Nation’s Largest Cupcake Chain to Start Serving Starbucks

by Angela Nazworth | August 7, 2012 3:38 pm

[1]What do you get when you cross the nation’s largest specialty cupcake retailer with the world’s largest coffee roaster? A taste bud happy dance.

Crumbs Bake Shop (NASDAQ:CRMB[2]) announced Monday that it has teamed up with Starbucks (NASDAQ:SBUX[3]) and will soon serve the coffee king’s brewed drinks at all 51 of its locations.

“Starbucks coffee is perfectly suited for Crumbs cupcakes,” Crumbs Bake Shop President and CEO Julian Geiger said in a press release. “We believe that the availability of Starbucks drinks in our stores will greatly enhance the Crumbs experience for our customers and significantly increase our beverage business.”

Starbucks beverages will first be made available in September at all Crumbs stores in the New York area. The rollout to all other Crumbs locations will follow.

Geiger believes the addition of Starbucks beverages will be good for cupcake sales.

“As our beverage business increases, we also expect to see an increase in the demand for our baked goods,” she said.

CRMB soared amid the news, gaining more than 60% during Tuesday afternoon trading.

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