Crumbs was bound to fail sooner or later. Although the cupcakes from Crumbs were delicious, the business was not sustainable. One important reason for the failure of the business was the high cost of the cupcakes. There are many other treats that are far less expensive and are just as satisfying and delicious.
People will always love cupcakes, but fads such as expensive gourmet cupcakes have a life cycle, just as any fad does. The gourmet cupcakes craze really began after a 2000 episode of Sex in the City, where the girls visited Magnolia Bakery in New York City. Crumbs became too big too fast, opening 50 stores in just a decade. They seemed to disregard the fact that the gourmet cupcake is a novelty product, and expanded as if it were a commodity and were left with nothing to fall back on.
Look at how people view movies, music, tv today. Everything has to be new, and things don't stay in the light for long. People will obsess over something to the point where they can't stand to see it again. In this case, it was cupcakes. People will move onto their new favorite thing, in maybe a few weeks, a few months or maybe a few years they will grow tired and move onto the next thing to satisfy their need for new.
I believe that the cupcake fad is as strong as ever. It is my belief that cupcakes are the best alternative when trying to feed large crowds and a cake or other dessert isn't enough or too expensive. I believe that cupcakes are very popular among children's activities as well. There is no fighting and arguing over who gets which piece and if one is too big or too small. It is also better to work with cupcakes because you can feel more comfortable knowing you will have the right amount versus trying to guess or regulate the cutting of the cake.