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More on Cupcake Economics

I didn’t get to include anywhere near all the insight the owner of Muddy’s Bake Shop shared with me for this article I wrote about the explosion of cupcake shops in Memphis.

Here now is more from Kat Gordon, the sweet-treat-baking proprietor of an East Memphis eatery that prides itself on “lovin’ from the oven.”

Q. Why are cupcake shops so popular?
A. Cuteness and deliciousness aside, there’s a strong economic reason cupcakes have taken off. As consumers, we’re all looking for small treats that are “affordable”. Granted, “affordable” is very subjective and as the market variety grows, so does the variation in price. A lot of cities now have price points that range up to $4 or $5 each. But I guess in the grand scheme, even that still qualifies as a small treat when a lot of families are making larger budget cuts. Back to cuteness and deliciousness… they’re cute and single serving sized, so they’re a great treat that you can get in a variety of quantities. And it’s a miniature cake- who doesn’t like cake???

Dansette

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