sábado, 15 de enero de 2011

Is the Cupcake Bubble Still Inflating?

In November 2009, we ran an article that explored the difficult economics of opening a cupcake shop, and we asked this question: Are cupcakes a viable business? This week we got an answer — at least for one cupcake chain, Crumbs Bake Shop. Crumbs, which is based in New York, announced plans to go public in a $66 million deal. It claimed 2010 revenue of $31.1 million with earnings of close to $2 million.

When we first asked about the viability of cupcake businesses, we received more than 100 comments offering wildly divergent opinions. What do you think now? What, if anything, does Crumbs’s success suggest about the cupcake business?

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