Crumbl Faces Steep Sales Drop; CEO Admits Responsibility

Crumbl’s rapid rise has stalled, and the company’s chief executive has acknowledged the shortfall to franchise owners, saying the leadership must answer for recent missteps. An internal memo reviewed by reporters shows August revenue ran about seven-tenths lower than it did two years earlier, a dramatic reversal for a brand that boomed after the pandemic.

Foot traffic data from location analytics firm Placer.ai indicate visits to the chain’s more than 1,000 shops fell by nearly one-third year over year. The brand has shuttered at least 57 outlets so far this year and has pared back a large portion of its franchise support team, moves that have left some franchisees scrambling to cover basic operations.

Company leaders had pinned hopes on a line of flavored “dirty” sodas introduced this year, projecting roughly a one-fifth lift in sales. Instead, a 32-ounce offering containing 186 grams of sugar drew intense criticism online and, according to the CEO, contributed to what he called the worst week in recent company history. “I accept responsibility for the choices we made,” Jason McGowan told franchise operators in a recent meeting, adding that the chain misjudged customer sentiment.

McGowan and co-founder Sawyer Hemsley announced in May they would step back from day-to-day management. The company says it will name a new chief executive soon and is recruiting for a chief financial officer and a marketing lead. Industry observers say the shift was inevitable after rapid expansion stretched company systems and a few high-profile product flops damaged brand trust.

Local owners and consumers will likely determine whether Crumbl can rebound. Franchisees are pressing for clearer product testing, tighter cost controls and more consistent support from corporate. Analysts say trimming the menu, retooling promotions and restoring franchise services are the immediate priorities if the cookie chain hopes to repair sales and placate anxious owners.