The Business Case for Dessert Concepts

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Desserts are making a comeback.

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Dessert shop openings were up 52% from May 2023 to April 2024, according to Yelp data.

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Even though consumers are pulling back on spending, they still view dessert as worth the money. For many Americans, going for dessert is still generally a fun and affordable outing with family or friends.

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There is a clear business case for stand-a-lone dessert concepts too:

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• Dessert shops tend to sell a very limited product mix that leads to better efficiency and margins relative to other restaurant types
• Dessert shops typically have lower upfront buildout costs, which leads to a quicker payback period on the initial investment for new store openings

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The challenge with dessert shops is maintaining relevancy. Single-concept dessert shops tend to attract a spike of interest and then fade when the next big thing comes out.

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In the dessert world, staying power is the cherry on top.