New from me: Crumbl was once the country's fastest growing restaurant chain in the U.S., a $1 billion brand in just six years and the largest cookie concept in the country. At one point its unit volumes were $1.8 million, a ridiculous sum for a cookie concept.
But it has been struggling over the past two years, which worsened this summer with a dirty soda introduction that only served to generate controversy. The company's "Dirty Soda Week" was the worst in its history, and August sales were down 70% over the past two years.
Stores are now closing. More could close but the company isn't allowing more closures without the possibility of liquidated damages.
We spoke with numerous franchisees for this story and analyzed documents and correspondence and watched a presentation from the company's CEO. Operators describe a chaotic operation that sometimes leaves them scrambling for supplies while sales bounce from one week to the next.
The business is also unusually punitive, with the company monitoring cameras inside the stores for violations such as more than one person walking into the store on a Sunday.
The company did not respond to requests for comment, but it is making management changes, a new CEO is close to being hired, and the chain plans to reduce its reliance on new cookies. Sales did improve some in September, particularly with Minecraft week (honestly, I'm surprised more chains don't do Minecraft promotions).
But it's been a tough road for one of the restaurant industry's biggest pandemic winners.
More here:
restaurantbusinessonline.com…