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- 🤯 The Rise and Fall of Twelve Cupcakes: Singapore’s Sweetest Failure
🤯 The Rise and Fall of Twelve Cupcakes: Singapore’s Sweetest Failure
From celebrity founders to courtroom fines — how a cupcake craze turned into one of Singapore’s most shocking F&B collapses.
Admond Lee
November 09, 2025
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Today’s story is about Singapore’s once-beloved cupcake empire that rose fast, sold millions, then crumbled under legal trouble and mismanagement — the bittersweet fall of Twelve Cupcakes. Let’s get to it! 🚀
Today at a Glance:
☠️ 1 Failed Startup → Twelve Cupcakes
⚠️ 2 Mistakes → Weak governance after exit
🧠 3 Lessons Learned → Growth without structure is a recipe for disaster
🔗 The Runway Insights → How to cold DM investors
💰 Southeast Asia Funding Radar → Video Rebirth bags $50M to help creators generate high-quality videos with AI
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☠️ 1 Failed Startup: Twelve Cupcakes
🚀 The Rise of Twelve Cupcakes
🇸🇬 Founded by a husband-and-wife duo, Daniel Ong (former radio DJ) and Jaime Teo (former Miss Singapore Universe and actress), Twelve Cupcakes is a gourmet cupcake bakery based in Singapore, offering handcrafted cupcakes with unique flavours tailored to Asian tastes.
🧁 Founders’ Story
Daniel Ong and Jaime Teo were a celebrity couple in Singapore who turned a home-baking hobby into a full-blown business.
Jaime loved baking cupcakes and Daniel saw a market gap — Singapore didn’t have a proper gourmet cupcakery back then.
So they launched Twelve Cupcakes in July 2011 with a tiny store at United Square and quickly drew crowds with their less-sweet, Asian-friendly flavours.
Why “twelve”?
😂 Well, Daniel was an avid bowler and 12 strikes means a perfect game – plus there are 12 months in a year and 12 cups in a baking tray, so they figured it was a catchy name for a cupcake shop.
The Problem — 🍯 Most cupcakes available in Singapore were overly sweet, mass-produced, and lacked quality or creative appeal for local consumers.
The Solution — 🧁 Twelve Cupcakes offered freshly baked, artisanal cupcakes that were less sugary, with elegant presentation, creative seasonal flavours, and a trendy, Instagrammable store concept that drew in crowds.
 Twelve Cupcakes’ co-founders (Daniel Ong & Jaime Teo) | From day 1, the demand was crazy. The first outlet opened at United Square Mall (Novena) in mid-2011 with just two staff. But word spread fast. Really fast. 🤯 In the first few months, they often sold out of cupcakes by midday – Singapore had never seen a cupcake craze like this. |
🤑 So within the first year, they opened 3 more outlets and were reportedly selling 3 million cupcakes in 2011.
By 2013, Twelve Cupcakes went international — they franchised the brand to partners abroad, opening stores in cities like Jakarta, Taipei, Kuala Lumpur and Hong Kong.
The couple didn’t stop at cupcakes either. In 2014, they launched a spin-off dessert café called Dulce & Sucré by Twelve Cupcakes at Orchard Gateway, offering pies, parfaits, tiramisu and other treats on top of the usual cupcakes.
⛰️ At its peak, Twelve Cupcakes’ traction was undeniable:
Opened 17 outlets across Singapore
Over 40 franchise stores across 6 countries (including in Jakarta, Taipei, Hong Kong, and Kuala Lumpur)
Signature cupcakes like Red Velvet with cream cheese and candy heart became icons
Media acclaim and strong brand loyalty led to millions of cupcakes sold
💰 In December 2016, the founders sold Twelve Cupcakes to India's Dhunseri Group for S$2.5 million, just months after their divorce — marking the company’s peak in brand value, regional footprint, and market buzz.
📉 The Fall of Twelve Cupcakes
But behind all the frosting and fame, cracks were forming beneath the surface.
From unpaid wages to mounting losses, the cracks beneath the frosting began to show — and by the time anyone noticed, it was too late to save the cupcake empire.
📌 Here’s what happened to Twelve Cupcakes:
We never receive any payment for our last month of labor. How to feed our families and pay rent and other bills without receiving a salary?
We are only informed via WhatsApp at 8pm that our employment had been terminated effective immediately, with no payment to be received until the completion of liquidation, anticipated to take approximately six months.
🧁🧁🧁 Twelve Cupcakes were everywhere
Jul 2011 — 🧁 Twelve Cupcakes founded by Daniel Ong and Jaime Teo.
First shop opened at United Square in Singapore, offering cupcakes tailored for local taste.
2013 — 🧁🧁🧁 Opened franchise stores in Jakarta, Taipei, Kuala Lumpur, and Hong Kong, taking the Singapore cupcake craze regional.
2014 — Launched Dulce & Sucré by Twelve Cupcakes, a dessert café at Orchard Gateway, as the founders experimented beyond cupcakes.
The café was later converted back to a cupcake outlet.
Aug 2016 — 💔 The founders’ personal relationship ended.
Daniel Ong and Jaime Teo divorced shortly before deciding to exit the business.
Dec 2016 — 💰 Following negotiations earlier in the year, Twelve Cupcakes was acquired by India’s Dhunseri Group for S$2.5 million.
The sale was completed in December after the founders’ divorce, with Dhunseri taking 100% ownership.
Jan 2017 — 🔥 News of the sale becomes public. At the time of acquisition, the cupcake chain boasted 17 outlets in Singapore and more than 40 outlets across 6 countries (including franchised stores in Asia).
The founders stepped back, remaining briefly as consultants for a year.
💸😡 Losses → underpaid staff → unpaid staff → dead
Dec 2018 — 🚨 Singapore’s Ministry of Manpower began investigating Twelve Cupcakes for labor law violations after receiving a tip about underpaid staff.
Dec 2020 — 👨🏻⚖️ Under new ownership, Twelve Cupcakes pleaded guilty to 15 charges of underpaying foreign employees in 2017–2018, offences carried over from practices of the previous management.
Jan 2021 — 👨🏻⚖️ The company was fined S$119,500 for underpaying 7 foreign workers a total of ~S$114,000 over 2 years.
It emerged that workers were promised higher salaries on paper but paid much less in reality.
Feb 2021 — Co-founder Jaime Teo pleaded guilty to 10 charges under the Employment of Foreign Manpower Act for failing to prevent the underpayment of employees between 2013 and 2016.
Mar 2021 — Jaime Teo was fined S$65,000 for the employment offences, as punishment for the wage violations that occurred when she was director of the company.
Co-founder Daniel Ong pleaded guilty to similar charges (10 counts) and was likewise fined S$65,000 for allowing foreign staff to be underpaid during his tenure.
2023 — ⚠️ Twelve Cupcakes’ business deteriorated.
The chain reported a net loss of S$463,618 in FY2023, which widened to over S$1.1 million loss in FY2024.
Revenue declined as well, reflecting increased competition and the fading cupcake trend.
29 Oct 2025 — ☠️ Suddenly, Twelve Cupcakes ceased operations and was placed under provisional liquidation due to insolvency.
Staff were informed only at the last minute, and around 80 employees lost their jobs overnight as all outlets shut down.
The once-celebrated cupcake chain is officially defunct.
Unfortunately, what began in 2011 as a sweet venture by a passionate couple turned into one of Singapore’s most famous dessert brands, only to be dragged down by mismanagement and misdeeds.
In the end, Twelve Cupcakes crumbled under mounting debts and controversies, closing its doors for good in October 2025.
Want to learn more about Twelve Cupcakes’ downfall?
⚠️ 2 Mistakes
The closure notice on the company’s website on Oct 30
Mistake 1: Scaled too fast without operational depth
🚀 When Twelve Cupcakes took off, the founders did what many first-time entrepreneurs dream of — they hit “expand” at full throttle.
New stores sprouted across Singapore, then Hong Kong, Kuala Lumpur, Taipei, Jakarta… all within just a few years.
The brand’s popularity exploded faster than its systems could handle.
But beneath the sugar rush of growth, the foundation seemed to be weak — no robust HR processes, compliance systems, or operational checks.
🙏🏻 As they scaled, problems that seemed small at first — like manual payroll handling or inconsistent staff training — quietly compounded. Without proper oversight, underpayment practices persisted for years, unnoticed by auditors or senior management.
Expansion wasn’t the villain here — lack of operational depth was.
This is especially true in F&B businesses.
Every new outlet or customer multiplies complexity — more suppliers, more staff, more laws, more risk. If your internal systems don’t grow in tandem, chaos scales faster than revenue.
Mistake 2: Weak governance before & after exit
☝🏻 Before the exit:
Daniel Ong and Jaime Teo were so busy growing the brand that they missed (or ignored) what was happening behind the counter.
Between 2013 and 2016, foreign staff were being underpaid, sometimes forced to “refund” part of their salaries in cash.
It wasn’t a one-off mistake — it was an operational blind spot that became a legal liability.
The founders were later charged and fined S$65,000 each for these violations.
✌🏻 After the exit:
The new management (Dhunseri Group) inherited those broken systems and made them worse.
Instead of cleaning house, the wage violations continued until 2018, leading to another S$119,500 fine against the company.
Governance issues persisted both before and after the 2016 acquisition, as reflected in the separate fines imposed on the founders and on the company.
Reputation took a massive hit — a beloved “homegrown success” was suddenly associated with worker exploitation. Customers turned away, employee morale collapsed, and by 2025 the brand was in provisional liquidation.
🧠 3 Lessons Learned
One of the Twelve Cupcakes’ employees (Geraldine Eroles) posted on LinkedIn to highlight how employees were affected by its sudden shutdown
Lesson 1: Growth without structure is a recipe for disaster
In F&B, scaling means multiplying every operational variable — staff management, supply chains, kitchen workflows, and rent negotiations.
Twelve Cupcakes nailed the demand side but never professionalised the delivery side. When they went regional, they didn’t have standardised processes or leadership layers to support it.
🌮 Key Takeaways:
💪🏻 Systemise your backend early
Create standard operating procedures (SOPs) for hiring, payroll, food prep, and inventory before opening your 3rd or 4th outlet.
The goal is repeatability — your store in Orchard should run exactly like your store in Tampines.
🕺🏻 Hire operators before marketers
In early F&B, founders often chase marketing buzz (collabs, influencers) before operational depth.
Hire a seasoned operations manager or HR head early. They may not “grow revenue,” but they’ll prevent your systems from collapsing.
🧑🏻💻 Adopt scalable tech
Tools like POS-integrated inventory tracking, cloud-based HR systems, or scheduling software (Deputy, Talenox, Xero) can automate repetitive backend work.
Lesson 2: Protect yourself with strong governance
Governance isn’t paperwork — it’s protection. Whether you’re running a bakery or a SaaS startup, your HR, payroll, and compliance systems define your brand’s integrity.
🌮 Key Takeaways:
✅ Audit before you scale or sell
Make independent HR and compliance audits part of your quarterly reviews — not a crisis response.
For F&B businesses in Singapore, you’re required to pay foreign workers the salary you declared when you applied for their work pass.
If you deviate, you risk sanctions from the Ministry of Manpower (MOM).
Twelve Cupcakes staff were promised S$2,200-2,600 but paid S$200-1,200 less.
🙏🏻 Don’t outsource ethics
Founders can delegate operations, but not accountability.
Build a “no short-cuts” culture early.
🧐 Deeper due diligence (for acquirers)
When doing due diligence, don’t just check revenue — check payroll records, employment contracts, and whistleblower channels.
You inherit not only assets but also liabilities.
Lesson 3: Financial discipline matters more than vitality
⭐️ Many F&B founders fall into this trap — chasing visibility over viability.
They expand to “look big,” not to “earn more.” Twelve Cupcakes’ financials after the acquisition told the story — mounting losses from FY2023 to FY2025, with declining revenue and rising liabilities.
The lack of cash discipline turned a profitable brand into an unsustainable business.
🌮 Key Takeaways:
💵 Track unit economics relentlessly
Before opening a new outlet, ask: “Can one store sustain itself at 20% margin?”
If not, expansion multiplies loss, not profit.
🤑 Set non-negotiable financial KPIs
Gross margin >50%, rent-to-revenue ratio <15%, manpower cost <25% — use data, not “gut feel,” to decide growth pace.
🧠 Separate brand vanity from business sanity
Just because a brand is loved doesn’t mean it’s lucrative.
Twelve Cupcakes had queues and press coverage — but its P&L was quietly crumbling.
🔗 The Runway Insights
💰 Southeast Asia Funding Radar
Video Rebirth bags $50M to help creators generate high-quality videos with AI (Link)
Mantayay raises $5M to expand their regional creator network (Link)
Secai Marche raises $6M to build a fresher and smarter food ecosystem in SEA (Link)
Rolo Robotics raises $3.4M to reinvent food retail with autonomous, staff-free kitchens (Link)
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That’s all for today
Thanks for reading. I hope you enjoyed today's issue. More than that, I hope you’ve learned some actionable tips to build and grow your business.
You can always write to me by simply replying to this newsletter and we can chat.
See you again next week.
- Admond
Disclaimer: The Runway Ventures content is for informational purposes only. Unless otherwise stated, any opinions expressed above belong solely to the author.
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