Business & Tech

Cake Boss: Business Model Caused Crumbs to Crumble

Buddy Valastro says baking not on the premises hurt cupcake shop's products.

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The most popular baker in America shared his insight with Fox Business Network this week as to why competitor Crumbs Bake Shop suddenly shuttered its doors this week.

"I think operationally their model was a little flawed," Buddy Valastro said on the segment, which can be seen in the video clip above. "Whenever you don't bake on premise, you know, this stuff's got a shelf life."

Valastro alluded to the now-closed business not doing well because it was baking products off-site and shipping the goods into the stores. The TLC Network star also touched on the cost of business rising and took aim at the Affordable Healthcare Act bumping costs for him and his employees.

Crumbs, which announced the closing of all its stores on Monday, had 10 locations in New Jersey, according to its website, including:

  • Bridgewater Commons
  • Cherry Hill Mall
  • Freehold Raceway Mall
  • Garden State Plaza
  • Newark Airport
  • Rockaway Townsquare Mall
  • Willowbrook Mall
  • Hoboken (Just up the street from Carlo's Bake Shop, owned by Valastro)
  • Ridgewood
  • Westfield
On the other end, Valastro – who lives in Morris County – has expanded the Carlo's Bakery business both locally (a brand new full service shop had its doors opened in Morristown this spring) and outside New Jersey, including a shop in Times Square and inside the Venetian Hotel in Las Vegas. 

Would you rather have a cupcake from Crumbs or Carlo's?

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