Is it the beginning of the end for the cupcake? The Wall Street Journal takes a look at the steady decline of America's once-fevered obsession with cupcakes. After Crumbs Bake Shop — a cupcake chain with 67 locations — announced last week that sales are down 22% from projections, their stock fell 34%. (Crumbs went public back in 2011.) Where did the love go? A spokesperson for industry number crunchers Technomic tells the WSJ, "Demand is flat. And quite frankly, people can bake cupcakes."
Backlash against the cupcake is nothing new: there have been cupcake haters ever since Magnolia Bakery first appeared on Sex and the City. It seems like everyone has spoken out against the small baked good, from Laura Ingraham to Duff Goldman. But it seems the cupcake backlash has reached the masses: according to Cynthia Hankerson, owner of Jersey City, NJ cupcakery Cupcake Salon, Saturdays used to net her $600-$700. These days, "we're lucky if we get $300."
Crumbs has brought in $10 million in investments, which Crumbs president/CEO Julian Geiger says "will give us the money to execute our plans to move into the suburban mall arena where we have experienced growth." Suburban malls are considered a growth market? Ladies and gentlemen, it is officially time to start placing your bets for the next cupcake.