Cupcake Bubble

This is from one of my favorite writers, Gregg Easterbrook.

“Tech start-ups were a bubble, the housing market was a bubble; most likely there’s a gold bubble in progress, and when the gold bubble bursts, everyone will claim to have known it all along! The bubble to worry about is the cupcake bubble: all those fancy cupcake bakeries suddenly in New York, Boston, Washington, San Francisco and Seattle, offering $5 cupcakes hard to distinguish from supermarket cupcakes. It’s a bubble: Capital is flowing into the opening of cupcake boutiques because, right now, consumers are willing to pay a premium for a sweet that is inexpensive to bake. As with other bubbles, this one is based on exaggerated claims and assumptions that can’t last. In 2009, for whatever reason, people will stand in line to fork over $5 for a cupcake that masquerades as “red velvet” or “pink lemonade.” Odds people will continue to do this long-term? 0.0 percent. Anyone opening a fancy cupcake bakery is jumping into the downside of a bubble. Don’t say you weren’t warned.”

This article makes me think of how private business in Kuwait seems to go in phases. First it was the advertising agencies. Then is was the fashion designers followed by the burger stores. Now its the Cupcake and baked good fad. i wonder what we’ll see next.


4 thoughts on “Cupcake Bubble

  1. I totally agree with you. The bubble is about to burst on the cup cake business. Especially in kuwait where there are more cupcake concepts than gas stations. I belive that only the most innovative will survive the fierce competition that has ensued.

    One idea is to make sure your cupcakes stand out from the rest by adding a little something special to them. Spacecakes anyone?

    Happy cupcaking!

  2. Cupcaaaaaaaaaaaaake….with zombie eyes! EEE walla .. the other day maya and i baked betty crocker and made amazing vanilla chocolate with sprinkle cup cakes.

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