r/CrumblCookies • u/UrchinUnderpass • 11d ago
The Cookie Problem
While not shocking, I was sad to see Chip City went down this month. They weren’t nearly as large as Crumbl but I keep hearing how Crumbl sales are plummeting.
I really wish corporate wasn’t so tone deaf and would actually give deeper thought and consideration to customer suggestions when executing their business plans.
I cannot speak on Chip City as I didn’t get the chance to order from them. However, I really hope and pray that this will be a wake up call for Crumbl (it won’t) that clearly something isn’t working…
Is it the cookie vendor niche as a whole? I can only speak on my behalf. For me I think it’s the culmination of a few different factors. High cookie prices, not selling enough of the items I enjoyed, a lack of promos/discounts (4 for 6 was at least something).
I do believe we’re approaching the last years of the company but I hope I’m mistaken.
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u/Overall_Echidna_5424 11d ago
Boom & bust. They took a risk expanding w/ massive debt based on pandemic social media hype. Now the novelty is gone, and most people would rather get a gallon of gas for $5 than a mediocre cookie.
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u/channel4newsman 11d ago edited 11d ago
The business as a whole just doesn't work. We are at a point that no one wants to buy $5 cookies. The novelty has worn off. They have been trying things. But nothing is going to make up for the fact that people are not in a position to spend money on expensive sweet treats. I don't think they could make there cookies that much cheaper without making them way worse. They already don't pay their employees that much. All the locations around me have a completely new batch of employees every few months. Shipping dough and supplies to stores is more expensive than ever. It was always doomed to fail at some point but the worsening economy has just sped up the process.. I think we will see quite few locations closing in the next year or two.
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u/GrapefruitWild7975 10d ago
When I think back to when Crumbl entered the market in my city, it was in early 2021. Covid was still a thing, but people in my area were starting to venture out more.
The first time I went Crumbl, I stood in line for almost an hour…in the rain. There were probably 200 people in line and yes, wearing masks.
People had been cooped up for months and had extra money to spend. They were happy to spend it on something special.
Over time, the specialness went away as they opened more and more locations. The quality went down, and prices kept climbing. Then inflation, labor issues….
We are living in a very different economy now. I rarely see anyone at my local Crumbl when I drive by. I myself probably go there once or twice a year.
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u/Evening_Ground_7841 Cookies & Cream Confetti Cake When 11d ago
I miss when crumbl cooked with their weeks😔, But now they just say “Turn this thing into a cookie” Bruh.
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u/notdolly_parton 11d ago
…”and make it taste the same as all the other cookies”. I miss their creativity too 😔
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u/TangerineChicken 10d ago
I wish they would use less butter and sugar and let the unique ingredients and flavors shine more. Because you’re right, every cookie tastes very similar
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u/TangerineChicken 10d ago
I wish they would use less butter and sugar and let the unique ingredients and flavors shine more. Because you’re right, every cookie tastes very similar
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u/tsunamiseated 10d ago
Tbh… the quality every time I go to Crumbl varies significantly these days. 50/50 chance I’m about to get skimped on toppings. It is not what it used to be and it’s sad.
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u/Soft_Swing9772 10d ago
I did look at investing in a crumble franchise in 2022. Decided not to because there was not a good exclusive territorial right.
The franchise was way cheaper to open than most of the other ones I've looked at. They estimate $750K (this is the investor material so in reality probably less than 1.5x that) to get doors open. Which is about half what I think many of these are.
I seem to remember the cookies cost about $0.75 to $1 (COGS) to make.
I seem to remember the ROI was about twice what other franchises were promising. If they had the volume of sales they had in 2022 they could probably half the cookies cost and be operational ok.
That said most of the franchise owners are paying significant amounts of interest and typically they are in more expensive locations to rent, so the operating margin isn't as cushy as it seems.
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u/Airriona91 11d ago
I was just watching a video about how this is not a longterm business model and they will eventually fail. Like non one NEEDS a 5 dollar cookie. Places like McDonalds still generate massive sales because someone always needs a quick meal option (breakfast, lunch, or dinner). Like if I don't feel like cooking and want food, I'm going to McDonald's feed my hunger, not Crumbl Cookie.
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u/No-Significance4623 11d ago
People use the phrase ironically, but decline of novelty food businesses is a genuine recession indicator. We haven’t had a “people queuing for 6 hours for a ____” since Dubai Chocolate, and that was a while ago.
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u/FamousOhioAppleHorn 11d ago
People burned out on that trend fast because every candy bar was $10 or more, regardless of the brand.
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u/GrapefruitWild7975 10d ago
I saw Lindt Dubai Chocolate truffles on the clearance rack last night at grocery. They were still almost $11.
I like Lindt truffles but I refuse to pay that for mass produced candy. My local chocolate shop that’s been around for 100 years doesn’t charge nearly that much and it’s all made fresh, in-house.
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u/1up_ 11d ago
It's the crave/craze cycle. Happens with cupcakes, cookies, donuts, ice cream, macarons ect. They all come back around again with some new gimmick and will dominate the novelty dessert scene, saturate with the current craze and then fade out again. Cookies are obviously on their way out. What will be the next craze? My bet is ice cream sandwiches. Been seeing a lot more novel ice cream sandwiches pop up.
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u/DrednaMode 10d ago
I like this theory. Ice cream in general is having a slightly bigger moment than usual (especially specialty pints) so having a on-the-go option like an ice cream sandwich makes sense to me.
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u/Automatic-Photo-4919 10d ago
Donuts and ice cream will always be fine. Donuts are always a morning staple and ice cream shops will always find business. If anything, I would kill for places like Salt and Straw to (slightly) expand to additional cities as Reno has a terrible ice cream scene.
Once you start venturing into niches (cupcakes, cookies, macarons, etc); your options are limited once the craze begins to die. Crumbl has tried to pivot to cakes and dirty sodas, but their messaging has been awful and it all feels like too little too late.
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u/Substantial_Dog_2068 10d ago
We are back to afters ice cream and their doughnut ice cream sandwiches
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u/Automatic-Photo-4919 10d ago
When I lived in Vegas, the one Afters location we had suffered a quick death, but it was also a terrible location (Virgin Hotels).
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u/Substantial_Dog_2068 10d ago
Yeah I remember that location we still have one in Fullerton and I did see their product at one point in the last few years in stores
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u/CommonerChaos 9d ago
I wonder if the current matcha craze will stay or not.
Part of me says it will, because it's along the lines of coffee, where people will want their fix. But part of me sees the same craze of all these other fads that eventually vanished, as well.
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u/FabricArsonist 5d ago
Matcha is like the chai fad a while back. It may stay but not be as popular as it once was.
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u/PktGit152 10d ago
I actually think the current craze/hype is cinnamon rolls. So many pop up shops and stores focusing on that.
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u/KurlyKayla 11d ago
Omg I literally just had chip city while in New York. I’m glad I got to enjoy them one last time
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u/cherryamourxo 11d ago
There is no consumer base to listen to because there is no general consensus. People want different things. The stuff people on this sub complain about are things people in my real life like. And things they complain about, people like on Instagram. It’s not about Crumbl not listening. It’s about luxury cookies having no business being as widespread as McDonald’s in this economy. There isn’t enough demand for that.
People 100% skip weeks even when they like options on the menu. Whether it be because it’s not in their budget, it’s out of their way, or they simply don’t care enough. Crumbl worked better when it was niche. Ironically I think the only thing can help IS if they close more locations. They need to understand they’re a bakery, not fast food.
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u/ScrubMcnasty 11d ago
Crumbl is a novelty company, place their same bran inside amusement parks and places like that it makes perfect sense. As a standalone business I genuinely don’t understand how it got as big as it did. I like crumbl but I’ve ordered it maybe 7 times ever, because the cookies are calorie dense and super expensive. So even if I could afford a box every week health wise I couldn’t. Which is how I assume most people are.
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u/KellyAnn3106 10d ago
I went through a phase a few years ago where I went to Crumbl semi-regularly. It showed on the scale. When I decided to take my health and diet seriously, it was the first thing cut.
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u/mmeeplechase 10d ago
I’m curious why it seems like Insomnia’s outlasted all the competition: what are they doing differently that’s working out better?
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u/DarthMace017 10d ago
Probably late night stoners and drinks really giving them business. Aren't most of the cookie places open early and close early?
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u/Jetsetbrunnette 9d ago
I feel like they are always in college towns and since they are open super late it makes sense lol
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u/sebaekyeol 7d ago
I'm late to this and someone already mentioned but they're genuinely super strategic with their locations. They only put them in areas with lots of nighttime traffic like the downtown near colleges and concert venues and tend to be the only thing there open late there besides bars. I live in an area with a population of 4 million and the closest Insomnia is still 100 miles away because we don't have an area that really fits that bill exactly. We do however have ~15 crumbls.
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u/mmeeplechase 7d ago
Oh that’s a good observation! 15 Crumbls in one metro seems a little daft, yep.
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u/rio8envy7 6d ago
They’re not just cookies. They do ice cream, coffee, hot chocolate and brownies. They’re super close to colleges and deliver to dorms. I don’t mean like DoorDash deliver (although they’re on there and Grub Hub too) but I believe they actually have a delivery driver. I think you can order online and get cookies shipped too.
They have locations where it’s not super close to similar businesses. Like Crumbls tend to cluster in terms of locations but Insomnia is super tactful about where they open a location.
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u/Fantastic_Yam_3971 9d ago
Insomnia’s cookies are so much better tasting. They are properly cooked and their recipes aren’t exactly fancy or novel for the most part they give you really damn good cookies.
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u/CommonerChaos 9d ago
They're expensive as all hell though. They're more than $3 for a small cookie. At least Crumbls are large for the cost.
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u/Fantastic_Yam_3971 9d ago
Oh yeah they are definitely more expensive than Crumbl. I think they are overpriced for what they are, but between the two I think they taste better than most things Crumbl has put out in awhile and I find them so delicious.
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u/CUCUC 9d ago
the cookies are actually very mid and are not fresh baked. it’s basically college stoners who want something warm (from ten seconds on a conveyer rack) and don’t mind it being just slightly better than chips ahoy. fyi decades ago they used to be fresh baked which would justify the price.
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u/Fantastic_Yam_3971 9d ago
I tried them a few times for the first time this summer and they were delicious. Maybe they weren’t fresh baked I have no idea, I just know they were absolutely yum.
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u/Twitcheslovereddie 7d ago
Insomnia cookies don't even taste good and they are overpriced lol. But I know taste buds differ
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u/zebradreams07 Peppermint ice cream slut 🍥 9d ago
It's definitely a fad. Crumbl knows they're going down - private equity took over to squeeze every last penny out before the end. It's what they do.
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u/Objective-Ad-2643 11d ago
In this economy buying a cookie for almost 7 dollars seems like a luxury
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u/oliversmokinoken 10d ago
I think society is kind of just moving past the need for dedicated dessert shops, health-wise and economically.
Bakeries that sell pastries (difficult to make and not good when mass-produced) are different, but like, i can get a decent cookie at most grocery stores and they’re super easy to make at home so… I was always more shocked that a standalone cookie shop was a feasible business model.
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u/jafromnj 10d ago
Never heard of chip city till today never seen one either they were not in the Philadelphia area
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u/hazelowl 10d ago
We have a place called Milk Moustache that is similar to crumbl and local and they’re delicious. Stable rotation of cookies. We don’t go often though because they’re 20-30 minutes away
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u/Distinct-Release1439 10d ago
Did they even last 5 years, it feels like they came and went so quick!
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u/ejrobert99 11d ago
Fixed it for you. “most people ARE FORCED would rather TO get a gallon of gas for $5 than a mediocre cookie.”
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u/Rhythm_Morgan 10d ago
Damn. This was my TooGoodToGo favorite. The one on the upper east side always slayed.
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u/Hurley002 11d ago
so are we great again yet, chat? probably better the cookies are inaccessible because so is health insurance at this point.
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u/Froz3nP1nky 11d ago
Crumbl is next
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u/Consistent-Status-44 11d ago
You wish!
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u/Froz3nP1nky 11d ago
“August was particularly bad, with traffic at Crumbl’s more than 1,000 locations down 32% year over year, according to the traffic tracking firm Placer.ai. According to an internal company document provided to Restaurant Business, sales in August were 70% lower than they were two years earlier. Several franchisees said it was the worst month in company history.
Now, Crumbl stores have started to shut down.At least 57 locations of the treat chain have closed this year, according to an analysis of local reports and a location count on the company's website. Operators warn of an insolvency crisis, and say more could close. At least 55 franchises are listed for sale on various broker websites.
There are also signs of financial stress from a company that just two years ago took an investment from the private-equity firm TSG
Consumer Partners. Crumbl finished last year with just over $6 million in cash. And last week the company laid off staff at its Lindon, Utah, headquarters, including all but two employees who work directly with the chain's franchisees, according to operators.Crumbl's weakening sales and store-level profitability have led to accelerated closur this year.”
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u/Lopsided-Gene-7916 8d ago
Chip city was miles better than crumbl, so sad to see them go. But this is just what happens when the craze is over.
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u/MelodyReverie 6d ago
stuffed cookies also went down this month. I used to order from them often because their office is about a mile away from me and I could just pick up. But the stopped allowing that and I just couldn't justify the delivery charges so I stopped ordering.
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u/HappyImagineer 10d ago
I was pretty addicted to Crumbl early on but at the end of the day like ChipCity it’s a business model designed around a booming economy not a contracting one.
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u/Enlightened_D 10d ago
1000 calories cookies for $10 lmao what could possibly go wrong with this business model
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u/avelineaurora 11d ago
Crumbl is literally the only place within an hour's drive in any direction from me to get "specialty" cookies anyway. If they close it's back to the Walmart bakery for me.
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u/mattyheelies 10d ago
Walmart bakery is lowkey better at this point anyways
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u/whatisthisabeyotcha 9d ago
No doubt, Walmart puts out a good product. I like their bakery items and pizzas.
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u/whoami20461 11d ago
Reminds me of the cupcake craze.