Cupcake chain crashes

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kranky

Elite Member
Oct 9, 1999
21,014
137
106
ftfy. As evident by Krispy Kreme making a comeback from the brink of insolvency.

Muffins. Why hasn't anyone started a muffin chain yet? I mean seriously... we've had donuts, bagels, cupcakes, but nobody has started a muffin fad.

Just the tops, though.
 

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
http://online.wsj.com/articles/stic...shop-1404770884?mod=WSJ_hps_sections_business

The WSJ reports that Crumbs, a 50-store chain of cupcake stores, has gone under. Apparently it was the most prominent of the cupcake industry stores.

Did anyone actually think that cupcakes alone would make a sustainable business model? I'm actually surprised they lasted this long.

From IPO to out of business in 3 years. Flavor of the month, indeed.

What kills a lot of business is over expansion and exhaustion of capital, over leveraging. Capital is the fuel of business, no fuel you stall and crash.
 

KeithP

Diamond Member
Jun 15, 2000
5,661
198
106
WTH? Story behind a paywall? I guess I am the only one without a WSJ account.

I am sure the insiders with shares made a ton of money after the IPO. A business doesn't have to be successful to make at least some shareholders a lot of money.

As general concept, I see no reason why a cupcake store(s) can't be successful. Offer a variety of products in addition to the CC (muffins, croissants, coffee, tea).

Don't forget the meat cupcakes for the dinner/lunch crowd.
http://www.themeatloafbakery.com/

-KeithP
 

Imported

Lifer
Sep 2, 2000
14,679
23
81
I actually liked their cupcakes when I was last in Chicago.. much better than the shit Kara's, Sprinkles, Cako crap we get here. They were too large though.. could never finish more than half of one.
 

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
WTH? Story behind a paywall? I guess I am the only one without a WSJ account.

I am sure the insiders with shares made a ton of money after the IPO. A business doesn't have to be successful to make at least some shareholders a lot of money.

As general concept, I see no reason why a cupcake store(s) can't be successful. Offer a variety of products in addition to the CC (muffins, croissants, coffee, tea).

Don't forget the meat cupcakes for the dinner/lunch crowd.
http://www.themeatloafbakery.com/

-KeithP

I bet the IPO was used to pay back the VC folks back, it was not used to help provide capital for the company. Insiders unloading tons of shares making money. Brokers making money stuffing 401ks/annuities with the shit stock into retirement funds.

everyone wins
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
Do they sell franchise rights? Their wiki talks about getting into selling their products in other shops like starbucks. Curious if they utilized the Krispy Kreme model of screwing over franchisee's?
 

K1052

Elite Member
Aug 21, 2003
47,191
35,270
136
ftfy. As evident by Krispy Kreme making a comeback from the brink of insolvency.

I'm not talking about Krispy Kreme bullshit doughnuts. There are now 4 or 5 outposts for higher end doughnuts (run by larger local restauranteurs) within a 10 min walk from my home or office.
 

SMOGZINN

Lifer
Jun 17, 2005
14,218
4,446
136
I'm not talking about Krispy Kreme bullshit doughnuts. There are now 4 or 5 outposts for higher end doughnuts (run by larger local restauranteurs) within a 10 min walk from my home or office.

What exactly is a high end doughnut? Doughnuts are fairly simple things.
 

Jeff7

Lifer
Jan 4, 2001
41,599
19
81
Donuts are rarely more than $1 each, and they are much easier to eat than a $5+ cupcake.

Cupcakes should be cheap. If I want to spend $5+, I'll get a nice piece of cheese cake (pie?) or something that is easier to eat.
Very cheap, in some cases.

Krispy Kreme: Walk in, and they hand you a free doughnut. Yes, it's a fairly light doughnut, but they're made by a machine right there that keeps churning them out non-stop.




What exactly is a high end doughnut? Doughnuts are fairly simple things.
There's a local doughnut shop a few miles away. Word is that they have very good ones, too. But they also are only open 5am-noon. I did stop there at 10am once. Closed. :\

I guess they have a certain amount of stock they want to sell, and when they're out, that's it for the day. Maybe they're catering mainly to people who like getting up at 5am every day, or to the morning work rush.
 
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JEDIYoda

Lifer
Jul 13, 2005
33,982
3,318
126
None of the 3 cupcake stores in the area are ever open......how do you make money if you are never open for business?
 

ioni

Senior member
Aug 3, 2009
619
11
81
Donuts are rarely more than $1 each, and they are much easier to eat than a $5+ cupcake.

Cupcakes should be cheap. If I want to spend $5+, I'll get a nice piece of cheese cake (pie?) or something that is easier to eat.

How are cupcakes hard to eat? Cheese cake/pie requires a plate and utensils. Cupcakes don't require anything. And if they have an edible wrapper they're even easier to eat than a donut since you don't need to wash your hands after.
 

surfsatwerk

Lifer
Mar 6, 2008
10,110
5
81
How are cupcakes hard to eat? Cheese cake/pie requires a plate and utensils. Cupcakes don't require anything. And if they have an edible wrapper they're even easier to eat than a donut since you don't need to wash your hands after.

The great big ones are a pita and defeat the entire purpose of a cupcake.
 

nageov3t

Lifer
Feb 18, 2004
42,816
83
91
the problem with donuts is that (imho) they're really only good when fresh from the fryer, as opposed to a cupcake which can be perfectly great for several days (obv. refrigerated if the frosting contains cream cheese)
 

nageov3t

Lifer
Feb 18, 2004
42,816
83
91
I wonder if that annoying bitch that was in the Ink by Chase commercial who has a cupcake business will go down in flames next? Place is called Sweet Revenge.

https://www.youtube.com/watch?v=Bb3dnT4TUKk LMFAO! INK, INK, INK,INK.

this place? it's amazing :'(

all I want to do when I get drunk is eat sweets. I hate that most bars' menus are limited to fried foods... get me drunk enough and I'd happily pay $6.95 for a plate of store-bought Oreos.
 

Thebobo

Lifer
Jun 19, 2006
18,592
7,673
136
Cup cakes stoores are only there to launder drug money.

What you never saw Weeds?
 

Kaido

Elite Member & Kitchen Overlord
Feb 14, 2004
48,522
5,342
136
I read the title as "Cupcake Train Crashes". I was hoping for some awesome pics like the Boeing fuselages in the river the other day
 
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