In brief
Candace Nelson, the founder of Sprinkles Cupcakes, announced the closure of the beloved brand after 20 years of success, marked by its unique vending machines. While the company expanded nationally, it ultimately succumbed to market challenges and private equity dynamics. Fans took to social media to mourn the loss.
NEW YORK (AP) — After 20 years of delighting patrons across the United States, Sprinkles Cupcakes, famous for its cupcake ATMs, is shutting down, as announced by its former owner Candace Nelson.
Nelson, who founded the brand after losing her job in 2005, expressed a deep personal connection to the company, stating, 'This isn’t how I thought the story would go.' The closure was officially communicated on December 30.
Sprinkles started in Nelson's kitchen and quickly rose to national fame from its first location in a small Beverly Hills storefront. The company gained traction, especially with its unique cupcake-dispensing machines, which captured the interest of social media users, particularly on TikTok, showcasing the catchy jingle that played while desserts were dispensed.
Currently, Sprinkles no longer has products for sale on its website, and all retail locations have been shut down. Nelson sold the company to the private equity firm KarpReilly LLC in 2012 when it boasted ten locations.
The private equity landscape has seen significant growth in the restaurant sector recently, with over $94 billion invested from 2014 to 2024. Many fans voiced their concerns on social media, suggesting that the closure of Sprinkles Cupcakes fits a larger trend where private equity buys up restaurants and brands that end up facing bankruptcy or shutdown, as seen with other establishments like Red Lobster and TGI Fridays.
KarpReilly has not responded to inquiries regarding the factors leading to the closure of Sprinkles.
