The Wall Street Journal has a piece suggesting that the American cupcake craze may be slowing down or ending, using as its evidence declining sales at Crumbs, the 67-unit cupcake chain that expects its 2013 sales to be $57 million, as opposed to a previously estimated $73 million.
- KC's View:
The problems seem to be two-fold.
For one thing, Crumbs and some of its brethren expanded too quickly, though there are some chains that seem to have controlled their expenses and remain profitable.
But more importantly, Crumbs seems to be a one-trick pony - it makes cupcakes. At some point, the trend lines change, and the pony runs out of places to run.