Frugal Friday: How Much Would You Pay for a Cronut?

cronut

Happy Friday all! I am so glad this week is over as I have been sick all week. It’s one of those colds that hits you like a freight train and has been no fun. Thankfully, it appears to have run its course. I know my last few Friday posts have been a bit on the heavy side and this week I thought I would lighten it up a bit with this article from Yahoo Finance on the cronut. Admittedly I had never heard of the cronut prior to reading this article and after I did a quick internet search I found that there is a lot of talk about them. ‘What’s a cronut,’ you ask? You might find yourself asking this if you do not live in New York or have not read about them, but just imagine a donut on speed. This creation is part donut, part croissant which is then deep fried and filled with cream and finally topped with glaze and sugar. I know, I think I gained 5 pounds and had my cholesterol shoot up 40 points just reading that! What the chef, Dominique Ansel, has done (other than create an edible heart attack) is absolutely ingenious. He makes only 200 to 250 of these cronuts each day which has created quite the fervor of locals to get their hands on one of these sugar bombs which are priced at $5 a pop. This bypass-inducing creation has only been available for roughly four weeks and people are now waiting in line for upwards of two hours to get their hands on these little delicacies which has also spun off a black market for cronuts where people are paying $40 to eat something that normally costs $5.

There are numerous ways you can look at the cronut craze. As someone who works in the advertising industry, this chef (or PR person) is an absolute genius when it comes to marketing. He has created demand and limited the supply which has resulted ultimately in people doing crazy things to buy his product. I’ve read that the demand is so high for them that even celebrities can’t get special treatment and have to wait in line like everyone else to get their mouths around a cronut, unless they plan on going on Craigslist to spend $40 on one. Beyond that is the health issue. I like a good donut as much as the next person, but waiting in line to buy one for two hours is something completely different. The caloric information is supposedly (at least from what I can find) not available and makes me wonder how long it’ll take Mayor Bloomberg to tackle the “cronut epidemic”. ;) While I might try a bite if one was offered it would go no further than that as it just sounds and looks like too much of a good thing. Ultimately, I look at this as a financial issue. I know, surprise, surprise on a PF blog, but I have to go there. While the demand has been created, spending $40 on a half donut/half croissant sugar bomb is absolutely nuts in my humble opinion. I guess it’s part curiosity and part wanting to try the “in” thing, but I just can’t help but look at what else my family could do with that $40. Looking at our grocery budget that would fund roughly half of our every 10 day grocery shopping trips. Mind you, we don’t eat rice and beans but we are wise in how we spend that money and it still allows us to buy a thing or two that we might enjoy. I’ll spare you from belaboring the financial aspect of this as I am sure you can guess what I really think about spending $40 on something like a cronut. I’ll leave you with this though…only in America!

Before I get on to the link love, if anyone is interested in guest posting, I’ll be taking the week of June 24th off and am looking for some guest posts to fill the week. If you’re a fellow blogger, meaning I know you or know of you, and you’d like to guest post please contact me. I’ll be helping my youngest brother as he’s getting ready to move after getting his first job as a teacher, so I am doing my part to be a good big brother. :)

It’s been another great week in the blogosphere. If you have the time this weekend, I encourage you to check out some of my favorite blog posts from this week.

Blog Post of the Week

An Impassioned Plea for Understanding Compound Interest on Broke Millennial

I loved this post by Erin this week. She describes how she hated math as a kid (she’s definitely not alone in that) yet enjoyed learning about one thing – finances. I know that saving and investing are not the sexiest of topics to read about, but compound interest is really where it’s at. There are a million excuses to use, and believe me I have used a few of them, but you really are only harming your own long term prospects if you do not save/invest early in life. If your employer offers a 401k match then that is THE perfect place to start as it’s free money. Beyond that, there are a myriad of ways to get started and please do not allow the amount you have hold you back as time will do a magic thing to it…it’ll grow it. Take it from someone who did not start saving early enough – those years you do not save do matter.

Other Blog Posts That Ruled

Break All the Rules on Freedom Thirty Five Blog

Was Your Education Worth it? on DINKS Finance

The Fantasy World Where Money Doesn’t Exist on Reach Financial Independence

Your Wealth is More Than Just Your Net Worth on Life and My Finances

Why Fresh Food is Cheaper Than Processed Food on The Frugal Guru Guide

Financial Benchmarks Investors Should Consider to Gauge Performance on Financial Samurai

Side Hustle Series: Make Money at Parties on Make Money Your Way

Odd Search Terms

Become rich off of $6…one word – Powerball!

Are rich people mean…I hear they pay their servants nothing.

Can I leave my 401k at Wal-Mart…Why would you want to?

How can I get rich girls…Put a sign around your head that says “Hey ladies, I’m available!”

It is wise to spread out a car loan farther…Sure it is, why not finance it for a decade!?

My head itches…Then scratch it!

Wal-Mart’s highest end clothing…Boy, talk about a contradiction!

Why do people scratch their heads when talking to me…Because you make no sense!

 

How much would you spend for a cronut? How many pounds did you gain just reading about them? Do you have any fun plans for this weekend?

 

Photo courtesy of: Mirka23

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About the author:

I'm the founder of Frugal Rules, a Dad, husband and veteran of the financial services industry. I'm passionate about helping people learn from my mistakes so that they can enjoy the freedom that comes from living frugally. You can connect via Twitter / Facebook.

54 comments on “Frugal Friday: How Much Would You Pay for a Cronut?

  1. I agree with your blog post of the week. Broke Millennial knocked it out of the park. We were also on same wavelength as I had an article on Compound Interest this week also. Must be the week for watching our money make money, which then makes us more money. Have a great Friday everyone.
    Free Money Minute recently posted..Compound Interest RoundupMy Profile

    • Thanks DC, it just came out of nowhere. I’d definitely be happy to have you guest post. :) I agree, Erin’s post was spot on and something we all need to hear.

  2. LOL, Mayor Bloomberg will have the cronut outlawed within the week, I’m sure. That is, unless he’s already addicted and can make an under-the-table deal with Cronut Man. That being said, you have to admit that thing looks delicious. But it is definitely what I would call diabetes-on-a-plate. How long do you think it will be before Cronut Man doubles the price? :-)
    Laurie @thefrugalfarmer recently posted..How to Save Money on GroceriesMy Profile

    • I would agree Matt. The problem, though, is people have to wait 2 hours to pay the $5. I can only imagine what I could get accomplished in that time.

  3. I think that chef has been reading children’s books. We read on that was in interesting take on Cinderella that I really liked. Two modern day kid’s got transported to Cinderella’s house. They talked her into becoming independent. Instead of looking for the prince, she decided to earn some money to get out of her stepmother’s house and no one in the kingdom had ever heard of brownies, so they baked up a batch every day, called them crownies and sold out at the market so Cinderella could get an apartment! Limited quantity, brilliant. Have a great weekend.
    Kim@Eyesonthedollar recently posted..An Unexpected Opportunity, What Should I Do?My Profile

  4. I have to pass on the cronut! Never been a donut fan to start with, I’ll stick with a warm croissant full of butter. I saw something similar with “the best pizza of NY” priced at $5 per slice, this I would go for without blinking. Thank you for the mention John, have a lovely weekend!
    pauline recently posted..Friday recap, a normal day and two mapsMy Profile

    • Oh, I agree that you should try different things in life. That’s one thing. Creating a black market for a glorified donut is another. ;)

  5. It’s a very New York thing to go for a crazy like that… there are two types of people in NY.. those who hate lines and stuff like this, and people who love waiting in line and getting on the trends. I am one of the former. It only took two weeks after the cronut was for sale for folks to start selling their spot in line on Craigslist for one of these… that’s just the way it is here, lol.

    Also, the reason the guy makes so few of these a day is because the leavening process takes so long (over a day) that he can’t just whip up a batch if he runs out.

    • I had read that people are selling their spots in line, that’s a little crazy. But, hey, if you can make money then why not? ;)

      That makes sense about the leavening process, thanks for pointing that out Tara!

  6. Man people are OBSESSED with donuts…or in this case cornuts. I do agree the marketing is genius to create the supply and demand problem. It’s sort of like the red velvet rope line outside of nightclubs. Even if the club isn’t packed, they want to make it seem like it is. Personally I can easily walk away from a donut because it’s HORRIBLE for your health. OK like you said I might try a bite if it’s in front of me, but I like rich sweets like dark chocolate, and not sugary ones like cake (or cake with lots of icing-blech!). Hope you feel better soon and have a great weekend! I might take you up on the guest post….let me check my schedule, but since I’ll be in Detroit I’ll have time.
    Budget and the Beach recently posted..4 Frugal Father’s Day Gifts to Last a LifetimeMy Profile

    • Yes they can be and I think he has managed to create quite the demand for them. I’d be more than happy to have you guest post for me that week. :)

  7. First time I’ve heard of the cronut too. I think the most I’d pay for one is $10, but the biggest cost will probably be to my health lol. Reminds me of The Douche Burger which has ingredients like caviar in it that sells for hundreds of dollars, not surprisingly also in New York. Thanks for the mention. Have a great weekend :D
    Liquid recently posted..Break All The RulesMy Profile

    • I do seem to get some pretty good ones and am sure they’re going to get more interesting after Jen’s post yesterday. You have a god one as well Michelle!

  8. I’ll pass on the cronut, if I’m paying $40 for a one time deal then it’s going to be a steak dinner! Speaking of deep fried, the SD Fair is starting, and I’m curious as to what they’re managing to deep fry beyond Snickers and Twinkies this year.
    anna recently posted..Why I began runningMy Profile

    • Same here Anna. Speaking of Fairs…they had deep fried butter as the Iowa State Fair last year. One word…NASTY! There is no way I could try something like that.

  9. Oh my, the things people concoct these days. A cronut. As you said, ingenious marketing but I’m pretty sure I gained 5 pounds too. :) I’m sorry you’re not feeling well. Cold are the worst, especially in the Spring. It just feels wrong. Hopefully you’ll be on the mend and back to good health – just in time to help you brother move! LOL! Have a great weekend.
    Shannon @ The Heavy Purse recently posted..Blog Round-Up: Week of June 3, 2013My Profile

  10. Oh wow, those cronuts look/sound so fattening, I feel heavier just contemplating them. I would definitely pass on that, not even worth $5. The crazy things that happen in the city…it doesn’t surprise me people are willing to pay such a premium for them.

    I hope you feel better soon! I’ve been battling allergies and thankfully found some medication that works so that I’m not sneezing 10 times every five minutes.

    I also enjoyed Erin’s posts/series about retirement planning, great info, and stuff us millennial’s really need to know and care about.
    E.M. recently posted..Student Loan Debt: Update #1My Profile

    • I agree, it doesn’t surprise me one bit that people will pay that for something like this.

      Sorry about the allergies. I do not have them, but my wife does and she is constantly sneezing this time of year.

  11. A Cronut? Sounds interesting, but I definitely would not pay $40 or wait in line for 2 hours for it. I hope the person creating it takes full advantage of the craze before it dies down.
    Jake @ Common Cents Wealth recently posted..Weekly Recap – June 7th, 2013My Profile

  12. Would love to try one of those. Yes I have a sweet tooth but I am not buying it off of craigslist period. $5 isn’t too bad but not $40. Def not waiting in line for 2+ hours. As always the search terms are too funny.

    • Yea, it does not look terribly appetizing to me either. I agree, there are some things so ridiculous that can only be created in America for some reason.

  13. I really like that the chef won’t make special exceptions for celeberties. If you really want to gorge on it, what’s so bad about hanging out in a line for a few hours. The closest thing I’ve ever had is a deep friend snickers, but I don’t think that’s even half as unhealthy!
    CashRebel recently posted..My Commuting Survival GearMy Profile

    • I did too. I had to laugh when I read that Anderson Cooper was all bent out of shape because he could not just roll up and get one without having to wait. I have seen the deep fried snickers before, but the worst I have seen was deep fried butter.

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