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Booming CupCake business in USA

cup cake business , cup cake business , cup cake bakeries , cup cake cafes


Bakeries across New York and the rest of the country are finding out that cupcakes can equal cash.

For Emma Simon, happiness is a red velvet cupcake.

"She'll gobble up the frosting, and then she'll eat the rest of the cupcake," Emma's mother, Anna Coatsworth, said. Cupcakes are whipping up an international frenzy.

Specialty shops are multiplying, and the bad economy is feeding the craving. For a recession-weary public, the humble cupcake is a sweet – and affordable – escape.

"We were really something they could hold onto with a little nostalgia and a little bit of comfort," Steve Abrams, owner of Magnolia Bakery in New York City, said.

Abrams expanded from the original location in 2008, and is now up to four New York bakeries – plus one in Dubai. "We get requests every day from all over the world for franchises," Abrams says.

Each shop bakes about 5,000 cupcakes each day, and a mail order business is in the works. All told, sales this year could hit $20 million.

That kind of success is hard to ignore, which is why there's suddenly more competition than ever fighting for a piece of the pie.

Godiva has been selling chocolates for the better part of a century. Now, it's selling cupcakes by mail order.

Even the White House has discovered Washington's Georgetown Cupcake. Two sisters started the business in 2008, hoping to sell 100 cupcakes a day. On Valentine's Day, they cranked out 25,000.

"It's fantastic – we couldn't imagine doing anything else," co-owner Sophie LaMontagne said.

In fact, they don't have time to do anything else. In addition to their two stores, the sisters have started their own mail order service, shipping well over 1,000 cupcakes each day.

Cupcakes are a $6 billion industry. The famous Magnolia Bakery gets about five franchise requests a day from as far away as India and Kuwait, but Magnolia has no plans to franchise – at least, not yet.
CBS :CBS 2's Alexis Christoforous contributed to this report.


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