Full Breakdown
Crumbl Cookies Faces Sharp Sales Decline, Store Closures and Leadership Changes
By Drooid · · How we work
Core Event
Crumbl Cookies announced the closure of 57 U.S. locations in 2026 and significant layoffs at its Lindon headquarters. An internal report showed August sales were 70 % lower than August 2024, and foot traffic fell 32 % year-over-year. Co-founder Jason McGowan publicly accepted responsibility, and the company began searching for a new chief executive, chief financial officer and head of marketing.
Background & Context
Since its rapid expansion after 2020, Crumbl opened more than 1,000 stores nationwide. The “rotating-menu” model spurred imitators, leading analysts to describe the market as “overbuilt.” Earlier attempts to boost sales, such as the rollout of “dirty sodas,” failed to deliver the projected lift and resulted in the chain’s worst-performing week.
Data & Statistics
- Store closures: 57 locations shut in 2026.
- Sales decline: August 2026 sales 70 % lower than August 2024 (Restaurant Business).
- Foot traffic: Down 32 % YoY across the chain (Placer.ai).
- Average unit volume: $1.1 million per store in 2024, falling to $1.14 million in 2025 (restaurantbusinessonline.com).
- System-wide sales: Over $1.3 billion in 2025, representing more than 1,000 % growth since 2020 (restaurantbusinessonline.com).
Official Statements & Responses
Zions Bank senior economist Robert Spendlove linked the slowdown to consumers “pulling back” amid “rising prices and higher inflation.” Crumbl’s CEO Jason McGowan told franchisees that “the buck stops with me” and that a new CEO would be appointed soon. The company emphasized that more than 1,000 stores remain open.
Industry Analysis (Criticism & Opposition)
Mike Kostyo, vice president of Menu Matters, described the situation as “the cookie bubble is bursting,” noting that rapid concept popularity often leads to a flood of similar locations that later falter.
On-the-Ground Reports
Individual franchisees have filed for bankruptcy. Red Sheep St. Matthews LLC in Kentucky listed $352,780 in liabilities against $10,000 in assets and reported a $17,000 loss in 2026. A Columbus, Ohio store opened in 2022 closed in September 2026, with its equipment slated for auction.
Conflicting Reports & Gaps
No public timeline has been provided for the appointment of the new executive team.
Verbatim Quotes
What’s Next
- October 1: Online equipment auction for the closed Columbus location begins.
- October 15: Auction closes, finalizing the sale of ovens, mixers and other assets.