Hiya

Have been researching the cupcake industry a bit over the last few days...I thought it would be a great business to do as it brings me and others so much pleasure but the more and more I read around articles on the net it all seems very negative.

Alot of people predicting that the 'bubble has burst' and cupcakeries will soon be out of business once the 'fad' has passed.

Am based in the UK and am hoping/planning to start online but would love to open a storefront, there are a few cake shops in town (quite a few online) but no specific cupcakeries.

What is your experience and thoughts on this.....is it a saturated market? Are people still going strong?

Just thinking outloud really but would love your opinions...

c
x

Here in AK, it just keeps growing and growing.... but I can't see it continuing to grow for too much longer. Maybe another couple of years? Certainly not long enough to start a business and recoup enough costs to make it worthwhile if that's all the time you have. And AK is ALWAYS behind on the trends (and not hit hard by the recession).

Maybe as the trend started in the UK a little later then it'll take longer fror the bubble to burs??t...think I better pull my finger out and make this happen quickly if that is what Im going to do...

2012 Baking Trends

Wired: Doughnuts
Tired: Cake Pops
Expired: Cupcakes

Addiction to this won't end: cookies. Don't rely just on cupcakes. Children and adults alike love their cookies around here.

http://www.onegirlcookies.com/sweets/

http://www.milkandcookiesbakery.com/site/

http://www.insomniacookies.com/

Yes, I did think about looking at other things to bake and considered cookies...but not sure how viable that is as a delivery thing....

Thanks for your input guys...gonna repost this on the UK thread and see what people think.

c
x

i think it's like anything else. if you open up 5 coffee shops on one street, then the "coffee trend" will die out faster cause the local market is so saturated.

If you get a market that isn't so saturated by the "cupcake fad" then you'd be fine. Opening a shop in the same neighborhood as Georgetown Cupcakes for example might not be a great idea lol.

People love desserts. It's simple. From everyone I've talked to here, people prefer to have cupcakes at work/birthday parties than cake cause it's easier than cutting a whole cake, etc.

Just yesterday I mentioned I was thinking of opening a cupcake shop to some friend back home (where cupcake shops aren't so prevalent) and they were ALL over the idea.../shrug

Cookies are easier to deliver/send through post than cupcakes or cakes. One Girl Cookies started from a tiny apartment as mail order. Now they have two stores, a book (that I adore) and they're still mailing boxes of cookies.

http://www.womenyoushouldknow.net/wysk-profile-dawn-casale/

I'm another one who loves cookies as dessert.

It seems as if society is slowly getting over the craze, so my honest opinion would be to have a variety of baked goods that you can offer. You have to evolve with your customer's needs!

I thought my business would be 50% cupcakes, but with the variety I offer, cupcakes are only about 10% of my sales and most of these sales are corporate.

Cupcakes are never going to be obsolete, but there is saturation in many areas. The game is to be different and the best. If you are unique and your product is the most delicious, you will weather the storm of a saturated market. If you are just one in the pack, you may get lost, or worse... you can't re-coup your investment before the business can no longer stay open.

One thought, if you plan to box yourself in to one item, be sure your demographics support the plan. You need a highly populated area and foot traffic (people who walk by on their way to somewhere else and happen upon your business). This usually calculates into a high rent district.

Along with a business plan, it is best to take a year or two to study trends. I did.