Forget trendy. New Yorkers’ obsession with cupcakes, sparked nearly a decade ago by ‘Sex and the City’ characters’ pilgrimages to Magnolia, has now become a legitimate driver of the city’s economy.
The latest unemployment numbers for New York City show that, while the labor market shrunk in June, the overall unemployment rate improved, partially fueled by growth in the restaurant and bar industry. And one of the main drivers of that growth? Little morsels of impossibly cute frosted sweetness.
“One segment of the industry that seems to be adding the most outlets is cupcake cafes. This could be a fad, or not,” Barbara Byrne Denham, chief economist at real-estate services firm Eastern Consolidated, wrote in a report Thursday.
Cupcake businesses big and small seem to back up Denham’s position. (Call it buttercream economics.)
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