The cookie empire built on pink boxes and a rotating menu is losing its crunch. Crumbl closures have reached at least 57 stores this year, according to a Restaurant Business investigation published Oct. 1.
That count is the trade publication’s own tally. It comes from local reports and the location list on Crumbl’s website, and it does not subtract new openings. Crumbl’s site still listed 1,071 locations as of Oct. 7, so the chain is hardly gone. It is just shrinking for the first time.
How bad is the Crumbl sales slump?
The sales numbers explain the pain behind the Crumbl store closures. Average annual sales per location fell to $1.14 million in 2025, per KUTV’s summary of the report. At the 2022 peak, that figure was $1.84 million. That is a drop of roughly 38%.
The 2025 number comes from Crumbl’s franchise disclosure document, which QSR Magazine also covered. One caution applies. The pool of stores in each year’s disclosure changed, from 324 in 2022 to 776 in 2025. So the comparison is useful, but it is not perfectly apples to apples.
Recent months look worse. Placer.ai data shows traffic across the chain’s 1,000-plus locations fell 32% year over year in August. An internal company document, seen by Restaurant Business, put August sales 70% below two years earlier. Several franchisees called it the worst month in company history. Keep in mind that the 70% figure rests on a single document, and the traffic number is an estimate.
The CEO says the Crumbl closures are his fault
Crumbl’s boss is not dodging. CEO Jason McGowan told franchisees, “I’m the CEO and the buck stops with me. It’s my fault where we are today,” as Fox 13 Salt Lake City relayed from the Restaurant Business report. The Crumbl shutdowns have clearly weighed on him.
Much of the blame lands on the dirty soda rollout. McGowan pitched the drinks to franchisees in 2025 and predicted a 20% sales boost. Instead, owners say, the boost never came. Many were also angered at having to pay thousands of dollars for new equipment.
Headquarters is feeling it too. Operators say Crumbl laid off staff at its Lindon, Utah, offices, including all but two employees who work directly with franchisees. In May, McGowan and co-founder Sawyer Hemsley also announced they would step back from day-to-day roles, KSL reported. Crumbl is not the only chain trimming locations, either. Kings Food Markets is closing two New Jersey stores, with 122 jobs at risk.
Why Crumbl cookie closures cost franchisees so much
Here’s the thing: closing a bad store is not simple. Crumbl’s franchise documents let the company charge up to three years of future royalties and marketing fees on a closed location. A committee must also approve any closure. Several operators say it is not approving any right now.
That squeeze is showing up in the courts. A franchisee that runs a St. Matthews, Kentucky, store filed for Chapter 7 bankruptcy on Oct. 1 with more than $352,000 in liabilities, TheStreet reported. At least 55 franchises are also listed for sale on broker websites.
What’s next after the Crumbl closures?
The 57 closures are not one corporate decision. They are individual owners giving up, one store at a time. I found no on-record Crumbl response to the Oct. 1 report. Other legacy brands are chasing a fresh start as well. KFC just unveiled a global makeover, and Crumbl may need something just as bold.
Operators warn that more Crumbl closures could follow. McGowan has reportedly promised a new CEO, CFO and marketing chief soon, though that detail has not been confirmed at a primary source. The question hanging over every pink box: does a brand that grew from 55 stores in 2019 to more than 1,000 find its footing, or does the sugar rush just end?
