Utah-born Crumbl sees sales plunge 70% in two years, closes at least 57 stores in 2026
Salt Lake City is a city in Salt Lake County, Utah. Utah-based cookie chain Crumbl is facing the worst downturn in its history, according to reports from Restaurant Business, Inc. and Entrepreneur. An internal company document shows August sales were 70% lower than two years earlier, while Placer.ai data shows foot traffic at its more than 1,000 locations fell 32% year over year. At least 57 stores have closed in 2026, and the company has laid off much of its franchise support staff.
CEO Jason McGowan took the blame in a presentation to franchisees last month. “Seeing some stores close and seeing the loss of profitability and all those kinds of things have been painful for a lot of people,” he said. “Been painful here at HQ. And at the end of the day, I'm the CEO and the buck stops with me. It's my fault where we are today.”
The company had bet on “dirty sodas” — fountain soft drinks mixed with cream and flavorings — to turn things around. McGowan pitched them to franchisees in 2025, predicting a 20% sales boost and average unit volume of $2 million, up from $1.1 million. Crumbl launched sodas in U.S. stores in early August, but revenue kept falling; a 32-ounce version packing 186 grams of sugar sparked online backlash. McGowan said August's Soda Week was the worst week in company history.
McGowan and co-founder Sawyer Hemsley announced in May they would step down from day-to-day roles while remaining on the board, and a search is underway for a new CEO, CFO and head of marketing. The chain now operates about 1,064 stores, with closures beginning to outpace expansion. A Kentucky franchisee, Red Sheep St. Matthews LLC, filed for Chapter 7 bankruptcy on Oct. 1, facing more than $352,000 in liabilities, according to Louisville Business First.
Technomic data shows average annual sales per store peaked at about $1.84 million in 2022, then fell to roughly $1.14 million in 2025. Food trend experts say the $5 specialty cookie is an occasional splurge, not a daily habit, and a flood of copycat chains overbuilt the market — the latest fad cycle after frozen yogurt and cupcakes.
Source: GSM · USA (original Chinese edition)
Photo: 图片来源：Wikimedia Commons，Sarah Stierch（Missvain）摄，CC0 公有领域
