Gourmet cupcake chain, Crumbs, recently made news because it is closing several of its stores due to poor and declining sales. Crumbs is now in the middle of a complete brand shift and moving their products into grocery stores. It is yet to be seen if this move will save the company but one thing is for sure, more Crumbs stores are going to close. This brings me to a question, is it really worth it to hitch your business to a fad or trend?
As we are seeing with Crumbs, businesses built on fads will eventually come to an end. This isn’t the first time this as happened either, there was Krispy Kreme with their hot donuts, Brazilian steakhouses with their swords full of meat and who could forget Crocs and their ugly (as far as I am concerned) shoes.
I don’t blame these companies; fads are a great way to make a quick buck if you can capitalize on them, but be careful building a business off of trends. If you do at least have an exit tragedy ready to go because it will end and when it does you don’t want to be scrambling to figure things out as the ship goes down. Crumbs may make it through this, but they should have seen it coming and had this business shift planned a long time go.
Author: Gary Balakoff