Reality TV star to buy into Crumbs
"Crumbs shows dangers of focusing on single product" by Candice Choi | Associated Press July 09, 2014
NEW YORK — When Crumbs, the New York City-based chain that built its business around cupcakes, shuttered several dozen of its remaining locations on Monday, it seemed like an abrupt ending for a company that opened a decade ago to ride the wave of popularity of the sugary treat sparked by the TV series “Sex and the City.”
But Crumbs’ rise and fall isn’t surprising when considering the company’s dependence on a fad. In fact, it’s the latest cautionary tale for businesses that devote their entire menus to variations of a single product:
Companies that offer only one item can fall victim to a number of risks. For one, trendy products tend to attract competition from big and small players that want to jump on the bandwagon....
Being beholden to a single item also makes companies more susceptible to customers’ whims and changing tastes. There’s always a new fad. Frozen yogurt. Chopped salads. Freshly squeezed juices. Entrepreneurs may be eager to open stores selling these products, but there’s always the danger that fickle customers will move on to the next thing....
They use cupcakes to make the point, which proves the absolute bankruptcy of AmeriKan comedy today, as well as the atrocious state of screenwriting.
To combat the risks, many chains diversify their menus. And several have prospered by moving beyond their flagship products.
Dunkin’ Donuts, for instance, has been pushing aggressively into specialty drinks and sandwiches, with a focus on boosting sales after its morning rush hour.
It may not be a doughnut, but don't call it a meal.
And Starbucks has introduced a range of new foods and drinks in its cafes, including premium bottled juices and salad boxes. The coffee chain even plans to expand wine and beer offerings in evenings to as many as 1,000 locations over the next several years.
Magnolia, another popular New York City cupcake shop, is credited for sparking the cupcake craze after it was featured in “Sex and the City.”
The chain, which opened in 1996, has endured while many of the cupcake shops that opened in its wake — including Crumbs — have declined. That’s in part because Magnolia offers a variety of desserts beyond cupcakes, including cakes, pies, cookies, brownies, and banana pudding....
Still, some chains manage to persevere by carving out a niche.
As for Crumbs....
You can have them.
--more--"
Even thought the Globe's crumb cake was too dry, I already previewed the Boston Globe and will not be purchasing one today when I make my coffee run. Sorry.
