Pizza Cupcake was a pizza restaurant chain that started in 2010 and grew quickly before running into financial troubles a few years later. The company was known for serving individual round personal-sized pizzas that resembled cupcakes. Let’s take a look at how Pizza Cupcake is doing now after its rapid expansion and subsequent stumbles.
What was Pizza Cupcake’s business model?
Pizza Cupcake was founded in 2010 in Boston by entrepreneur Ken Munie. The core concept was serving round personal pizzas designed to look like cupcakes. The pizzas ranged from classic flavors like pepperoni and cheese to dessert options like Nutella and strawberries.
The individual serving size and unique cupcake shape were key parts of Pizza Cupcake’s branding. They allowed the pizzas to be served in colorful carriers with custom pizza “wrappers.” The personal size also appealed to millennials looking for quick and portable meals.
In additional to dine-in restaurants, Pizza Cupcake expanded through franchising and express kiosks in malls, airports, and college campuses. At its peak in 2015, Pizza Cupcake had over 200 locations and was continuing to grow.
What challenges did Pizza Cupcake face?
Pizza Cupcake’s rapid growth soon led to some challenges:
- Declining product quality – With expansion, there were inconsistencies in Pizza Cupcake’s products and complaints about poor quality.
- Franchisee discontent – Some franchisees were unhappy with corporate decisions and lack of support.
- Market saturation – Markets became oversaturated with Pizza Cupcake locations competing against each other.
- Financial losses – Many locations were unprofitable, putting financial strain on the company.
These issues left Pizza Cupcake struggling to maintain its momentum. In 2015 and 2016, the company closed about 25% of its locations. Revenue and expansion plans stalled.
How has Pizza Cupcake adapted its business strategy?
In response to its challenges, Pizza Cupcake made some strategic changes:
- Refocus on product quality – Improved training and oversight to ensure consistency.
- Greater franchisee collaboration – Worked on rebuilding relationships with franchisees.
- Cautious growth – Scaled back expansion plans and focused on existing markets.
- Menu innovation – Developed new specialty pizzas and side items.
Pizza Cupcake also introduced updated restaurant designs and branding. The company hoped these moves would help revitalize interest in the brand.
What is Pizza Cupcake’s current status?
Today, Pizza Cupcake has around 130 locations in operation. Here are some key facts about its current status:
- Concentrated in core markets – Northeast, Midwest, California.
- Mix of corporate and franchised locations – About 60% franchised.
- Strong university presence – On or near 25 college campuses.
- 300 employees at corporate HQ and support centers.
- Andy Stenzler appointed CEO in 2017 – Former Panera Bread executive.
- $32 million estimated annual systemwide sales.
While Pizza Cupcake is no longer pursuing aggressive nationwide expansion, the company appears stable. It is focused on nurturing its core markets and rebuilding the brand’s reputation for quality and innovation.
How has Covid-19 impacted Pizza Cupcake?
The Covid-19 pandemic posed significant challenges for Pizza Cupcake, as for all restaurants:
- Decline in dine-in demand – Closures and reduced occupancy affected sales.
- Supply chain issues – Disruptions caused shortages of some ingredients.
- Added costs – For safety measures and supplies like masks and cleaning.
- Staffing struggles – Employees out sick or nervous about exposure.
However, Pizza Cupcake was able to leverage some advantages during the pandemic:
- Takeout and delivery friendly menu – Easy to adapt operations.
- College campus presence – Captured student demand even with remote learning.
- Small real estate footprint – Lower rent costs than full-service restaurants.
As a result, Pizza Cupcake fared better than some peers during Covid-19. The company credits its delivery, takeout and digital ordering capabilities for allowing sales to remain steady.
What are Pizza Cupcake’s future plans and outlook?
As conditions improve post-pandemic, Pizza Cupcake is hopeful but cautious about future growth. Here are some potential plans on the horizon:
- Opening more express kiosks – In transportation hubs and entertainment venues.
- Introducing more technology – For ordering and operations automation.
- Limited new franchising – In targeted regions like Texas and the Southeast.
- Menu innovation – New fusion flavors and healthier options.
However, Pizza Cupcake intends to take a slow and steady approach. The company wants to avoid repeating past mistakes of rapid, unsustainable expansion. The focus will be on strengthening existing markets and rebuilding buzz around the unique brand.
If Pizza Cupcake can continue providing a quality product and customer experience, the future looks bright. But the company has learned difficult lessons about growing sensibly. The cupcake pizza craze may have cooled, but Pizza Cupcake hopes to show it still has winning ingredients if growth is approached strategically.
Pizza Cupcake Locations by Year
| Year | Locations |
|---|---|
| 2010 | 1 |
| 2011 | 8 |
| 2012 | 25 |
| 2013 | 63 |
| 2014 | 152 |
| 2015 | 203 |
| 2016 | 165 |
| 2017 | 143 |
| 2018 | 138 |
| 2019 | 132 |
| 2020 | 130 |
Key Takeaways
- Pizza Cupcake grew quickly after launching in 2010 but overextended itself.
- Quality, franchisee, and financial issues caused a retrenchment starting in 2015.
- The company revamped strategy and operations to focus on core strengths.
- Pizza Cupcake is smaller but more stable today at around 130 locations.
- Cautious, targeted growth plans aim to rebuild brand strength.