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Utah-based Crumbl closes dozens of locations as inflationary pressure takes a bite out of sales
KSL News • • business
Key Points:
- Utah-based cookie company Crumbl is closing 57 stores and laying off employees at its Lindon headquarters following a significant drop in sales, with August sales down 70% compared to two years ago.
- Economic pressures such as rising prices and inflation are causing consumers to cut back on discretionary spending, contributing to Crumbl's downturn, according to Zions Bank economist Robert Spendlove.
- Crumbl's recent introduction of "dirty sodas" proved costly, and experts suggest that during economic slowdowns, companies should focus on core products rather than experimenting with new offerings.
- CEO Jason McGowan has publicly taken responsibility for the company's current challenges, stating, "I'm the CEO and the buck stops with me."
- Despite the closures, Crumbl continues to operate approximately 1,000 locations nationwide.
