Crumbl Cookies built a nationwide following with oversized treats, rotating weekly flavors, and viral social media attention. Now, the dessert chain is facing a major slowdown, with dozens of store closures and corporate layoffs raising questions about its once-rapid expansion.
Crumbl closes 57 locations amid sales slump
The Utah-based cookie chain has closed at least 57 locations in 2026, according to recent industry reports. The company also laid off much of its franchise support staff at its headquarters in Lindon, Utah, as the business confronts declining sales and reduced customer traffic.
An internal company document cited by Restaurant Business showed that Crumbl’s August sales were 70% lower than in August 2024. Meanwhile, data from Placer.ai indicated that visits to its more than 1,000 locations fell 32% year over year.
Despite the setbacks, Crumbl continues to operate approximately 1,000 locations nationwide. The reported closures represent a reversal for a brand that expanded rapidly after gaining popularity on social media.
Dirty soda launch fails to reverse the downturn
Crumbl also attempted to expand beyond cookies by introducing dirty sodas, customizable soft drinks mixed with ingredients such as flavored syrups and cream. Company leaders had projected that the drinks could increase sales by 20%, but the initiative failed to deliver the expected boost.
CEO Jason McGowan reportedly acknowledged the company’s struggles during a presentation to franchisees, taking responsibility for the downturn. The company has also been preparing for leadership changes, with McGowan and co-founder Sawyer Hemsley previously announcing plans to step away from day-to-day roles.
Changing consumer habits
Rising prices and pressure on household budgets may be making Crumbl’s premium-priced treats harder for consumers to justify. The chain’s recent difficulties also highlight the risks of rapid franchise expansion when customer demand weakens.
For now, Crumbl remains a major player in the cookie market, but its closures and layoffs signal a difficult period for one of America’s best-known viral dessert brands.
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