How Crumbl Cookies Sells $1 Billion A Year

Crumbl, the cookie company founded by Jason McGowan and Sawyer Hemley in 2017, has built a billion-dollar empire from a side hustle that began with one location in Logan, Utah.

Jason McGowan, originally from Canada, partnered with Sawyer Hemley, his wife's cousin, to start Crumbl, despite having no prior baking experience. With an initial personal investment of $68,000 from Jason, the duo spent months perfecting their first cookie recipe, using family, friends, and even gas station patrons as their taste testers.

Crumbl’s Secret to Success

Crumbl's success lies not only in its signature chocolate chip cookie but also in its innovative business model. The company introduced a weekly rotating menu, much like the fashion industry's "drop" concept, creating buzz and scarcity that keeps customers coming back for more. This approach has been central to Crumbl's branding, along with its iconic pink box that has become synonymous with the brand.

Explosive Growth and Franchising

Starting with just a few self-funded stores, Crumbl quickly expanded, opening its first franchise location as store number three. The franchise model grew rapidly, leading to over 980 stores across the U.S. and nine international locations by 2022. Crumbl also embraced technology early on, launching an in-house app in 2018 to enhance the customer experience and gather feedback, which played a significant role in maintaining quality across its vast network.

Social Media Domination

Social media has been a game-changer for Crumbl. The hashtag #CrumblReview went viral on TikTok, contributing to the company’s massive online presence, with over 16 million followers across platforms. By engaging directly with customers and featuring user-generated content, Crumble turned cookie lovers into brand ambassadors, fueling further growth.

A Billion-Dollar Unicorn

With an impressive $1 billion in sales in 2022 and over 300 million cookies sold that year alone, Crumbl has established itself as a "unicorn" company in the food industry. Despite the challenges of rapid expansion, McGowan and Hemley have kept the brand's core mission in focus: creating meaningful moments for families through their products.

Challenges

Despite its widespread popularity, Crumbl has faced several criticisms.

Many customers have noted inconsistencies in the quality and taste of Crumbl Cookies between different locations. Some stores reportedly underbake or overbake their cookies, leading to a less-than-optimal product. Furthermore, Crumbl's cookies are generally priced higher than those at traditional bakeries or cookie shops. The high cost can be a deterrent for some customers who feel the price doesn’t always match the quality or size of the cookies, particularly at a time when many are feeling the cost of living squeeze. 

Customer experience also varies based on location and management of individual stores. Some customers have reported long wait times, errors in orders, or less-than-friendly service at certain locations, while the weekly rotating menu, while appealing to some, can be frustrating for others who miss out on their favorite flavors. The lack of a consistent menu means that popular cookies may not be available when desired. 

Despite these criticisms, Crumbl Cookies maintains a strong following and continues to expand rapidly, largely due to its unique business model and creative approach to cookie flavors.

Future Growth and Innovation

The company launched its first non-cookie item, the Cinnamon Square, in January 2024, signaling plans to diversify its dessert offerings.

Future growth will also focus on international markets, including Canada and the UK, as Crumbl continues to scale back its domestic expansion.