You could let them decorate the cupcakes as teddies. Chocolate buttercream. Choc button for ears and nose. Print off pictures of teddies and get some fabric scraps to make a collage? Other crafty activities like bead stringing?
Decorating teddybear shaped biscuits, we did this and it took up 20 mins so was a good time filler and can be put in party bags. You can also get teddy bear t-shirts to decorate with fabric pens but I guess one size won't fit all teddies.
Agree with pass the parcel, bingo and we also did a chopsticks game with skittles that was quite fun. Time files really fast so you don't need loads of things to do.