Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

After years of explosive growth, Crumbl has tapped the brakes — and it’s beginning to show in the numbers. The cookie franchise, which once opened nearly one store per day, slowed its expansion significantly in 2024, adding just 81 new locations compared to an annual average of 276 from 2021 through 2023. According to its newly released Franchise Disclosure Document (FDD), the strategy shift appears to be stabilizing unit-level performance, Restaurant Business Online recently reported. 

The average Crumbl franchise location generated nearly $1.4 million in revenue in 2024, up 17% year-over-year. But while top-line sales rebounded from a dip in 2023, profitability tells a more complicated story. The median net profit fell 32% to $77,359, even as the average net profit more than doubled to $251,706 — a spread that suggests significant variance across franchisees. In fact, 43% of locations exceeded that average figure, but many fell well below.

This recalibration follows a tumultuous 2023, when declining per-unit volumes and rising operating costs forced the closure of several locations — the first since Crumbl’s 2017 founding. The brand has responded with new initiatives, including smaller cookie options, non-cookie desserts like cinnamon squares, and catering services, all aimed at diversifying revenue streams and reigniting consumer interest.

Despite these efforts, Crumbl’s strategy has raised questions in the industry. Some compare its trajectory to frozen yogurt chains that boomed and busted post-recession. Crumbl’s aggressive defense of its brand identity, expansion into new product lines, and pursuit of a reported $2 billion valuation hint at a company still evolving to find its next phase of sustainable growth.

Whether Crumbl’s current moves represent long-term stabilization or a pivot to recapture lost momentum remains to be seen. 

Read the full article here. 

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