A Beloved Cookie Chain Has Been Quietly Closing Locations
Crumbl Cookies is often associated with its store growth, holding the title of the fastest-growing cookie company in the U.S. However, 2023 marked a change in pace for the company, as this was when Crumbl closed locations for the first time since opening in 2017, as reported yesterday by QSR Magazine.
Last year, the company shuttered seven stores. These closures included four shops in California, one in Florida, one in Georgia, and one in Utah.
Following these shutterings, Crumbl closed a couple of additional stores in 2024. In January, the company shut the doors of one shop in Bellevue, Tenn., as reported by Williamson Source. Then, in February, Crumbl closed a Victorville, Calif., location "due to underperformance," according to Victor Valley News Group.
That same month, Crumbl opened its 1,000th shop in Burbank, Calif. The cookie chain now operates more than 1,000 locations and aims to open 122 more stores in 2024, according to its franchise disclosure document (FDD). QSR reported that this would be Crumbl's "lowest output since 2020." In 2023, the cookie chain opened 184 net new stores, previously opening 363 shops in 2022 and 184 in 2021.
This deceleration appears to coincide with the company's plan. In 2023, Crumbl's CEO Jason McGowen told QSR that the chain's growth will be slower to make sure Crumbl is "healthy and manageable."
"It's an interesting strategy, and we think it'll pay off," McGowan told the news outlet. "And again, we don't think it's going to be perfect. We think there may be a mistake on a store location or that sort of thing. But I think we got to a really good spot and I think we nailed the first phase of the strategy. So now it's going to be a little bit more strategic on where we place locations, the timing."
McGowen also said he anticipates more opportunities in international markets like the United Kingdom and Canada. Crumbl currently operates 10 locations in Canada.
In 2023, 571 Crumbl locations reported an average revenue of $1.16 million, making an average net profit of $122,955. Meanwhile, in 2022, 324 units generated an average revenue of $1.84 million and an average net profit of $298,319. This change marks a 37% decrease in average revenue and a 59% drop in average net profit.
Crumbl did not immediately respond to a request for comment regarding its store closures.
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