Goodbye Cupcakes and Thanks For All the Fad


Sat, Apr 20th, 2013 11:00 by capnasty NEWS

According to The Week's Carmel Lobello, the fad of gourmet cupcakes has finally come to an end as a result of "over-saturation":

As a business, making cupcakes has a relatively low barrier to entry and the field has become saturated with competitors, including individual bakeries, chains and grocery stores. Gigi's Cupcakes USA, based in Nashville, Tenn., has opened 85 stores in 23 states since 2008 through its franchising system...

Crumbs perhaps grew too fast into suburban markets that couldn't support the brand, suggests John Gordon, principal at Pacific Management Consulting Group, a restaurant-industry analysis firm. "There are only 15 to 20 metro areas in the country where it would work," he says of the gourmet concept. "There is only so large of a market."



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