Sprinkles Cupcakes to close all locations, founder confirms

Sprinkles Cupcakes, the once-highly visible bakery brand that helped popularize gourmet cupcakes and novelty “cupcake ATMs,” is shutting down all of its locations, according to a statement from founder Candace Nelson.

In an Instagram post shared publicly this week, Nelson acknowledged longstanding rumors that the chain was preparing to close, writing that she never expected this outcome when she launched the business 20 years ago.

“I thought Sprinkles would keep growing and be around forever,” Nelson wrote. “I thought it was going to be my legacy.”

Nelson opened the first Sprinkles location in Beverly Hills in 2005, helping ignite what became a national trend in boutique cupcake bakeries. Over the years, Sprinkles expanded across the United States, adding brick-and-mortar stores in major cities as well as a network of “cupcake ATMs” that allowed customers to pick up fresh cupcakes around the clock.

At its peak, the company operated at least nine retail bakeries in California and storefronts in cities from Dallas to Atlanta and New York, blending colorful marketing with a focus on premium ingredients and seasonal flavors. It also became known for its dog-friendly treats and occasional celebrity fan base.

The bakery’s expansion took a pivotal turn in 2014, when Nelson sold Sprinkles to the private equity firm Levine Leichtman Capital Partners (LLCP), a Los Angeles–based investment group. At the time, the sale was framed as a growth opportunity, with investors pledging to expand the brand’s footprint while maintaining its bakery identity.

Following the acquisition, Sprinkles opened additional locations and continued to innovate with digital ordering and its signature ATMs. But in recent years, the brand faced mounting challenges, including rising rent and labor costs, shifts in consumer preferences, and stiff competition from both national chains and local artisan bakeries.

Industry analysts also point to broader retail trends that have squeezed specialty chains nationwide, particularly those built around a single product category. Cupcakes, once a cultural fad in the 2010s, have not sustained the same level of everyday demand, making long-term profitability more difficult for a brand like Sprinkles.

Nelson’s Instagram post did not disclose details about the timing or logistics of the closures, and the company’s current ownership had not issued a formal statement as of publication. At press time, former and current employees were reportedly notifying customers about the wind-down of operations.

The closure marks the end of a brand that once defined a moment in American dessert culture. From Beverly Hills to cities nationwide, Sprinkles baked its way into mainstream awareness with a simple, singular idea and a little dose of whimsy.