DC opts for sweetness during recession

Although the economic struggles of the last year required workforce and inventory cuts for many American businesses, not all news is negative. Washington cupcake shops are experiencing great support from the public – at $3 and $4 for each cupcake.

Weekends tend to be the hottest selling day for these treats. The Red Velvet Cupcakery in Chinatown/Penn Quarter typically sells 2,000 on Fridays. Aaron Gordon opened Red Velvet Cupcakery with his sister, Canada Gordon, in December 2008. Gordon also manages a frozen yogurt shop next door that shares kitchen space with the cupcakery.

For some cupcake owners, offering a variety of flavors is key to maintaining customer interest. Karas said the uniqueness of the product is her reason for creating a shop centered on this treat.

Karas said, “I love the … individuality of cupcakes. You can come in and choose what flavor you want, which I loved, and it allowed me to stay somewhat focused on a type of product but be creative in other ways – through flavors and flavor combinations and the quality of products and ingredients.”

“My sister thought it would go well because it would be two upscale dessert places. In this time of economic woes, it would be a good time for simple pleasures,” Gordon said.

As part of a public relations campaign, Red Velvet held a free cupcake day in January that brought in hundreds of customers. The most popular flavor since the opening is the Southern Belle (also known as Red Velvet, the shop's namesake).

Unique naming is an important part of branding in the cupcake culture. Owners find that the name brings intrigue and a sense of whimsy to the product.

Penny Karas took care with names as she prepared to open Hello Cupcake in Dupont Circle in August 2008. At her shop, customers can find cupcakes like Raspberry Beret, Velvet Elvis and Prima Donna.

The fun flavors required a shop that exhibited a similar style. Karas considered playful colors and motifs when working with a designer for the interior of her new shop.

“I think there is an element of the sort of fun and frivolous, along with the slick and modern, here in the shop,” Karas said.

She left her career in public relations and marketing a year into the planning of the cupcakery.

“I had been looking for some time for something that inspired me in a different way, the way that I originally been inspired since I started that career. I’m inspired here everyday,” Karas said.

In addition to inspiration, she attributes some of Hello Cupcake's success to its location.

“Dupont seemed to be the perfect confluence of the neighborhoods where people live and neighborhoods where people work. We’re right where people are walking. And it’s really a walk-in business,” Karas said.

Like Hello Cupcake, Georgetown Cupcake also takes advantage of the foot traffic in DC. It opened as the first cupcake-exclusive bakery in DC in February 2008. Customers typically wait 30 minutes in a line outside the shop on the weekends.

The first shop to garner a cupcake line, Magnolia Bakery, originated in New York in 1996.

A cult following led to knock-offs nationwide. In 2002, DC became home to CakeLove, a cake-centric shop, with daily cupcake offerings. Sprinkles Cupcakes led the trend on the West Coast in 2005, starting in Los Angeles.

Karas said the cupcake affair at Hello Cupcake is quite different than what one would expect from Sprinkles or Magnolia.

“We put a lot of thought and effort into the experience of being at Hello Cupcake. Magnolia is more of a walk-in, take out bakery. We have sit down space where you can enjoy your cupcake and coffee,” Karas said.

Gordon also considered seating when planning the layout for Red Velvet Cupcakery and yogurt shop Tangy Sweet. The shops share a large seating area that also has significant standing room. 

For some cupcake owners, offering a variety of flavors is key to maintaining customer interest. Karas said the uniqueness of the product is her reason for creating a shop centered on this treat.

Karas said, “I love the … individuality of cupcakes. You can come in and choose what flavor you want, which I loved, and it allowed me to stay somewhat focused on a type of product but be creative in other ways – through flavors and flavor combinations and the quality of products and ingredients.”