Fans mourn closure of cupcake vending machine company Sprinkles Cupcakes
NEW YORK (AP) — Sprinkles Cupcakes, a company famous for selling sweet treats in vending machines known as “cupcake ATMs,” has closed after 20 years of business in the United States, according to its former owner.
“Even though I sold the company over a decade ago, I still have a personal connection to the company and I didn’t think the story would play out this way,” said Candace Nelson, who founded the company in 2005 after losing her job. The closing was announced on December 30.
Nelson started Sprinkles Cupcakes in her own kitchen, and its first location was a small Beverly Hills store that had previously been a sandwich shop. The brand would rise to national fame, and fans took to social media following the company’s announcement to mourn its closure.
The company’s cupcake dispensing machines, located in malls and airports, briefly went viral on TikTok with the not-so-subtle song “I love Srinkles” playing over and over as a mechanical arm dispenses dessert.
The company, which has also removed all operational locations across the country, no longer has any products for sale on its website.
Nelson sold his business to private equity firm KarpReilly LLC in 2012 after the company expanded to 10 locations nationwide. The firm has dozens of other companies for products including a health food home delivery service, kombucha and protein wellness shakes.
KarpReilly did not respond to an emailed request for comment Friday evening. Neither the company nor Nelson provided a reason for the cake company’s closure.
Private equity has significantly expanded its influence in restaurants over the past decade, investing $94.5 billion between 2014 and 2024, according to data from capital markets firm PitchBook.
Some angry Sprinkles Cupcakes fans said on social media that the closures were part of a larger trend in which private equity firms were buying up restaurant and retail brands. Like Red Lobster or TGI Fridays – then file for bankruptcy or close down completely.
