At a Glance
- Sprinkles Cupcakes closed after 20 years of vending-machine sweetness.
- Former owner Candace Nelson says the shutdown surprised her.
- Private-equity owner KarpReilly has not explained the closure.
- Why it matters: Fans and industry observers see the shutdown as part of a broader trend of private-equity-owned restaurants shutting down.
Sprinkles Cupcakes, the company known for its “cupcake ATM” vending machines, announced its closure on Dec. 30, 2024 after 20 years of operation. Former owner Candace Nelson expressed shock at the decision.
Candace Nelson said:
> “Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go,”
- Founded in 2005 by Nelson in a Beverly Hills storefront.
- First location was a former sandwich shop.
- The machines went viral on TikTok with a recurring “I love Sprinkles” jingle.
Ownership & Market Context
Nelson sold the business to private-equity firm KarpReilly in 2012 after it expanded to 10 locations nationwide. The firm owns dozens of other consumer brands, but has not responded to requests for comment. Private equity poured $94.5 billion into restaurants between 2014 and 2024, according to PitchBook.
| Year | Milestone |
|---|---|
| 2005 | Company founded |
| 2012 | Sold to KarpReilly |
| 2024 | Closure announced |
The shutdown echoes concerns that private-equity ownership can lead to rapid closures of beloved local brands.
Key Takeaways
- Sprinkles Cupcakes closed on Dec. 30, 2024, after 20 years.
- The company was sold to KarpReilly in 2012 and had 10 locations at its peak.
- Private equity invested $94.5 billion in restaurants over a decade, raising questions about sustainability.
The closure marks the end of an iconic vending-machine phenomenon, leaving fans to reminisce about the sweet nostalgia it once offered.
