The rise and fall of Crumbs Bake Shop: How the Y2K darling lost its edge — and how its founders plan to bring the bakeshop back online and in groceries

Hayley Peterson,Alex BitterMay 9, 2023, 01:53 IST

Crumbs Bake Shop went out of business in 2016. But founders Mia and Jason Bauer are trying to revive the cupcake brand.Crumbs Bake Shop

Crumbs Bake Shop popularized fancy cupcakes in the early 2000s before the brand floundered in the 2010s.
But Crumbs' founders returned to the brand last year and are rebuilding it with a new strategy.

Twenty years ago, Crumbs Bake Shop was one of the biggest names in cupcakes. Then, it all crumbled.

The husband-and-wife team who opened the first Crumbs store in Manhattan grew their business to dozens of locations in an effort to become America's local bakery. But the company entered a downward spiral when the cupcake craze lost steam.

After laying dormant for several years, they're trying to bring the brand back. Here's the complete story of Crumbs:

Three years after Sex and the City inspired a cupcake craze, Crumbs was born.

Sex and the City

Crumbs was a huge hit.

Next came a nationwide expansion.

REUTERS/Fred Prouser

The Bauers sold half their stake in Crumbs for $10 million in 2008, and the empire kept growing.

Fred Prouser/Reuters

The company revealed an aggressive plan for cupcake market domination.

Fred Prouser/Reuters

Crumbs was acquired for $66 million in 2011 as it prepared to go public.

Max Nisen/Business Insider

But beneath the surface, trouble was brewing.

Katherine Kallinis Berman, left, and Sophie Kallinis LaMontagne pose with cupcakes from Georgetown Cupcake, their bakery in Washington, DC.Courtesy of Georgetown Cupcake

After a lackluster earnings report, Crumbs' stock suddenly crashed.

Matt Sayles/AP

In 2013, the Crumbs empire finally began to cave.

Julie Zeveloff/Business Insider

The company searched for other ways to make a profit.

Fred Prouser/Reuters

But in 2014, Crumbs had to make a tough choice to stay in business.

Shannon Stapleton/Reuters

Meanwhile, the Bauers had moved on from Crumbs.

Crumbs' first turnaround attempt failed, and the chain shuttered its last store in 2016.

A Crumbs cupcake shop in 2014.Denise Marcotte/Getty Images

In 2022, the Bauers bought back the rights to Crumbs. Today, they're working on reviving the business.

Crumbs Bake Shop

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The rise and fall of Crumbs Bake Shop: How the Y2K darling lost its edge &mdash; and how its founders plan to bring the bakeshop back online and in groceries

Three years after Sex and the City inspired a cupcake craze, Crumbs was born.

Crumbs was a huge hit.

Next came a nationwide expansion.

The Bauers sold half their stake in Crumbs for $10 million in 2008, and the empire kept growing.

The company revealed an aggressive plan for cupcake market domination.

Crumbs was acquired for $66 million in 2011 as it prepared to go public.

But beneath the surface, trouble was brewing.

After a lackluster earnings report, Crumbs' stock suddenly crashed.

In 2013, the Crumbs empire finally began to cave.

The company searched for other ways to make a profit.

But in 2014, Crumbs had to make a tough choice to stay in business.

Meanwhile, the Bauers had moved on from Crumbs.

Crumbs' first turnaround attempt failed, and the chain shuttered its last store in 2016.

In 2022, the Bauers bought back the rights to Crumbs. Today, they're working on reviving the business.

The rise and fall of Crumbs Bake Shop: How the Y2K darling lost its edge — and how its founders plan to bring the bakeshop back online and in groceries