Since Crumb’s abruptly closed its doors last week, industry players have been questioning the value of “fad foods” such as cupcakes, doughnuts, frozen yogurt and even cronuts.
Cupcake shops such as Crumbs and Magnolia Bakery may be go-to destinations for tourists in big cities like Manhattan, but can they really drive ongoing revenue? More importantly, can these fad food chains create a base of loyal customers? The RTP editors and social media manager share their thoughts:
Debbie Hauss, Editor-in-Chief: I think there are a number of factors that contribute to the success or failure of a food fad, starting with basic consumer interest and product development. Marketing will play a key role in the success of this type of product as well as the overall economy. I think the economy has harmed the cupcake craze and I can’t say I think Lemonis Fischer will be making a good business decision by purchasing Crumbs. The term “fad” itself is concerning because the definition is: “an intense and widely shared enthusiasm for something, especially one that is short-lived and without basis in the object’s qualities.” If the goal is to be a “fad,” then investors must be looking at a high risk, quick win and quick out scenario. It’s not my kind of investment.
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Alicia Fiorletta, Senior Editor: I think it’s very challenging to build a thriving business around a single product. Even Magnolia Bakery, one of the more successful of the cupcake bunch, has extended its offerings to include full-size cakes, puddings and other desserts. Although Crumbs tried to do the same, I think the issue is that the company became so notorious for its super decadent, and expensive, cupcakes it was difficult for customers to see anything else. And the reality is, consumers may be willing to buy a $4 cupcake every once in a while, but not only a weekly or even daily basis. After all, if they really want cupcakes that badly, they can just go to the store, buy some mix and icing and make a dozen for half the price.
Kim Zimmermann, Managing Editor: I think retailers that want to add a fad-type food to an already successful business model might have more of a chance of success than trying to build an entire business around a fad. Pretzel rolls, for example, were a popular item a while ago, and Wendy’s has seen some success with bringing them back to the menu occasionally.
Glenn Taylor, Associate Editor: I’ve seen these kinds of fad foods succeed in a mom-and-pop setting, but only when they’re brought under one umbrella, bakery style. In the case of a major donut shop such as Dunkin Donuts, the morning options such as coffee and breakfast are what really put it over the top with consumers. Even if the quality of a fad food is excellent, these items aren’t necessities in most consumers’ minds. High pricing for singular items doesn’t help the cause, especially when you can find comparable items and a much better selection at local bakeries.
Brian Anderson, Associate Editor: I would think that specialty food chains would prefer to stay away from becoming “fad food” stores, even though the publicity boost is extremely beneficial to the business in the short-term. I believe that the concept of “fad food” comes down to how well a company’s marketing team can handle the sudden boost in publicity. In the case of Crumbs, the company looked to expand the business instead of focusing on what made the company popular in the first place. An effective marketing strategy could have seen Crumbs go from a fad food chain to a more notable, trendy specialty store.
Krystal Vadhar, Social Media Manager: Fad foods can be compared to lifestyle trends. I have seen fad foods such as cronuts take the media by a storm for weeks to come; but their popularity is constrained by a timeline which depends on the public’s attention spans. I do believe a sustainable business model can be built on fad foods but only if there is more depth and variety to the overall concept and brand story. Individuals are more likely to participate in fad foods when its sold with a more glamorous lifestyle. Although this is a hard sell, fads such as Crumbs, Sprinkles and even Krispy Kremes have already forged their way down this road and more will continue to follow.
