Struggling Crumbs Bake Shop Shifting To Grocery Stores

In the wake of the Cronut boom, could it be possible we're seeing the burst of the cupcake bubble? According to a new report from Businessweek, the New York-based cupcake shop Crumbs has announced they're looking to shift their focus from brick-and-mortar storefronts to the grocery shelves, starting with membership chain giant BJ's Wholesale Club following a drop in store sales.

Crumbs, which opened its first shop back in 2003, has since expanded to 62 locations nationwide. However, Crumbs has recently stumbled on hard times. The chain, known for their trademark six to eight serving "colossal cupcake," has been forced to close 17 stores since 2013, and, according to CEO Ed Slezak, is looking for new ways to enter the market. "I don't know that cupcakes by themselves are a big enough classification to run a substantial business on," Slezak told Businessweek.

One of Crumbs latest efforts has been taking a stab at a Cronut clone in the form of their take on the doughnut-croissant hybrid, called the "Crumbnut." Crumbnuts will be sold at BJ's starting on Monday, alongside Crumbs' wide variety of cupcake items.

Adam D'Arpino is the Restaurants Editor at The Daily Meal. Follow him on Twitter @AdamDArpino.