Sprinkles Cupcakes Takes Control of Inventory

Written by Anna Wolfe for Hospitality Technology

How many pounds of flour does it take to bake 12 million cupcakes a year?

Sprinkles Cupcakes knows, thanks to its use of restaurant management solution Compeat to manage its inventory and accounting. The 23-store bakery chain implemented Compeat last fall.

Since its founding in 2005, Sprinkles Cupcakes has expanded to 23 locations. The secret to this Austin, Texas-based bakery’s success lies not only in its cupcake recipes but also the company’s decision to integrate its software to streamline daily operations.

The bakery uses Compeat, a restaurant management solution, to manage each bakery’s inventory and accounting needs. The fully integrated software allows Sprinkles to have total control over each moving part in every department by nailing down financial reporting, payroll and cost control.

“Twelve million cupcakes is a lot to track. We wanted a tool that would be fast and easy to use and help us on supply side. For us to be able to track the millions of pieces we sell, we need a nimble, agile software,” says Dan Mesches, CEO. “When you are trying to scale across the country, a software solution that can aid management and accounting is huge.” Mesches, who joined the company one-and-a-half years ago, had used Compeat when he was CEO of Hopdoddy Burger Bar in Austin.

Almost a year after installation, Mesches and his team like the visibility the system provides. It’s been a “clear learning tool for our team at all levels,” he says. “We can see what a difference an ounce can make in all the products as well as cost. That kind of insight helps us lower our food costs.

“We can really drill down and see our waste,” he adds. “In bakery, waste is part of the business. We want product until we close, and we bake fresh products every day.”  The system helps Sprinkles track inventory. For example, “Frosting may be made in other unit and moved over (to another location). Compeat helps us track all that.”

Overall, the Sprinkles team “feels great” about Compeat.

“The things that make the work experience better for our staff, makes it better for our guests and allows us to continue our growth,” says Mesches.

Sprinkles plans to add more locations including kiosks. The bakery, which opened its first kiosk six years ago, currently operates 16 kiosks including staffed kiosks and a cashless kiosk outside of Madison Square Garden in New York City. At the University of Southern California, there’s a freestanding cupcake ATM. The kiosks, which Mesches describes as “Instagram-able moments” … “make it easier for guests to get our baked goods, which is incredibly important to us.”

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