Crumbl Closes 57 Stores as Sales Fall and Layoffs Mount

Rising operating costs and weaker consumer spending are putting pressure on Crumbl, the Utah-based cookie chain that has closed at least 57 locations in 2026 and laid off employees at its Lindon headquarters. Reports published October 8 and 9 indicate that falling sales, declining customer traffic, and disagreements over business decisions have compounded the company's challenges.

According to Restaurant Business, Crumbl's August sales were 70% lower than in the same month two years earlier. Customer traffic across its more than 1,000 locations fell 32% year over year, based on data from analytics firm Placer.ai cited by the publication.

The downturn has also affected individual franchise operators. At least 55 Crumbl franchises were listed for sale on various brokerage websites, according to Restaurant Business. The chain continues to operate approximately 1,000 locations nationwide despite the closures.

Financial figures cited by Restaurant Business show that average annual sales per Crumbl location fell to $1.14 million in 2025, down from a peak of $1.84 million in 2022. Average sales were $1.27 million in 2020, rose to $1.69 million in 2021, and reached their highest reported level the following year. They subsequently declined to $1.16 million in 2023, recovered to $1.36 million in 2024, and fell again in 2025.

Robert Spendlove, a senior economist at Zions Bank, linked the company's difficulties to consumers becoming more cautious about discretionary purchases as prices rise. He said households facing persistent inflation may be less willing to spend on premium treats and other nonessential products.

"People just don't feel great about the economy," said Robert Spendlove, senior economist at Zions Bank.

Spendlove said inflation and sustained price increases have contributed to that uncertainty, potentially reducing demand for products consumers consider luxuries. He also questioned the timing of business expansion beyond a company's established products.

"Once consumers start to pull back, those less-tested or untested ideas can be kind of exposed," said Robert Spendlove, senior economist at Zions Bank.

One strategic change cited in the reports was Crumbl's introduction of dirty sodas, flavored soft drinks that became popular in Utah. Restaurant Business reported that franchisees were frustrated by the expense of purchasing equipment needed to prepare the beverages, which failed to generate the anticipated connection with customers.

The company's rotating cookie menu has also created operational challenges, according to Restaurant Business. Franchise operators must regularly learn new recipes and source ingredients that may be used infrequently, adding complexity to store operations.

Another source of tension involved Crumbl's Sunday Rule, which prohibited stores from opening on Sundays. The policy was enforced, relaxed, and reinstated at different points, prompting dissatisfaction among some local franchise owners.

During a presentation to franchisees in September, CEO Jason McGowan acknowledged the company's difficulties and accepted responsibility for its performance, according to Restaurant Business.

"I'm the CEO and the buck stops with me. It's my fault where we are today," said Jason McGowan, CEO of Crumbl.

Founded in Logan, Utah, in 2017 by McGowan and Sawyer Hemsley, Crumbl expanded rapidly during the years following the pandemic. Restaurant Business reported that the chain's average store profit margins exceeded 21% annually from 2019 through 2021.

The closures have reached Central Ohio, where Crumbl's Easton store at 4034 Morse Crossing in Columbus has shut down. The location opened in January 2022, and local auctioneer Paul Delphia scheduled an online auction for its remaining equipment through October 15, with an open house planned for October 12, according to 614now.com.