Crumbl dropped “cookies” from its name as it adds other treats, like key lime pie, to its menu.
Is cookie fatigue hitting consumers?
Crumbl, which dropped “Cookies” from its name as it adds other treats to its menu, filed its 2024 franchise disclosure document this month. Its Item 19 reports average store revenue last year from 571 stores was $1.16 million, down from 2022’s $1.8 million. That’s a 37 percent decrease year over year.
This is the first year Crumbl’s AUVs declined, according to previous FDDs.
The 2022 AUV included 324 units that were open the entirety of the year. Crumbl ranked No. 108 on the Franchise Times Top 400 list, with systemwide sales hitting $685 million that year, according to this publication’s estimate.
Last year, unit sales ranged from $589,291 to $4 million for the 571 stores operating all year, which accounts for about 59 percent of its unit count. Net profit ranged from a loss of $241,554 to earning $600,554. Average net profit was $122,955, a year-over-year decrease of $175,364, or 58.7 percent.
The cookie category added a number of players in recent years, and investors are taking an interest. Enlightened Hospitality Investments, led by Shake Shack founder Danny Meyer, invested $10 million in Chip City in 2022. New York City-based Chip City had just 14 units at the time and has 36 open now. Like many newer cookie brands, Chip City takes a weekly cookie line-up approach, similar to Crumbl.
Crumbl’s AUV is higher than its cookie competitors. Chip City’s AUV hovers around $850,000, according to the brand’s website.
Key lime pies are one non-cookie treat the company added to its menu as part of its rebrand to expand from just cookies.
Crave Cookies’ FDD reports revenue of $855,964 in 2022 for its Salt Lake City location. New York City-based Schmackary’s reports 2023 sales at its flagship Manhattan store hit $2.37 million. Without more data, it’s hard to say whether these brands will flourish outside of their initial, high-density locations.
The 970-unit Crumbl grew rapidly over the last few years and continued to do so in 2023, when the company opened 281 cookie shops. In 2022, the cookie franchise more than doubled its unit count, from 326 to 689. Crumbl acquired a store from a California franchisee last year, bringing its corporate-owned unit count to two.
Crumbl permanently closed seven stores last year, seemingly for the first time since 2020, when it closed one unit in Arizona, according to previous FDDs. Last year’s closures include one store in Utah, one in Georgia, one in Florida and four in California.
The franchise grew from just one store in 2017, when cousins Jason McGowan and Sawyer Hemsley launched the concept in Utah. Crumbl opened its 1,000th store earlier this year.
Last year, the brand bought pie company Crust Club, which has two stores in Pleasant Grove, and Logan, Utah. Crumbl is franchising the concept, and its first franchised location opened March 8.
The cookie brand releases new cookie flavors each week, and customers have consistently lined up for its products. Crumbl has an immense social media presence, with 7.4 million followers on TikTok and 4.4 million on Instagram.
The chain partnered with popstar Olivia Rodrigo’s Guts World Tour, unveiling a specialty cookie that comprises two purple vanilla cookies with triple berry jam and vanilla buttercream inside. The menu offering is available only at locations near her latest tour stop, just hours before her shows.
Last year, Crumbl sued competitor Dirty Dough for allegedly stealing and misappropriating trade secrets. Crumbl accused Dirty Dough of stealing and misusing 66 recipes and information about sales statistics, process improvement and recipe experiments, according to court documents.
The parties reached a settlement late last year, and Craveworthy Brands later acquired Dirty Dough.
Both brands declined to provide further comment at the time beyond a joint statement issued. Per the settlement, Dirty Dough returned any Crumbl information, and agreed to alter its cookie boxes to “eliminate any potential confusion for customers,” according to the statement.
“Crumbl and Dirty Dough are pleased that they have been able to work together to resolve this dispute and each remains dedicated to serving its customers with excellence,” the statement reads. “Crumbl and Dirty Dough wish each other success in their future endeavors.