This $2 Billion Bakery Franchise Found That ‘Smaller Is Better’ and Is on Track to Hit 1,000 Stores
Inside the growth strategy of 29-year-old dessert franchise Nothing Bundt Cakes.
Never underestimate a Bundt cake.
KKR recently bought Nothing Bundt Cakes for $2 billion, according to QSR Magazine, and the bakery chain is on track to hit 1,000 stores by next year. The brand opened 128 new restaurants in 2025 and is projecting another 141 franchised openings in 2026, with 83 agreements already signed. It has roughly doubled in size every time it changes hands, going from 175 stores in 2016 to 390 under Roark Capital to 779 today.
What’s the growth secret behind this 29-year-old franchise? Size matters. Nothing Bundt Cakes steers franchisees toward locations under 1,800 square feet, where smaller stores generate $1,066 in revenue per square foot versus $645 for larger ones. Stores also tend to perform better the longer they’re open, and the brand has logged just one closure across all its locations over the past four years. With average net revenues of $1.48 million per bakery, the model has proven durable enough that KKR is now betting the house on the Bundt.
Never underestimate a Bundt cake.
KKR recently bought Nothing Bundt Cakes for $2 billion, according to QSR Magazine, and the bakery chain is on track to hit 1,000 stores by next year. The brand opened 128 new restaurants in 2025 and is projecting another 141 franchised openings in 2026, with 83 agreements already signed. It has roughly doubled in size every time it changes hands, going from 175 stores in 2016 to 390 under Roark Capital to 779 today.
What’s the growth secret behind this 29-year-old franchise? Size matters. Nothing Bundt Cakes steers franchisees toward locations under 1,800 square feet, where smaller stores generate $1,066 in revenue per square foot versus $645 for larger ones. Stores also tend to perform better the longer they’re open, and the brand has logged just one closure across all its locations over the past four years. With average net revenues of $1.48 million per bakery, the model has proven durable enough that KKR is now betting the house on the Bundt.
