Crumbl is facing a period of significant financial instability as declining sales and increasing store closures impact the Utah-born cookie chain, a trend evidenced by the recent closure of its Red Cliffs Drive location in St. George. The company, which grew from a small Logan shop in 2017 into a nationwide empire of over 1,000 stores, is now grappling with a sharp downturn in customer traffic and rising pressure on its franchise owners.
National Closures and Local Impact
The recent loss of the St. George location highlights a broader national struggle for the specialty dessert brand. According to a report by 890kdxu.com on Oct. 8, 2026, the Red Cliffs Drive location has closed, leaving only the Auto Mall Drive store as the remaining Crumbl in St. George. This local closure mirrors a nationwide trend where at least 57 Crumbl locations have closed so far in 2026, according to data analyzed by Restaurant Business and reported by 890kdxu.com.
Sharp Decline in Customer Traffic
The decline in sales has been particularly severe this year. Customer traffic at the chain's more than 1,000 locations dropped 32% in August compared to the previous year, according to traffic tracking firm Placer.ai. This downturn was reported by both 890kdxu.com and Restaurant Business. Furthermore, an internal company document provided to Restaurant Business on Oct. 1, 2026, revealed that sales in August were 70% lower than they were two years prior, prompting some franchisees to describe the month as the worst in the company's history.
A History of Rapid Expansion
Crumbl's rise was characterized by explosive growth driven by social media virality and a rotating weekly menu. Founded by cousins Jason McGowan and Sawyer Hemsley in Logan in 2017, the brand expanded from 55 stores in 2019 to 327 in 2021, eventually exceeding 1,000 locations by 2024. In 2025, the company reached 1,101 stores, though current counts sit closer to 1,064 as closures begin to outpace new openings.
Fluctuating Sales and Menu Complexity
Despite the rapid expansion, average annual sales per store have fluctuated significantly. Sales per store climbed to approximately $1.7 million in 2021 and peaked at roughly $1.84 million in 2022. However, they dropped sharply to about $1.16 million in 2023, recovered to $1.35 million in 2024, and slipped again to approximately $1.14 million in 2025. This volatility is compounded by the complexity of the rotating menu, which debuts new recipes every Monday and requires franchisees to train staff and order specific ingredients on short notice.
Pressure on Franchisees and Headquarters
The financial strain is being felt by both the corporate headquarters and individual operators. Restaurant Business reported on Oct. 1, 2026, that the company recently laid off staff at its Lindon, Utah, headquarters, retaining only two employees who work directly with franchisees. Additionally, at least 55 franchises are currently listed for sale on various broker websites, and operators have expressed concerns regarding a potential insolvency crisis.
Executive Accountability and Future Strategy
CEO Jason McGowan has acknowledged the difficulties facing the company and has accepted responsibility for its current performance. In a presentation to franchisees, McGowan stated that the situation has been painful at the corporate headquarters and noted, "the buck stops with me. It's my fault where we are today." To combat the decline, the company has experimented with menu expansions, such as a line of dirty sodas, though these efforts have not yet successfully reversed the downward trend in sales.
Focus on Profitability Over Growth
As the company moves forward, its focus appears to be shifting from rapid expansion to maintaining profitability. While Crumbl remains a major name in specialty desserts with over 1,000 locations, the company's new phase involves testing products through a specialized program to identify 'home runs' that can sustain the business's long-term viability.
