Expensive Cupcakes: A Fading Fad?

'Wall Street Journal' thinks the market is crumbling
By John Johnson,  Newser Staff
Posted Apr 17, 2013 12:08 PM CDT
These are called "chocolate-coconut jumbo pie cupcakes."   (Photo: Business Wire)

(Newser) – Hard as it may be to believe, the popular fad of paying dearly for a fancy cupcake might be fading at last, reports the Wall Street Journal. The paper sees all kinds of signs of trouble for the once-booming gourmet cupcake market, starting with the fact that shares of industry bigwig Crumbs Bake Shop are down from $13 in 2011 to $1.70. The chain, whose cupcakes can fetch $4.50 apiece, forecasts $57 million in sales this year, down from a previous estimate of $73 million.

"The novelty has worn off," says a restaurant industry analyst for Trinity Capital. The Journal traces the craze back a decade, when Sex and the City featured New York's Magnolia chain. Since then, the market has steadily grown, with both big chains and mom-and-pop stores saturating the market. As a result, "demand is flat," says another analyst. "And quite frankly, people can bake cupcakes." Click for the full story. (Read more cupcakes stories.)

My Take on This Story
Show results without voting  |  
53%
8%
4%
21%
4%
11%