Baked by Melissa’s founder was fired when she was 24. Two decades later, she’s ‘so freaking thrilled’ to step down as CEO

(SeaPRwire) –   In an era dominated by protein tracking and fiber counting, it is easy to forget a time when baked goods were the ultimate trend.

A decade ago, however, there was a massive cupcake craze. People would queue around city blocks for treats from vending machines; a company specializing in custard-filled jumbo cupcakes went public at $13 per share, and consumers clamored to pay $45 for a box of miniature tie-dye cupcakes. The mania was immense, with the industry moving 669 million units in one year. Yet, much like a poorly baked cupcake, the trend collapsed as quickly as it rose. Crumbs went from a Nasdaq favorite to bankruptcy in just three years, and Sprinkles, the pioneer of the cupcake ATM, closed its doors only weeks ago. Almost every gourmet cupcake business from that period has failed—with one notable exception.

Melissa Ben-Ishay launched Baked by Melissa in 2008 after being let go from her role as an assistant media planner at age 24. Eighteen years and over 500 million bite-sized cupcakes later, she is stepping down as CEO—and for the first time, she confirms the company is open to being acquired.

Ben-Ishay will return to the role of president—a position she held prior to the board appointing her CEO in late 2019—while current CFO Sanjay Khetan assumes the role of chief executive. In a joint interview, Ben-Ishay explained that she brought Khetan on board with the goal of finding her successor. On her first day as president rather than CEO, Ben-Ishay was candid about the change: “I am so freaking thrilled that I am no longer needed in that seat,” she stated, “so I can focus on the areas of the business that I can uniquely drive.”

This willingness to sell represents a change in strategy for Ben-Ishay. In a 2025 interview with the Food Institute, she mentioned that maintaining quality was a reason she had “avoided acquisitions.” When asked about that comment, she noted she did not recall saying it, but acknowledged her evolving perspective. “It’s something we’re definitely interested in exploring and working towards,” she said, adding that the company receives acquisition inquiries regularly. “Every day we get offers in my inbox,” she noted.

When asked how Baked by Melissa succeeded while its contemporaries failed, Ben-Ishay pointed to the bite-sized, mess-free format and a superior shipping model. Furthermore, she credited a disciplined approach to growth. “We didn’t try and grow too quickly,” she explained. The company currently operates nine retail locations, offers nationwide shipping, and reports consistent year-over-year revenue growth. While competitors like Crumbs pursued public listings and Sprinkles opted for private equity, Baked by Melissa remained private, raising only $6 million in outside capital over its 18-year history while maintaining a lean operation.

Finding viral success beyond cupcakes

Ben-Ishay had been CEO for only three months when the COVID-19 pandemic forced New York stores to close. “I was scared out of my mind,” she admitted, unsure of how to manage the business’s scale. She has been transparent about the imposter syndrome that marked her early career, having previously expressed doubts about whether she deserved the CEO title. When asked if she ever felt the company had outgrown her, she was firm: “Never,” she said.

During her first year as CEO amid the pandemic, she reported that e-commerce revenue grew by approximately 99% year over year. It was also during this time that Ben-Ishay inadvertently created a “business within my business,” going viral on TikTok for her Green Goddess salad recipe, which garnered over 27 million views. Her social media presence has since led to a brand partnerships division, two cookbooks—including a New York Times bestseller—and collaborations with brands like Oatly, Squishmallows, and Ferrero.

Ben-Ishay’s TikTok content is chaotic—featuring flying food, noisy children, and beeping smoke detectors—capturing the “overachieving-burnt-out-mom” aesthetic that resonates with many millennials. It clearly connects with a large audience, as Baked by Melissa boasts nearly 3 million followers on TikTok. During the interview, the atmosphere was similarly informal; Ben-Ishay joined from a car, occasionally pausing to chat with others while Khetan handled questions.

For Ben-Ishay, this is simply part of being an ambitious, high-achieving individual. “I am a mom with young kids. I am a creator. I am a cookbook author—New York Times bestselling cookbook author—and an executive co-founder of Baked by Melissa,” she said. “Today, president and co-founder. Yesterday, CEO and co-founder.” She noted that she wears “many, many hats,” adding, “I have my priorities straight: I think this transition is not only best for Baked by Melissa, but best for me so I can breathe, like, a tiny bit.”

The future of the brand’s social media presence—a key marketing asset built largely on Ben-Ishay’s personal content—is a central part of the transition. However, she expects the change to provide more, not less, time for creation. She has resisted the “influencer” label despite her growing following. “I’m not an influencer by trade,” she said. “I have this greater responsibility, not only to Baked by Melissa, but also to my customer.”

The company’s history has always been a family endeavor. Ben-Ishay’s brother, Brian Bushell, co-founded the business and served as its initial CEO until 2016. He remains a shareholder and participates in high-level strategy, according to Ben-Ishay. She declined to comment on a books-and-records inspection lawsuit reportedly filed by Bushell against the company. (Bushell did not respond to a request for comment). Her husband, Adi Ben-Ishay, also works at the company and will continue to report to Khetan.

Khetan noted that the partnership is effective because of their clear division of labor: Ben-Ishay manages brand and creative, while he oversees operations and finance. “The potential to create more value over the next couple of years is extraordinary,” he said.

Ben-Ishay offered a final remark: “Baked by Melissa—we make bite-sized stuffed cupcakes in a variety of flavors that make you feel like a kid again, and we ship nationwide,” she said. “And hop to it, because Easter is on its way.” Even after 18 years, she is still focused on the sale.