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Crumbs’ Failure Does Not Signal The End Of America’s Love Affair With Cupcakes

July 11, 2014: 12:00 AM EST
The recent much-publicized failure of the Crumbs cupcake bakery chain sent a shockwave through the retail baking industry, but it doesn’t mean consumers no longer love cupcakes. On the contrary, Crumbs failed because it went public and expanded too fast, and because it had a “suspect” business model. It baked the product in one location (Brooklyn, N.Y.) and shipped it frozen to its 48 stores nationwide. A Philadelphia bakery owner said that involves a “defrost process” that “doesn’t work well”. An NPD Group analyst said Crumbs went bust because of market saturation, high overhead, and high prices ($60 for a dozen). Another bakery owner ventured that Crumbs simply didn't offer enough product variety, like fresh desserts.
Erin Arvedlund, "Hold the obits on cupcakes, say local purveyors", The Philadelphia Inquirer , July 11, 2014, © Philadelphia Media Network (Digital) LLC
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