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Sprinkles Cupcakes Closes as Cupcake Trend Declines

1/12/2026

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Story summary
  • Candace Nelson founded Sprinkles Cupcakes in 2005 in Beverly Hills, California, gaining popularity with cupcake ATMs.
  • The brand closed on December 31, 2023, due to rising costs and private equity pressures.
  • During the decline, Baked by Melissa thrived by focusing on e-commerce and diversification.
  • Industry observers note the cupcake trend has waned, but cupcakes remain beloved, and baking businesses will depend on quality.