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Cake Boss: Business Model Caused Crumbs to Crumble

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

Buddy Valastro at the opening of the Carlo's Bake Shop on Market Street in Morristown.
Buddy Valastro at the opening of the Carlo's Bake Shop on Market Street in Morristown.
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?
B July 13, 2014 at 09:56 PM
I like Duff's stuff from Ace of Cakes better.....
Mark Golden July 14, 2014 at 05:24 PM
The ACA had no effect on Crumbs. They were not offering insurance to a majority of the staff. As stated off site baking is never as good. Even delays of a few hours will effect the flavor and quality of the baked product. A perfect example is Dunkin Donuts. When they were maed in each shop they had a far different taste and texture than they do now that they all come from a local central commissary. ANY food product suffers from lack of consistency and flavor and yes quality when it is made off premises. All this plus the fact that cupcakes are an indulgent treat. A very expensive one at that. Since they are both costly to the wallet and the waistline, how many times are people going to indulge? The needed repeat business was not there.
Jayne Sagliano July 15, 2014 at 08:06 AM
The above mentioned "boss" is only a name... He is nothing but a face on the product... Most of the baking is now done in Jersey City in his spanking new bakery... His product is garbage. He has had more than his share of 15 minutes of fame. I wish people would stop crowding the streets of Hoboken to get in to "his" shop.
Ridgewood Mom July 15, 2014 at 11:57 AM
The cost of running Buddy's business is rising and the Affordable Healthcare Act is bumping costs?! Don't we all know that Buddy needs to be able to keep more of that money in his own pocket so that he can spend more of his time getting lost at sea on yachts. http://tinyurl.com/qymyalp
Elisabeth Anderson July 17, 2014 at 07:42 AM
Nothing like Sutter's Bakery on the Grand Concourse, The Bronx, NY, circa 1960's


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