The Business Case for Dessert Concepts

Dessert concepts are seeing record growth, but will it last?

Author

Kieran Ryan
August 19, 2024

Good morning, Nerders. It’s Monday, August 19th. In today’s newsletter, we cover:

  • The business case for dessert concepts

  • The U.S. obesity market looks unstoppable

  • America is running out of electricity

TODAY’S STORY

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.

DATA BYTES

  • The number of U.S. people on weight loss drugs may be 30 million by 2030 — or around 9% of the population

  • Compounded weight loss drugs mixed by pharmacies and medical spas represent a growing percentage of the overall market

  • Airlines, energy drink, and skincare companies are some of the non-obvious winners from the growing U.S. obesity market

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#SHORTS

America is running out of electricity

@boringbusinesskieran

America is running out of electricity ⚡️ // Make sure to follow me to keep up with the latest business stories and trends #business #elec... See more

PREVIOUS STORIES

  • Tesla’s Cybertrucks — A marketing marvel or a financial flop?

  • What’s Next for Streaming — After years of chasing revenue and subscriber growth, streaming services plan to increase prices and demonstrate to investors they can turn a profit.

  • Japanese 7-Elevens — 7-Eleven is refining its business amid underlying trends in the U.S. convenience store market, drawing inspiration from its Japanese stores.

  • Nike’s Big Miss — Nike admits to underinvesting in the road-running scene at a time when run clubs are growing in popularity.

  • The Severe Risk of Battery Fires from Electric Vehicles—Battery-related fires from EVs can require 45 times the water needed to extinguish a gas-powered car.

To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan