Don’t worry. The great cupcake crash of 2013 hasn’t hit Canada and prominent bakers say our cupcake industry is better structured than its U.S. counterpart and will withstand the ‘cupcake crisis’ going on south of the border.
“Forget Gold, the Gourmet-Cupcake Market Is Crashing,” The Wall Street Journal declared Wednesday, in an article that chronicled the rise and fall of the Crumbs Bake Shop Inc. stock price.
At the peak of the U.S. cupcake boom in mid-2011, Crumbs traded at $13 a share, the Journal reported. With 67 cupcake shops, Crumbs locations have nearly doubled in the last two years. As of Wednesday, it was $1.70 after a precipitous drop of 34 per cent on Friday, in the wake of Crumbs’ announcement of falling sales.
The analysts weighed in. The problems are not confined to Crumbs, but reflect sector-wide decline.
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