Utah-based cookie chain Crumbl is closing at least 57 locations across the United States in 2026 after foot traffic fell 32% year-over-year. Co-founder and CEO Jason McGowan took public responsibility for the downturn as franchisees face economic pressures.
Traffic at the company’s more than 1,000 locations fell 32% year-over-year, according to data from the tracking firm Placer.ai.
A franchise location in Saint Matthews, Kentucky, which first opened its doors in February 2024, permanently closed after its owner, Red Sheep St. Matthews LLC, filed for Chapter 7 bankruptcy on October 1 (The U.S. Sun). The bakery pulled in just over $128,000 in gross revenue through mid-September according to the filing. Richard and Emily Diamond, who own Red Sheep St. Matthews LLC, operate two additional Crumbl locations in the Louisville region, though their attorney told Louisville Business First that the bankruptcy filing will not impact those stores. Following the closure, five locations remain in the Louisville area, including a store that opened in August on Dixie Highway in Valley Station. Another Crumbl shop located at 4034 Morse Crossing near Easton in Columbus, Ohio, which opened in January 2022, also closed its doors, with its remaining equipment scheduled for an online auction through local auctioneer Paul Delphia.
CEO Jason McGowan Takes Responsibility for Company Downturn
CEO Jason McGowan addressed the brand’s struggles directly in a presentation to store operators.
“The restaurant industry is facing real headwinds right now, and Crumbl is no exception. I could point to them, but that doesn’t solve anything. As a leader, I should have anticipated them sooner and adjusted our course. That’s on me.”
Jason McGowan, CEO and co-founder
During his presentation to franchisees, McGowan also stated, I'm the CEO and the buck stops with me. It's my fault where we are today.
Jonathan Maze, editor-in-chief of Restaurant Business, reported that at least 55 franchises are listed for sale on various broker websites. In addition to the store closures, the company carried out layoffs at its Lindon, Utah, headquarters (FOX 13 News Utah).
Consumer Spending Habits Shrink Bakery Revenues
Robert Spendlove, senior economist at Zions Bank, noted that rising household costs for essentials are forcing consumers to cut back on small luxuries (KJZZ), explaining that people trying to adjust to constant pressure from rising prices and higher inflation will trim items they view as luxuries when they do not feel great about the economy.
A standard four-cookie Crumbl box starts at $14.99, placing the product squarely in the discretionary treat category (KJZZ). Data published by Restaurant Business showed that Crumbl’s average annual sales per location dropped to $1.14 million in 2025, down from a peak of $1.84 million in 2022, following earlier averages of $1.27 million in 2020, $1.69 million in 2021, $1.16 million in 2023, and $1.36 million in 2024.
Soda Rollout Fails to Reverse Sales Drop
In 2025, leadership introduced a nationwide push into “dirty sodas” made with fountain soft drinks, projecting a 20% sales lift (Inc.).
Instead, the rollout of a 32-ounce version packing 186 grams of sugar generated online backlash over high sugar content, and McGowan noted that August’s Soda Week became the worst-performing week in the company’s history. Franchise owners also expressed frustration over the capital required for new equipment to produce the beverages, alongside operational fatigue from a rapidly rotating weekly menu that demands constant recipe adjustments and specialty ingredient sourcing (FOX 13 News Utah). Local owners were additionally reported to be upset regarding changes to the company’s Sunday Rule prohibiting stores from opening on Sundays, a policy that has been enforced, relaxed, and enforced multiple times over the years. Local owners were also upset regarding changes to the company's Sunday Rule prohibiting stores from opening on Sundays, a policy that has been enforced, relaxed, and enforced multiple times over the years,
said franchise operators.
