The Business Case for Dessert Concepts
Dessert concepts are seeing record growth, but will it last?
By
August 25, 2024
Desserts are making a comeback.
Dessert shop openings were up 52% from May 2023 to April 2024, according to Yelp data.
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.
There is a clear business case for stand-a-lone dessert concepts too:
- 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
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.
In the dessert world, staying power is the cherry on top.
