Crumbs Is Back, Now with More Than Just Cupcakes

As promised, Crumbs is back. The former cupcake shop that went bust back in July has been resurrected by Dippin’ Dots owner Fischer Enterprises and CNBC host Marcus Lemonis after a $6.5 million deal that closed in August. The relaunch began in New York City today with 25 additional locations set to open in the next month. There are two new cupcake flavors — Sweet Pete’s Salted Caramel Chocolate Cupcake and Key West Key Lime Pie Cupcake — along with the Cronut-like Crumbnut, a bagel/croissant called the Baissant, a line of cookies and a chocolate bar and frozen desserts including dessert bars.

Choosing National Dessert Day to reopen its first store is a smart play. But did Crumbs do enough to change the outcome this time around?

“It remains to be seen whether the changes will solve two of Crumbs’ biggest problems: High real estate costs and cupcake ‘burnout,'” says Business Insider.

The second issue might be bigger than the first. After all, there are tons of bakeries, cafes, and all manner of businesses that thrive despite the cost of real estate in different cities. If they manage the number of shops wisely, they might be able to keep real estate costs under control.
But demand is what will ultimately determine future success.

There are now a variety of products, but will customers go out of their way to visit a Crumbs Bake Shop to buy them? And one of the problems that we pointed out previously — the dull experience of being in a Crumbs bakery — doesn’t seem to have been rectified judging by the photos posted on Business Insider. The menu may have been revamped, but the stores have not.

There’s no need to count Crumbs out; people like cupcakes and the shops are reopening quickly enough that people can remember the brand well. But what Crumbs needs to do is create a great desire among customers to spend their money in their shops. It’s only day one, but there are only so many chances in the coming couple of months that Crumbs will be able to do so.

Publish date: October 14, 2014 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT