Austin, TX, January 1, 2026
Sprinkles Cupcakes, known for its gourmet treats and innovative Cupcake ATMs, has closed all 21 of its stores and 25 ATMs across the U.S. The abrupt decision has left employees and customers shocked. The company’s founder expressed her surprise at the shutdown, noting unforeseen business circumstances as the cause. Founded in 2005, Sprinkles rapidly gained popularity but has now ceased operations entirely, raising concerns about the challenges faced by niche specialty food businesses.
Austin, TX: Sprinkles Cupcakes Shutters All Locations Nationwide
Sprinkles Cupcakes, the renowned bakery chain known for its gourmet cupcakes and innovative Cupcake ATMs, has ceased operations at all its locations across the United States as of December 31, 2025.
Details of the Closure
The abrupt shutdown affected all 21 Sprinkles stores and 25 Cupcake ATM locations nationwide. This includes establishments in major cities such as Beverly Hills, California; Dallas and Plano, Texas; and Orlando, Florida. The closures were confirmed by the company’s founder, who expressed her surprise and sadness over the decision, stating that she never imagined the brand would end this way and thought it would continue to grow and be her legacy.
Employee Reactions
The suddenness of the closures led to swift backlash from Sprinkles’ employees. Many workers voiced frustration over the lack of advance notice regarding their layoffs. Some employees reported receiving less than a day’s warning before the stores closed, leading to feelings of shock and disappointment.
Background of Sprinkles Cupcakes
Founded in 2005 by Candace and Charles Nelson in Beverly Hills, California, Sprinkles Cupcakes quickly gained popularity for its high-quality ingredients and unique offerings, including the introduction of the Cupcake ATM in 2012. The company expanded to multiple locations across the United States, becoming a significant player in the gourmet cupcake industry. In 2012, the Nelsons sold the company to private equity firm KarpReilly Capital Partners, after which Candace Nelson had no operational involvement in the business.
Industry Impact
The closure of Sprinkles Cupcakes marks a significant event in the quick-service bakery sector. The brand’s innovative approach, such as the Cupcake ATM, had set trends in the industry. The sudden shutdown raises questions about the challenges faced by niche specialty food stores, including rising operational costs and changing consumer preferences.
Current Status
As of January 1, 2026, all Sprinkles Cupcakes locations and Cupcake ATMs are closed. The company has not provided further details regarding the reasons for the closures or any plans for future operations. Customers and employees are left seeking clarity on the circumstances surrounding the sudden shutdown.
Frequently Asked Questions (FAQ)
What led to the closure of Sprinkles Cupcakes?
The company has not provided specific details regarding the reasons for the closures. However, reports indicate that the decision was made due to unforeseen business circumstances, leading to the immediate shutdown of all locations.
How many locations were affected by the closure?
All 21 Sprinkles Cupcakes stores and 25 Cupcake ATM locations across the United States were closed as of December 31, 2025.
What is the current status of Sprinkles Cupcakes?
As of January 1, 2026, all Sprinkles Cupcakes locations and Cupcake ATMs are closed. The company has not provided further details regarding the reasons for the closures or any plans for future operations.
Who founded Sprinkles Cupcakes?
Sprinkles Cupcakes was founded in 2005 by Candace and Charles Nelson in Beverly Hills, California.
What was the Cupcake ATM?
The Cupcake ATM was an innovative vending machine introduced by Sprinkles in 2012, allowing customers to purchase fresh cupcakes 24/7.
Key Features of Sprinkles Cupcakes
| Feature | Description |
|---|---|
| Founding Year | 2005 |
| Founders | Candace and Charles Nelson |
| Number of Stores at Closure | 21 |
| Number of Cupcake ATMs at Closure | 25 |
| Innovations | Introduction of the Cupcake ATM in 2012 |
| Sale to Private Equity Firm | 2012 |
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
