Americans love indulging in sweets, so expect to see new trends in the dessert realm. This will be an especially popular segment as recession woes continue, forcing the average consumer to limit discretionary expenses. If a starving student or a struggling family forgoes dining out on the weekend, an exception would most likely be made for desserts. With the market already saturated with cookie, ice cream and frozen yogurt offerings, there is definitely room for new unique concepts in this category. These new dessert concepts work well in all forms of retail settings, especially high-traffic, family friendly shopping centers and lively retail street-front spaces. Keep your eyes open for Duff’s CakeMix, JARS by Fabio Viviani and the “CookieLab” by Insomnia Cookies to be just a few examples of the dessert wave expected to roll out nationally.
Duff’s CakeMix has strong expansion goals, hoping to open approximately 75 new units per year until December 2025. The do-it-yourself cake decorating studio concept will aggressively begin to open new units in 2023, after expecting to sign about 50 multi-unit franchises throughout the country by the end of this year. Duff’s CakeMix already has two Southern Californian units. In March, the brand partnered with Fransmart, the franchise management company responsible for the growth of such well-known brands as Qdoba, The Halal Guys and Five Guys, in order to help with its national expansion goals. Duff’s will look for inline or end cap space in the 2,000- to 3,000-s.f. range in the top U.S. metros. Preferred sites include mid- to upscale lifestyle centers, neighborhood power centers, grocery-anchored centers, strip malls and retail storefront sites close to office and residential buildings.
Locations should be in areas with a strong mix of young families and 20-somethings, and ideal co-tenants would include other non-competing fun destination eateries and shops, such as Rocket Fizz. Duff’s CakeMix was conceived of by Duff Goldman, the celebrity baker on the Food Network show “Ace of Cakes.” The chain is a dessert version of the Color Me Mine pottery painting concept, in which customers can pick a flavored cake or cupcake of their choice, as well as select candies, frosting and fondants to decorate it with.
JARS is another new dessert concept, conceived of by celebrity chef Fabio Viviani, that is just now announcing franchise expansion after signing with Fransmart in 2021. The brand has a goal of opening at least 15 to 20 units per year over the next two to three years. After that, JARS anticipates ramping up its growth to between 50 and 75 new units per year until 2027. The top 50 markets will be targeted. Within the last two months, a franchise deal was signed for 10 units in the Austin and Dallas/Fort Worth regions of Texas, and another multi-unit deal was inked for units that will open throughout all of Orange County, Calif. In addition, its first U.S. unit is expected to open by September in a 1,500-s.f. space within Chicago’s West Loop neighborhood, a heavy foot traffic area filled with other eateries, bars and art galleries.
For its future growth endeavors, JARS will be seeking Class A outdoor mall spaces or retail street-front second generation restaurants, between 750 and 1,500 s.f., in high-density urban neighborhoods with heavy daytime and nighttime traffic. Sites should be near other lunch and dinner establishments, such as North Italia or Shake Shack. JARS will be a unique fast-casual gourmet dessert concept that will have a rotating array of dessert concoctions served in single-serve, reusable jars with flavor combinations such as red velvet cake, tiramisu, pecan pie, s’mores and cobblers. Soft serve ice cream and gourmet coffees will also be available.
Insomnia Cookies is currently in major expansion mode to the tune of opening about 75 new units per year over the next five years in more suburban and urban environments where the brand is underpenetrated. The chain has hinted that it would like to open more of its CookieLab concepts introduced last year in South Philadelphia in which customers, after retrieving a password via Instagram, can access a secret speakeasy-style neon-decorated room behind a makeshift bookshelf and then order unique customization cookies and milkshakes. This same Philadelphia speakeasy-style location was expanded in January to include “The Space at CookieLab,” an area that can be rented out for special events such as birthdays or company gatherings.
Potential sites for expansion of this new CookieLab concept would be tourist destinations with heavy foot traffic, especially where Insomnia has already saturated a particular market and where its loyal customers would be open to this new experiential experience. Most likely street-front retail spaces, including the ground floor of mixed-use buildings, will be sought after. Units should be in the 3,300-s.f. range, instead of Insomnia’s usual square footage requirements of 500 to 1,200 s.f. Areas with a healthy mix of residential and office space, as well as a nightlife element, will be ideal, with co-tenants to include family friendly restaurant/bars, such as BJ’s Restaurant & Brewhouse. Expect Northeast markets close to the brand’s Philadelphia headquarters to be targeted initially for this concept, followed by other popular tourist metros, such as Miami.
