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How Baked By Melissa CEO Turned Financial Woes Into Success

Baked By Melissa Founder With Cupcakes

It was a dark day in 2008 when Melissa Ben-Ishay was fired from her job as a media planner. Being just 24 and newly unemployed in an economy wracked by recession was upsetting, to say the least.

So, Ben-Ishay did what she always did when upset. She retreated to her kitchen in the Murray Hill section of New York and started baking.

“When I called my brother crying, he told me to go home and bake my cupcakes, and we would make a business out of it,” Ben-Ishay told The Food Institute. That conversation was the start for Baked By Melissa, the New York bite-sized cupcakes business that has grown from a home-based business to an operation with 13 locations in New York and New Jersey.

“I treat baking like arts and crafts, except you get to eat your project. I see the cupcake as my vessel for flavor. I draw inspiration from the carefree culture of the 60’s, as well as from nostalgic desserts and memories from my childhood. Then I transform those concepts into cupcakes,” Ben-Ishay said.

At first, she would bake in her apartment, then deliver orders herself, riding the subway throughout Manhattan.

Among the original flavors are s’mores, tie dye (a salute to the Grateful Dead) and chocolate chip pancake. From there, the menu includes psychedelic snowcap, mint cookie and red velvet. She even offers macarons.

The next step was hooking up with a caterer. After that, she opened an online store, gained access to a commercial kitchen attached to Café Bari, and in March 2009 opened her first storefront – a pick-up window at Café Bari. She estimates she has sold more than 400 million cupcakes.

Ben-Ishay describes her packaging as innovative and the company stays away from fleeting trends.

Being a woman in this business, she said, actually was an advantage because “men are overconfident.”

“I struggled with imposter syndrome for a long time,” she said.

“I didn’t become the CEO of the company that bears my name until 2019, and even then, I didn’t think I could do it!  Once I became a mom, that also changed the game. After I had kids, I felt superhuman,” she said.

Foremost among Ben-Ishay’s concerns is maintaining quality.

“I personally visit the bakery to ensure every cupcake is iced, stuffed, and topped to perfection,” she said.

“I care deeply about our customer experience.”

“Maintaining these standards is one of the reasons I’ve avoided acquisitions, as they can lead to a decline in brand quality as companies opt for cheaper ingredients to boost profit margins. Consumers notice when a brand maintains its quality,” Ben-Ishay added.

Ben-Ishay’s plans for future growth include paid brand partnerships and sponsored content to increase awareness and customer loyalty.

“Since COVID, our social media following has skyrocketed to over 4 million across all platforms, an increase of over 6,000%, and this has opened up brand new revenue streams for the brand. So far, we’ve worked with brands like Weight Watchers, Claussen, Squishmallows, Native and Tabasco – all of which have been very successful,” she said.

Ben-Ishay had a few pointers for other women seeking to start their own businesses.

“Lean on your friends and family during the hard times,” the CEO said.

“Surround yourself with people who possess the skills you don’t have, know what you don’t know, and build a team. At the end of the day, you can do anything.

“That’s the advice I’d give to other women: Keep going and don’t be afraid of making mistakes along the way. That’s the only way you’ll grow.”


The Food Institute Podcast

How are macro-economic factors and changing consumer preferences impacting the natural grocery sector? City National Bank’s Justin D’Affronte steps in as guest host as he speaks with Mother’s Market CEO Dorothy Carlow about inflation, tariffs, consumer preferences, and more.