The Times reports today that the bubble has yet to burst on the cupcake market in New York. Crumbs Bake Shop, a national cupcake chain that began as just one New York store in 2003, is going public through a $66 million merger with an investment company, the 57th Street General Acquisition Corporation. Per the Times, the investment company will pay Crumbs $27 million in cash and $39 million in stock. They plan on opening 200 new locations by 2014.
Meanwhile, things aren't looking so rosy for NYC's other trendy dessert, frozen yogurt. Crain's reports that most fro-yo chains in New York are downsizing, with big contender Red Mango, closing four locations in the last year. It now has just two locations and plans to segue into a self serve model in places like gyms (ouch). The article also cites Berrywile, Yolato, YogurBerry, Melt, and Peaches as casualties of the waning interest and tough economic realities. One chain that is apparently doing just fine: Pinkberry.
· Cupcake Bakery to Go Public in Merger [Dealbook via Eater National]
· Frozen yogurt meltdown [Crain's]