Georgetown Cupcake, Georgetown and Bethesda

[JDawgBBall9]

They were selling at Merriweather Post Pavillion at Sunday's festival, I think I saw the price as 2 for $5. I don't know if it was specific to that day or they are making it a permanent menu item.

[monavano]

Delivery inside the Beltway for a minimum of one dozen (I order 2 dozen). Mr. MV works in Courthouse, so just across the river and a great treat for his birthday. He feels all special and such

[ktmoomau]

He feels all special and such

Well that is what is important! My husband just adores Georgetown cupcake, I will have to remember that for his birthday, although his new office tends to do all sorts of fun stuff for it's employees so they might do something cool. They already have fresh fruit Wednesdays and free ice cream Fridays. But that is an excellent idea. He is addicted to the key lime ones.

[rbh]

we're walking along newbury street in Boston taking in the sights and sounds.... and then there is Georgetown Cupcake.... I guess I never realized that they had expanded beyond the area.....

[lekkerwijn]

Given the tv show and long lines I was surprised to see that they had been shut down by DC for $189,000 in unpaid sales taxes. Given how smart they are on PR you would think they would be smarter on their business management.

[jiveturk21]

Given the tv show and long lines I was surprised to see that they had been shut down by DC for $189,000 in unpaid sales taxes. Given how smart they are on PR you would think they would be smarter on their business management.

That is surprising, given that they should have money to burn at this point, but I will always attest to the fact that running a business is way harder than simply having a good idea (or being a good cook or having good PR).

[Andelman]

The craziest thing about that whole story is that the owe roughly $65,000/month in sales tax, which is 6% of their monthly sales. That translates to to about 1.1 million in sales monthly. That is a lot of f*cking cupcakes! And that is just for the DC store!

I am sure the tax thing was just a glitch. I am pretty confident they are perfectly fine in the financial side of running a business.

[darkstar965]

That is surprising, given that they should have money to burn at this point, but I will always attest to the fact that running a business is way harder than simply having a good idea (or being a good cook or having good PR).

Big +1 on the above. I've railed about the cooking/bus mgmt divide on multiple threads over the past few years. This still surprises me--not because they're "smart on PR" or have "cash to burn" but, rather, because one of the sisters has a banking background and ostensibly has way-better-than-average financial management acumen for the food service industry.

The craziest thing about that whole story is that the owe roughly

$65,000/month in sales tax, which is 6% of their monthly sales. That

translates to to about 1.1 million in sales monthly. That is a lot of

f*cking cupcakes! And that is just for the DC store!

I am sure the tax thing was just a glitch. I am pretty confident they are

perfectly fine in the financial side of running a business.

Something odd about this story though guessing Jason's thought is as likely to be correct as any. The revenue # is likely even a bit conservative. You can back it out in a way that gets closer to 1.5 or 2 given their pricing, a wholesale/catering biz and average daily retail volume based on statements they've made in interviews and the persistence of long lines at both shops whatever the time of day/day of week.

[thetrain]

The craziest thing about that whole story is that the owe roughly $65,000/month in sales tax, which is 6% of their monthly sales. That translates to to about 1.1 million in sales monthly. That is a lot of f*cking cupcakes! And that is just for the DC store!

I am sure the tax thing was just a glitch. I am pretty confident they are perfectly fine in the financial side of running a business.

Actually that's with the penalty - without its more like $50,000, so more like $830,000, but yea still a lot of cupcakes.

[darkstar965]

Actually that's with the penalty - without its more like $50,000, so more like $830,000, but yea still a lot of cupcakes.

Amount that was owed (and now is settled) isn't necessarily the total tax burden and it doesn't account for any seasonality. If you do a bottoms up analysis, easy to get revenue numbers in excess of $1.2MM per store.

[DonRocks]

The craziest thing about that whole story is that the owe roughly $65,000/month in sales tax, which is 6% of their monthly sales. That translates to to about 1.1 million in sales monthly. That is a lot of f*cking cupcakes! And that is just for the DC store!

I am sure the tax thing was just a glitch. I am pretty confident they are perfectly fine in the financial side of running a business.

I'm with you, Jason. One time does not a pattern make, and being behind for only three months in any bureaucratic endeavor can be a matter as simple as changing software, accounting firms, forgetting to do something, etc. It sounds like a lot, but remember when Michael Jordan was accused of having a "gambling problem" because he lost $10,000 at a casino? Or was it $100,000? Either way, it doesn't matter - he doesn't have a gambling problem; he's just rich. We'd all do well to let this go.