Cramble once had Americans line up to buy cookies. Now, the pink box faces a not-so-sweet reality.
The Utah-born chain is closing stores, laying off employees and facing declining sales, and its chief executive says it all starts at the top.
“The responsibility rests with me. It’s my fault that we’re in this situation today,” CEO Jason McGowan told franchisees. An internal company document obtained by Restaurant Business showed that sales in August were down 70% from the same month two years ago.
According to Placer.ai, traffic at Crumbl’s more than 1,000 locations is down 32% from the same period last year. At least 57 stores are expected to close by 2026, and the company has also laid off much of its franchise support team.
The weekly cookie ritual that once kept customers coming back appears to be losing its appeal.
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Crumbl’s August sales down 70% from two years ago
Crumbl is expanding faster than demand can support it. Average annual sales per store will peak in 2022 at nearly $1.84 million before falling to about $1.14 million in 2025, according to Restaurant Business.
August 2026 delivered another blow, with multiple franchisees calling it the worst month in the company’s history.
One Kentucky operator filed for Chapter 7 bankruptcy after closing its stores, while dozens of other stores were put up for sale.
External pressures have added to the pressure, including consumers cutting back on discretionary purchases due to rising prices, the waning excitement of weekly flavor declines, and increased use of GLP-1 medications. A PwC survey found that 61% of GLP-1 users were buying fewer sweets.
Still, McGowan acknowledged leadership decisions made an already challenging situation worse.
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Dirty soda experiment backfires for Crumbl
Dirty soda is considered Crumbl’s next growth engine. McGowan will market the drinks to franchisees in 2025 and expects sales to increase by 20%. Operators invest thousands, sometimes tens of thousands, of dollars in new equipment.
Instead, Restaurant Business said August’s soda week turned out to be Crumbl’s weakest week ever.
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Much of the backlash has focused on the drinks’ extremely high sugar content, particularly the 32-ounce “Crazy Cousins” charger, which combines Red Bull, Mountain Dew or Sprite, strawberry puree, pineapple and coconut cream.
Social media said the drink contained 186 grams of sugar and approximately 840 calories. Crumbl later told TODAY the actual number was 130 grams, still a large number.
Outside of Utah’s core market, the drinks failed to generate the foot traffic or higher spending that Crumbure expected.
Swig proves dirty soda can work too
The dirty soda category itself isn’t the problem. Made with soda, flavored syrups, cream and fruit, these drinks emerged in Utah more than a decade ago as an indulgent alternative to alcohol or coffee.
Founded by Nicole Tanner in St. George in 2010, Swig is widely considered the original dirty soda chain, according to the Wall Street Journal.
The company has more than 150 locations in more than 16 states and continues to sign multi-unit franchise agreements in markets including the Chicago suburbs, Boston, New Mexico, Texas and Florida.
The Larry H. Miller Company owns a majority stake in Swig, and its drive-thru format and small storefronts have attracted experienced operators.
Reality TV shows, particularly “The Secret Lives of Mormon Wives,” raised national awareness, but Swig was already expanding before the show amplified the trend.
McDonald’s and other chains profit from beverage trends
While Crumbl struggled with its dirty sodas, larger chains entered the category. McDonald’s launched craft sodas nationwide in early May 2026, including Sprite Berry Blast, Orange Dream and Dirty Dr Pepper with vanilla and cold foam.
Dunkin’, Taco Bell and other chains have also tested or added their own versions, according to Fast Company. The brands viewed dirty seltzer as an addition to existing menus rather than a major bet that required expensive equipment and sugary drinks, which immediately drew criticism.
What’s next for Cramble?
According to the Salt Lake Tribune, McGowan and co-founder Sawyer Hemsley announced in May 2026 that they would step back from day-to-day operations and continue to be involved at the board level once a replacement is in place. A new chief executive, chief financial officer and head of marketing are expected.
Crumbl has pivoted to great deals, including a $1.99 bundle that pairs 24 ounces of Zero Sugar Dirty Soda with a chunky chocolate chip cookie, for a total of about 170 calories. The company is also launching an expanded value menu, with items starting at 99 cents at participating stores.
September’s theme week improved, but sales are still about 50% below levels two years ago. According to Restaurant Business, the median store profit per month is only $1,832.
Whether lower prices and a renewed focus on its signature cookies can stabilize its roughly 1,000 remaining stores remains an open question.
Crumbl’s rise and fall is a reminder that viral fame can quickly fill stores, but the next big idea still has to give customers a reason to come back.
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