Few assignments are as fun as those about food trends, and when I was given a story about the boom in “cupcakeries”,  I knew I had the sweetest story of the day.  Cupcakes are more than a fad. Sure, they’re a niche market, but the low prices & high demand are helping gourmet cupcake shops thrive. Most cities today have at least one, with lines of hungry customers that go out the door. Sales reportedly rose nearly 9 % last year, and chains like Sprinkles in LA and Crumbs in New York have dozens of locations. Employing hundreds of people and smaller boutiques are doing well, too in tiny Mill Valley, California, right outside San Francico, Frosting Bake Shop is holding it’s own against the gelato store and Baskin Robbins down the street.

In fact business is going so well, the owner is opening a second, bigger shop, which means a dozen new jobs, from the bakers to drivers to clerks & more taxes for the local economy. This store is one of 600,000 small businesses that opened last year. All told, there are more than 29-million small businesses in the U.S., accounting for more than “half”  of all private sector jobs. In fact, small businesses like Frosting Bake Shop have created 60% of new jobs over the last 15 years.

Now, cupcakes are expanding beyond the specialty gourmet retail shop. The Ritz-Carlton hotel in New York offers a “Cupcake Tea” for $25 dollars. Many restaurants now offer cupcakes on dessert menus and fast food restaurants may be next.  According to some reports, Taco Bell is test-marketing red velvet cupcakes in some Southern California locations!