LARCHMONT (CBSLA.com) — Business owners are coming up with new sugary ideas in the face of a decline in the cupcake market.
Crumbs Bake Shop, which has 78 stores, has seen its same-store sales fall 15.4 percent last quarter alone, on top of big losses in the months prior.
During a recent conference call, Crumbs corporate called it disappointing.
“While we are not pleased with our performance, we remain focused on the initiatives and strategies that will ultimately change the trajectory and vitality of our business in the future,” a company spokesman said.
Joon Paik, who recently opened Plops Cakeballs in West Hollywood, said consumers are ready for something other than a cupcake.
“I think a product like ours or some new innovative products need to come to the market to take their place,” he said.
Kevin Burke with Trinity Capital said trendy small businesses will always pop up in bigger cities, but when the fad starts to fade, owners need to come up with other ways to satisfy their customer.
“Like the Hula Hoop, they managed to get the attention of a lot of people in a quick time frame, which makes the businesses very successful, but in the end if they have a narrow product, it’s difficult to sustain yourself,” said Burke.