[rayiner]

How much growth is really left in the $5 cupcake market in a country where wages are stagnating? The conventional wisdom is that you have to move up-market in order to make any money, but you're targeting a shrinking customer base...

[dbrian]

Starbucks has been doing well selling $5 coffee. I don't think the cupcake market will ever be that size, but there is plenty of room for companies like https://www.heycupcake.com/.

[wavefunction]

Coffee also has the advantage of a habit-forming substance.

[Samuel_Michon]

I'd say sugar qualifies.

http://en.wikipedia.org/wiki/Sugar_addiction

[illuminate]

"in a country where wages are stagnating"

In a country where desserts are a part of nearly every meal, it's a "cheap" thrill. Ben & Jerry's haven't gone out of business.

[VLM]

"spendable cash" is dramatically declining not just stagnating. But when you can't afford $50 anymore to take your date to the movies or a $100 bar tab for an evening, suddenly a "coffee and a cupcake" $10 date starts sounding pretty good. Think replacing more expensive options, not adding a new expense. The $5 customer base is rapidly expanding from the formerly $50 customer base, not shrinking.

The faddishness of it is annoying. We're allowed 10 new cupcake retailers per year and nothing else opens. Why can't my son, who's medically diagnosed as gluten intolerant, have a nice gourmet beef jerky bar or gourmet fried egg restaurant or something, anything other than endless cupcake stores?

[rayiner]

"We're allowed"?

[VLM]

the small business class in my local area seems intensely conformist not rebels. So if one of them opens a cupcake shop they all have to open cupcake shops. Weird.

We're also undergoing a gym bubble where we've recently added several "curves" "24 hr fitness", several golds gyms, and plenty of non chain gyms. "Four of my entrepreneur friends just opened a gym, I better open one too to keep up!".