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Crumbl closures offer glimpse into pressure on fast-casual, discretionary spending
KUTV • • business
Key Points:
- Dozens of Crumbl cookie stores have closed this year, reflecting broader economic pressures on consumer discretionary spending amid rising costs for essentials like gas and groceries.
- At least 57 Crumbl locations closed while 20 new stores opened, resulting in a net decline of 37 stores, with August sales reportedly 70% lower than two years ago according to an internal document.
- Crumbl’s pricing, starting at $14.99 for a four-cookie box, places it in the "in-between" category between fast food and higher-end dining, a segment currently facing challenges as consumers cut back on non-essential spending.
- Despite the closures, Crumbl’s rapid post-pandemic expansion and broader economic resilience, including a strong job market, suggest the closures do not fully represent the overall restaurant industry or economy.
- The company has not commented on the closures, sales decline, or franchisee support, and typical store sales reported over $1.1 million last year before expenses and profit.
