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Old 07-08-2014, 04:09 PM
 
Location: Chapel Hill, N.C.
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I don't think bakeries will ever be passee but I always wondered how a shop that only makes cupcakes could stay in business.

Crumbs, the cupcakery that couldn’t, closes up shop - The Washington Post
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Old 07-08-2014, 05:22 PM
 
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I couldn't understand the cupcake craze in the first place.
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Old 07-08-2014, 05:36 PM
 
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I've had Crumbs cupcakes. They were nothing special.
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Old 07-08-2014, 05:42 PM
 
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Quote:
Originally Posted by no kudzu View Post
I don't think bakeries will ever be passee but I always wondered how a shop that only makes cupcakes could stay in business.

Crumbs, the cupcakery that couldn’t, closes up shop - The Washington Post
My guess is it's the going public & expansion that brought it down. One shop run by the baker can change up much more quickly and doesn't have to meet the shareholders' demands. The ingredients are fairly cheap so there aren't great economies of scale in ratio to the rent loads on a small chain. Dunkin' Donuts can stay in biz because they got a lot of their real estate when it was much cheaper to come by.
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Old 07-08-2014, 07:23 PM
 
Location: San Antonio, TX
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Cupcake shops were a popular business for a few years because it doesn't take much skill at all to bake and decorate a cupcake. I'm not surprised to see the craze ending.

I think also when the economy is not going well, people are more likely to want to indulge in something decadent and sweet as a snack. Once things look up financially, the trend is toward health foods.
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Old 07-08-2014, 07:55 PM
 
Location: Chapel Hill, N.C.
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Quote:
Originally Posted by weezycom View Post
My guess is it's the going public & expansion that brought it down.
This is exactly what happened according to several business reports I've read today. over 800 full and part time employees have lost their jobs cause of poor management and too fast expansion. Pity- not about Crumbs closing- I make my own and never even heard of them before today- but all those lost jobs.
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Old 07-08-2014, 08:42 PM
 
Location: Alaska
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I have watched DC Cupcakes on Netflix - a goofy and entertaining look into their business (perhaps right when they were going public [2010- ]).

A family-owned business going out-of-business is sad - perhaps, in hindsight they should have just kept it in the family.
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Old 07-08-2014, 09:00 PM
 
14,969 posts, read 8,536,771 times
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Quote:
Originally Posted by no kudzu View Post
This is exactly what happened according to several business reports I've read today. over 800 full and part time employees have lost their jobs cause of poor management and too fast expansion. Pity- not about Crumbs closing- I make my own and never even heard of them before today- but all those lost jobs.
Adam Hartung from Forbes had an exceptional piece on the Crumbs failure.

Basically, management failed to anticipate the changing public taste for food items, especially sweets. I remember Krispy Kreme when it first expanded across the country, there were huge lines everywhere for their donuts. Then people got tired of it, and KK crashed. I think it's made a comeback not too long ago though.

Expansion probably didn't help either.

I do like what Adam says about the concept of business owners and passion. There's this belief that passion alone is what will make people succeed in business. Yet that same passion is what creates business owners to blindly run their businesses to the ground, as they fail to anticipate changing trends and tastes (hubris).
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Old 07-08-2014, 09:09 PM
 
Location: Chapel Hill, N.C.
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Krispy Kreme is still very popular in the South.
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Old 07-08-2014, 09:13 PM
 
Location: Mass
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everyone knows pie is the current thing.

Good commentary on NPR today regarding innovation and food trends and diversification.
Is The Cupcake Craze Coming To An End? | Here & Now

And the New Yorker before the fall...
Sophie Brickman: A Food-Trend History Tour, with David Sax : The New Yorker
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