Slate put out a really interesting article on Thursday about how we’ve seen a huge rise in cupcake shops across America’s metropolitan centers and  that this is a bubble that we’re about to see burst.

In the article, he talks about how, while times are good, people will be able to afford these $3 sugary treats.  As more and more people start getting hit by the recession, things like cupcake purchases will be the first things to go.

The stores that were in there from the beginning have been able to attract the audiences and reap the rewards of the revenue.  Everyone else, who’s been just jumping on to the trend, will have a harder time of turning their store into a sustainable business.

This totally makes sense.

If I was thinking about starting a cupcake shop, I’d just want to make it more than just a cupcake shop.  Here in Washington DC we have some interesting examples of this.   Baked & Wired in Georgetown have made themselves into a real full service coffeeshop along with having AMAZING cupcakes.    At Red Velvet in Chinatown, there is literally just a counter with cupcakes.

While a consuming a cupcake is more of an occasional expense, a cup of coffee is a regular part of my life.  I’d much more easily see Baked & Wired becoming part of my life and I’d imagine being a more sustainable business.

Have you been to a cupcake place lately?  How much did you pay?

(Photo by GaryBembridge)