary spend is limited.

[Conan71]

Agreed. If people have the money to spend they can spend it how ever they want. I just happen to be one of those that's in a conservation mode so my discretionary spend is limited.

I'm in a conservation mode as well, until another cycling gizmo catches my eye.  I'm off to pick up another racing frame and fork set I just can't live without. 

[Renaissance]

Donuts take a lot of volume to make money, but you rarely see a donut shop fail.

Yeah but donuts are lowwwwww overhead compared to cupcakes.  Mass-produced vs. handmade. 

I wonder if an "artisan donut" shop could take off?

[sgrizzle]

BiskitTime.

Drive thrus that specialized in bisquits and gravy. With sausage. Lasted 6 months.

WHY WAS I NOT NOTIFIED ABOUT THIS MIRACLE BEFORE IT CLOSED!?!?!?!

[sgrizzle]

Here is a link to Sprinkles: http://www.sprinkles.com/

They opened the one in Scottsdale in '06 or '07 and it has managed to survive the current economy. Personaly I have never been and judging by the prices I think I will stay with ones from my local grocer or bakery, although it might partialy explain, other than the founders association with Food TV, how they stay in business, $36.00 for a dozen, and $40.00 for a tee shirt, even with using top grade ingredients I'm quite sure the profit margin is fairly decent.

The one in LA survives because they sell to people who regularly pay $700 to buy dinner for two.

[Gaspar]

WHY WAS I NOT NOTIFIED ABOUT THIS MIRACLE BEFORE IT CLOSED!?!?!?!

You uncovered their marketing flaw. 

[DTowner]

I've tried cupcakes at some of the well-known tendy cupcake joints in NYC and LA featured on the food and travel channels.  Some were ok, but not worth the price (of course, I prefer chocolate over any kind of cake).

Ko Koa had great desserts, after dinner drinks and high prices, but couldn't make it work on Brookside.  Carmel retooled the concept slightly at the same location, but lasted even less time.  I don't see how a narrower dessert concept makes it in a location with even less foot traffic.