SALT LAKE CITY — Utah-based Crumbl is closing dozens of stores and laying off employees at company headquarters after a series of poor sales reports.
The cookie company’s sales in August were 70% lower this year than two years ago, according to Restaurant Business. As a result, fifty-seven sites are closing their doors. Redundancies have also been reported at Crumbl’s Lindon headquarters.
Zions Bank senior economist Robert Spendlove believes Crumbl’s economic slowdown could be because people are cutting back on spending and buying fewer items they consider luxuries.
“People just don’t feel good about the economy,” Spendlove said. “And one of the main reasons for that is that they face constant pressure from higher prices and higher inflation.”
One problem is that Crumbl recently brought in dirty sodas, which has proven to be a costly endeavor. Spendlove said that in this type of economy, businesses should focus on their core competencies rather than trying new ideas.
“Once consumers start to opt out, these less tested or untested ideas can be sort of exposed,” Spendlove said.
Crumbl CEO Jason McGowan reportedly told franchise owners he took responsibility for the economic downturn.
“I’m the CEO and the buck stops with me. It’s my fault where we are today,” McGowan said, according to Restaurant Business.
Despite the closures, Crumbl still has around 1,000 locations across the country.
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