If you’re on TikTok, Reddit, or anywhere that talks food, you’ve probably seen at least a rumor or two: “Is Crumbl shutting down?” “Are they going bankrupt?” Let’s just cut to the main question first no, Crumbl Cookies is not going out of business. But to understand where all these rumors come from, and how the company’s actually doing, we need to look at Crumbl’s story over the last few years. It’s a pretty wild ride for a company that, not long ago, seemed on track to take over the world, one box of pink-frosted cookies at a time.
Crumbl’s Business Condition in 2024: More Complicated Than You’d Think
Crumbl exploded onto the bakery franchise scene in 2017, promising super-sized cookies in wild weekly flavors. By 2021, they were everywhere. You couldn’t scroll Instagram or TikTok without seeing someone break open a gooey chocolate chip or making a reaction video about one of their crazier menu drops.
But like any business that expands fast, the peaks don’t always last. Over the last two years, Crumbl started facing real challenges. If you only look at the buzz online, it might seem like they’re in free fall. If you check the facts, it’s a lot more complicated.
Challenges: Store Closures, Declining Profits, and People Getting Picky
Let’s start with the store closures. Crumbl’s first-ever permanent closures hit in 2023. Seven locations shut down across Utah, Florida, California, and Georgia. This surprised some fans, since only a year before, new stores were popping up in suburbs and shopping centers almost every week.
Fast forward to 2024, and the closing list grew longer. At least a dozen locations closed, and for 2025, early reports suggest more closures, though the exact number isn’t confirmed yet. These aren’t just random shutdowns some stores, like the Norwalk, Connecticut location, closed after just a year of business.
It’s clear the performance isn’t consistent across the map. Some regions just didn’t have the same lasting demand. In some places, initial curiosity faded fast people tried Crumbl once or twice, then moved on.
Financially, things got bumpy, too. Back in 2021, Crumbl reached a peak with about $47 million in revenue. These are heavy-hitting numbers for a specialty bakery chain. But after that high-water mark, revenue took a dip. There’s been a little rebound lately, but the overall trend isn’t as rosy as those early days.
The bigger issue? Median net profits dropped by about 32%. Some top-performing stores are still raking it in, but they’re now carrying the weight for lots of under-performing locations. A lot of this can be traced to aggressive expansion Crumbl opened a ton of stores, maybe faster than real lasting demand could keep up. That leads to oversaturation and some pretty thin profit margins, especially when costs are high, and cookie hype is cooling.
The Social Media World Moves On
Ask Crumbl’s biggest fans, and they’ll say the cookies are still great. But that TikTok buzz isn’t what it once was. Social media just isn’t filled with the pink box unboxings and big reactions like it used to be. Even on Reddit, where customers and even employees talk, there’s more talk about business slowing down, both in terms of traffic and actual sales.
Some folks complain about too many menu changes Crumbl swaps flavors every week, which sounded fun at first. After a while, “menu fatigue” hits, especially if the “new” flavors start feeling recycled or miss the mark. Then there’s the question of price nearly six bucks for one cookie, sometimes topping 980 calories, makes them what people call “an expensive indulgence.” For some, it’s a special treat. For others, it’s just not worth it every week.
Crumbl knows the vibe is changing. To fight falling sales, they’ve started rolling out smaller cookies, brownies, and even pies. It’s a sign the company is trying to find new ways to win over both brand-new and once-core customers.
Clearing the Air: What the CEO Says
With more closures and layoffs making headlines, naturally, rumors of bankruptcy started flying. But in February 2024, CEO Sawyer Hemsley put out a statement squarely rejecting the idea that the company’s shutting down. He took to TikTok yes, the same app that made Crumbl “famous” and explained what’s actually going on.
Hemsley said the company wasn’t closing up shop at all. The main office just moved to a bigger location, with a test kitchen and expanded marketing space. He tried to put a positive spin on things: “We’re excited for what’s ahead, and honestly, we’re just getting started.”
He didn’t shy away from the challenges, though. Reports confirmed that layoffs and some restructuring happened in 2023. The rapid boom years are over, but the company’s still standing and, at least according to Hemsley, looking to get smarter about how and where they grow.
Some Stores Actually Got Busier Here’s Why
For all the closures and setbacks, it’s worth mentioning that some Crumbl stores are actually doing better now that the company pulled back on new expansion. In spots where the brand didn’t saturate the market, sales per restaurant reportedly rose about 17% once expansion slowed down.
Basically, by opening fewer new locations, older stores in less crowded areas got a better shot at keeping sales up. This shift is letting Crumbl focus more on profitability, not just sheer growth. It’s a classic move: get leaner and smarter after a few years of breakneck growth, instead of running stores just for the headline of “Open #500.”
Crumbl’s team is also pumping up local marketing and testing more direct customer rewards programs. There’s a push to remind longtime fans why they liked Crumbl in the first place and make sure new menu items are actual hits instead of just experiments.
Loyal Customers, But Tough Competition
One thing that hasn’t changed is Crumbl’s loyal audience. Visit any successful Crumbl shop on a Friday or Saturday, and you’ll likely see a line, especially around big flavor drops or late nights. The company’s sense of fun, and the appeal of getting a box of cookies that barely fits in your hand, still works for plenty of people.
But Crumbl isn’t the only cookie game in town anymore. Local bakeries, grocery store cookie brands, and even mail-order competitors have built on Crumbl’s formula. Plus, with inflation and more budget-conscious customers, that six-dollar cookie sometimes gets skipped for a cheaper treat.
Online, the reviews are now more mixed some customers love the experience, while others complain about hit-or-miss quality or abrupt menu changes. To stay ahead, Crumbl’s new lineup of cookies, brownies, and pies isn’t just a fun experiment; it’s an effort to head off boredom, and give people more ways to come back.
What Holds the Company Together
When you look closer, Crumbl’s staying power has a lot to do with its franchise model. Most Crumbl stores are individually owned, so performance is up to local operators. Some owners are thriving by tailoring specials or local deals. Others struggle if they can’t keep up with costs or generate repeat customers.
Franchise deals helped Crumbl scale quickly, but they also mean the impact of a weak store or poor reviews can be local and sharp. Oversaturated markets a problem after the rapid post-2021 expansion don’t help, since customers in some towns got tired or stopped seeing Crumbl as special.
Crumbl’s main office stepped in with support, from revamped training to more robust marketing. Whether it’s rolling out new menu formats or tweaking store hours, they’re acting quickly to keep franchisees happy. That flexibility is something you see more in companies that plan to stick around, not those winding down.
No, Crumbl Isn’t Going Out of Business
So, if you’ve seen TikTokers guessing Crumbl will vanish overnight, now you know that’s just internet noise. The company is still open. Yes, the days of “limitless” store openings are over, and some cities have said goodbye to their franchise. But Crumbl isn’t teetering on the edge of bankruptcy, and the big picture shows adaptation, not collapse.
If you’re curious about how other food or retail side hustles grow, or what it takes to run a modern business that isn’t all smooth sailing, [this roundup at Side Business Tips] has more stories like Crumbl’s real challenges, real pivots, and sometimes real comebacks.
As for Crumbl, all signs point to a company pulling back on risky bets and working with what made it popular in the first place. That means smaller menus where it helps, better focus on the stores that make money, and a serious effort to keep longtime fans while still drawing in new faces.
You can expect the rumors to pop up again. Anytime a well-known brand changes direction, people notice. But Crumbl isn’t disappearing, and the stores that are still strong look ready to stick around. If you want a giant, sticker-shock cookie now and then, you’ll still find Crumbl boxes waiting and a company working through some growing pains, just like any big name that grew almost too fast.
For now, Crumbl’s business status is “still baking” not “going out of business.” And that calls for at least a few more cookies.
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