Crumbl Cookies, a dessert chain known for its giant cookies, has become one of the fastest-growing businesses in the United States. In just six years, since it started in 2017, Crumbl has turned its big, tasty cookies into a billion-dollar business. According to The Wall Street Journal, Crumbl owes much of its success to social media. Their fun, weekly announcements of new cookie flavors, often shared through eye-catching photos, have made them incredibly popular among kids, teenagers, and young adults. This excitement on platforms like Instagram and TikTok has helped the brand become a household name.
The first Crumbl store opened in Utah, and its immediate success showed the potential for growth. The company quickly decided to focus on franchising, which means allowing other people to open their own Crumbl stores under the company’s brand. This strategy worked very well. In 2018, Crumbl had only 15 locations. By 2023, that number had skyrocketed to 968 stores across the United States. These stores together generate over $1 billion in sales every year, according to food-research firm Technomic.
Success Isn’t Guaranteed for Everyone
However, not every store owner is making a lot of money. According to Crumbl’s franchise disclosure document (FDD), the average Crumbl store made $1.16 million in revenue in 2023. After all expenses were paid, the average net profit was $122,955. But these numbers vary greatly. The most successful Crumbl store earned about $601,000 in net profit, while the store that performed the worst actually lost around $242,000. The top-performing store made almost $3 million in sales, which shows that some locations do exceptionally well, while others struggle.
High Startup Costs and Fees
Starting a Crumbl store isn’t cheap. The costs to open a new location range between $460,000 and $1.3 million. A large chunk of this money goes toward real estate, rent, and buying equipment for the store. On top of these costs, Crumbl takes a percentage of each store’s sales. There is an 8% royalty fee and a 2% marketing fee, which can eat into profits. These fees are necessary to keep the brand running and help with national advertising, but they also reduce how much profit store owners take home.
Challenges with Profit Trends
While Crumbl’s growth has been impressive, not everything is going smoothly. In 2023, the average net profit per store dropped by 59% compared to the previous year. This was the first time profits declined, and it has raised concerns about how quickly the company is expanding. Some experts believe that opening too many stores too quickly can lead to challenges, such as increased competition between locations and difficulties maintaining quality and service.
Despite these challenges, Crumbl’s cookies continue to attract a loyal customer base. Many fans eagerly wait each week to try the newest flavors, which keeps the excitement alive. If the company can address these financial issues, there is still a lot of potential for Crumbl to grow even more and stay on top of the dessert industry.
For now, Crumbl remains a popular and influential brand, proving that a simple idea — giant, delicious cookies with creative flavors — can turn into something huge with the right strategy and marketing.
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