Magnolia Bakery’s tasty cupcakes are a big part of its success, but the NYC business owes much to the celebrity factor.

Carol Schroeder, author of Specialty Shop Retailing, credits Magnolia’s rise to being “in the right place at the right time.” She says much of its success was also based on location. Being situated in the media hub of New York helped Magnolia to become a cultural phenomenon. Had it been located in Peoria, Ill., no matter how tasty the cupcakes, no one may have noticed.

Part of Magnolia’s success stems from America’s celebrity fixation. After “Sex and the City” discovered it, scenes followed in “The Devil Wears Prada,” “Prime” and “Saturday Night Live.” Adding to the momentum is the “Sex and the City” bus tour, which includes a stop at Magnolia’s and a “free” cupcake.

Source: Investors.com