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The Rise And Fall Of The Gourmet Cupcake

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Gourmet cupcakes have been popping up everywhere for the past decade.

The trend that supposedly started with a "Sex and the City" episode went nuclear when Crumbs Bakery went public in a reverse merger worth $66 million in 2011.

But things quickly south for Crumbs, and now it seems the whole trend may be in trouble.

The Wall Street Journal declared today that the gourmet cupcake market is crashing.

The craze first began in 2000, when Miranda and Carrie munched on Magnolia's Cupcakes on an episode of Sex and the City.

People quickly jumped on fashion trends the show featured.

This time, they jumped on the culinary trend, too.



Tourists started flocking to Magnolia Bakery's West Village location. And then a Sex and the City tour bus made the location a destination on its NYC tour.

Emma Forrest wrote an article detailing how the cupcake craze at Magnolia ruined her neighborhood, as tourists began flocking their in droves.

Even Magnolia couldn't keep up with the demand and was taken off the tour in 2010. It was replaced with Billy's Bakery.



After that, cupcake shops started popping up around the country. Sprinkles Cupcakes, founded in 2003, was one of the first.

Its cupcakes went for $3.50 and it bills itself as being the instigator of the cupcake craze.

Its founder, Candace Nelson, later became a judge on Food Network's Cupcake Wars.



See the rest of the story at Business Insider

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