Fans mourn closure of cupcake vending machine company Sprinkles Cupcakes
Jan 2, 2026, 4:19 PM
FILE - A newly-installed 24-Hour Cupcake "ATM," that will be continuously restocked to dispense fresh cupcakes, is seen right as patrons enter Sprinkles Cupcakes in Beverly Hills, Calif., March 5, 2012. (AP Photo/Damian Dovarganes, File)
Credit: ASSOCIATED PRESS
(AP Photo/Damian Dovarganes, File)
NEW YORK (AP) — Sprinkles Cupcakes, a company famous for selling sweet treats in vending machines known as “cupcake ATMs,” has shut down after 20 years of operation around the United States, according to its former owner.
“Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go,” said Candace Nelson, who started the company after she lost her job in 2005. The closure was announced Dec. 30.
Nelson started Sprinkles Cupcakes in her own kitchen, and the first location was in a small Beverly Hills storefront that had previously been a sandwich shop. The brand would go on to ascend to national fame, and fans took to social media following the company’s announcement to lament the closure.
The company’s cupcake-dispensing machines in malls and airports briefly went viral on TikTok for the not-so-subtle “I love Sprinkles” jingle that played repeatedly while a mechanical arm delivered the dessert.
The company no longer has any products for sale on its website, which also has removed all operational locations across the country.
Nelson sold her business to private equity firm KarpReilly LLC in 2012 after the company had expanded to 10 locations across the country. The firm owns dozens of other companies for products including a health food home delivery service, kombucha and protein wellness shakes.
KarpReilly did not respond to an emailed request for comment Friday evening. Neither the firm nor Nelson provided a reason for the cupcake company’s closure.
Private equity has dramatically expanded its influence in restaurants over the last decade, investing $94.5 billion between 2014 and 2024, according to data from capital market company PitchBook.
Some outraged Sprinkles Cupcakes fans said on social media that the closures were part of a larger trend where private equity firms purchase restaurants and retail brands — like Red Lobster or TGI Fridays — that later file for bankruptcy or close altogether.
