The bakery world was on fire for about 8 years with cupcakes. It seemed that if you were a bakery you made cupcakes and you were taking bushels of money to the bank. In the investment world everyone loved investing in the next great cupcake. Many bakeries almost forgot how to make anything else… In fact many bakeries stopped making everything else in favor of the cupcake. It seems that even America has finally grown tired of the venerable cupcake!
It was learned on Friday that Crumbs Bakery shut several dozen locations last week. Crumbs had its hey-day as a staple on “Sex And the City.” The rise and fall of Crumbs cannot really be a surprise when you consider it’s success had to do with focus on a single product and a fad at that. This is a cautionary tale for any business that devotes what they do to a single product. There are other notables…
- Krispy Kreme. This company is 77 years old and has lost almost 100 locations in the last 10 years. Nothing but donuts!
- Mrs. Fields. Had a peak of 438 stores and it is now down to 230. Just expensive cookies.
- TCBY. While it may be The Countries Best Yogurt it is still yogurt and the popularity of yogurt proves that marketing works! TCBY is down to 355 stores from a peak of over 1400! Yogurt? Seriously?
There are other companies that are fighting hard to expand their menus to grow market share. Dunkin Donuts is working to expand their coffee line and specialty sandwich line and they are doing this because it gets a little quiet after the morning donut run is complete. Starbucks is working the specialty sandwich angle as well and they are also planning some beer and wine offerings soon to have a reason to keep stores open. Both of these companies are gaining ground for now.
Whenever I look at any company one of the first questions I ask is “Since I know what they sell I wonder what else they could sell to their same market?” This is a great question to ask and continue asking. Sometimes the best people to ask are the ones that come face to face with your customer. I wonder what they have to say and when they were last asked?
My name is Steven Clauson and my Company is Assault Marketing. Call me at 916-685-7330 or at www.assaultmarketing.com We do it for you or work with you 1 on 1. We Can Help!