“Cupcake businesses are the paradox of the recession”. New Yorkers’ obsession with cupcakes has become a legitimate driver of the city’s economy. The latest unemployment numbers for New York City show that, while the labor market shrunk in June, the overall unemployment rate improved, partially fueled by growth in the restaurant and bar industry, and cupcake cafes!
Although we are in a recession, the cupcake industry is thriving! A gourmet cupcake is an indulgence and the price point is still low. For $2-$3 dollars people can buy a cupcake and feel like they’re treating themselves. For entrepreneurs, cupcake bakeries are easy to commit to— the start-up investment is much smaller than the hundreds of thousands of dollars needed to open a cafe or restaurant. If someone has a quality product and are committed, they should be able to sustain some growth and longevity.
Link to the article: http://blogs.wsj.com/metropolis/2010/07/16/new-york-citys-cupcake-economy/