Crumbl Cookies is facing a lot of pressure in 2026 as dozens of stores close, sales decline sharply and at least one franchisee files for bankruptcy.
At least 57 Crumbl locations have closed across the United States so far this year, while dozens more franchises have reportedly been listed for sale.
Crumbl Sales Fall Sharply
An internal company document reportedly showed that Crumbl’s August sales were 70% lower than they were two years earlier. Meanwhile, foot traffic across the chain’s more than 1,000 locations had fallen 32% year over year.
CEO Jason McGowan has taken responsibility for the downturn, and told franchisees that “the buck stops with me.” McGowan and co-founder Sawyer Hemsley announced earlier this year that they would step back from day-to-day leadership, while Crumbl is preparing to bring in a new CEO, CFO and head of marketing.
One attempt to boost sales was Crumbl’s move into so-called dirty sodas. The company hoped the drinks could lift sales by around 20%, but the rollout failed to deliver the expected turnaround. McGowan said August’s Soda Week became the worst-performing week in the company’s history.
Bankruptcy Adds to Crumbl Closure Concerns
The problems have also reached individual franchisees. A Crumbl location in St. Matthews, Kentucky, recently closed after operator Red Sheep St. Matthews LLC filed for Chapter 7 bankruptcy.
Court filings showed roughly $352,780 in liabilities against just $10,000 in reported assets. The business also said it lost more than $17,000 in 2026, excluding principal payments.
Another Crumbl store near Easton in Columbus, Ohio, closed in September after less than four years in business. Its ovens, mixers, refrigerators and other equipment are now being auctioned.
Despite the closures, Crumbl has not announced plans to shut down the company. The chain still operates more than 1,000 stores. However, falling traffic, weaker sales and franchisee pressure suggest Crumbl is entering one of the most challenging periods since its national expansion began.
