Magnolia Bakery Is in Its Private Equity Era. And It’s Determined to Get It Right

NEW YORK – There’s an art to frosting a Magnolia Bakery cupcake. To get the topping just so, you have to turn the cupcake with one hand while shaping a teardrop of buttercream frosting into a perfect swirl with a metal icing wand. New hires and franchisees master the technique by practicing on 3-D-printed cupcakes at the company’s training center in Midtown Manhattan.

In early July, I met Alex Nessenthaler, who has plans to open Magnolia Bakery’s first franchise in Louisville, Kentucky in August. She’s about a month into Magnolia’s six-week training program alongside her head baker and general manager.

“So many steps go into making a simple cupcake,” says Nessenthaler, who discovered Magnolia when she was working at Tory Burch from 2012 to early 2025, most recently as senior vice president for North American retail. “I have such a new appreciation for pastries and the culinary industry as a whole,” she says.

The push into franchising is part of a new chapter for the 30-year-old New York City bakery chain, which was purchased by the private equity firm RSE Ventures for an undisclosed sum in 2021.

Right now, Magnolia, which started as a single West Village Bakery in 1996, has about a dozen company-owned locations. They also have more than 40 overseas franchise locations and a small CPG business of frozen-to-thaw banana pudding pints available through delivery services like Wonder, on airlines, and in airport lounges.

In 2025, revenue from Magnolia’s retail bakery business was estimated to be between $40 million and $50 million. The company declined to share its overall revenue, which includes its franchising and CPG operations, but said it has doubled over the five years since RSE’s purchase.

“When we were working on the deal to acquire them, the vision was: How do we bring banana pudding to the masses without compromising everything that makes the brand so special and scarce?” says Matt Higgins, the CEO of RSE Ventures, which he co-founded with Stephen Ross.

The hardest part of franchising any beloved brand is consistency—making sure a cupcake in Louisville tastes like the one in the West Village. Can Magnolia and RSE scale franchising without losing what made it a cult favorite in the first place? Inc. spoke to investors and senior executives at the company to find out what it takes to bring a beloved brand to the masses, and why this could be the model for other legacy chains.

– Chief Brand Officer and Chief Baking Officer Bobbie Lloyd

About Magnolia Bakery

Magnolia Bakery is the iconic bakery born and baked in New York City that’s known for its classic American desserts including its World-Famous Banana Puddings, cakes, cupcakes, and brownies. Magnolia Bakery baked goods are made with an obsession with detail to ensure every bite is a whimsical delight. Since opening its first bakery in NYC in 1996, Magnolia Bakery continues to expand; with many of their best-selling products available in all lower 48 states and in over 40 bakeries internationally and a thriving eCommerce business so customers can ship its goods to any doorstep nationwide.

Read more about Magnolia’s move to private equity here.