Dive Summary:

• The ‘cupcake boom’ may have burst according to many economists. Ten years ago cupcake specialty shops did not exist but many of the stores have sprung up across the U.S.
• One particular company, Crumbs Bake Shop, is publicly traded on the Nasdaq and boasts 67 brick-and-mortar shops. Shares for the company have dropped to $1.27. At its peak during 2011, Crumbs sold for $13 per share.
• Market flooding and a lack of product range are cited as some of the factors, along with a more health-conscious American consumer.

From the article:

Why has the cupcake boom evaporated in such a fashion? Restaurant analyst at Wedbush Securities Nick Setyan commented:

“I never understood the cupcake thing to begin with. With Crumbs, their expansion strategy was too quick, disorganized and franchise-heavy. The big issue: people can bake cupcakes at home.”