Crumbl Faces 'Fading Novelty' and GLP-1 Snack Shifts as Sales Fall and Store Closures Mount in 2026

Crumbl has shut at least 57 stores across the United States so far in 2026 as sales fall and franchisees come under strain, according to a comparison of the cookie chain's current store locator with archived versions.

For context, an internal Crumbl document obtained by Restaurant Business shows August sales were 70 per cent lower than two years earlier. Separately, Placer.ai data shows foot traffic at more than 1,000 Crumbl locations fell 32 per cent year over year.

Crumbl's own response was not included in the material reviewed for this report.

Why Crumbl's Cookie Sales Are Under Pressure

Economists point first to the household budget. 'People just don't feel great about the economy,' Zions Bank Senior Economist Robert Spendlove told KSL. 'And a big reason for that is they're facing constant pressure of rising prices and higher inflation.'

A $5 cookie is an easy thing to skip when grocery bills climb. Crumbl's oversized treats are an indulgence rather than a staple, which leaves them exposed when shoppers trim discretionary spending.

Then there is the GLP-1 factor. Millions of Americans are taking the appetite-curbing drugs, and a PwC survey found 61 per cent of current users are buying fewer sweet treats. A further 56 per cent said the same about salty snacks. So is it the economy, the drugs, or simply a fad running out of road?

RTM Nexus CEO Dominick Miserandino leans towards the last. 'The cookie business has enough problems with fading novelty. Now you've got people on GLP-1 drugs who don't even want the cookie. That's a tough combination when your entire business depends on someone deciding they deserve a treat,' he said.

Kentucky Franchisee Collapse Highlights Local Strain

The strain has now reached franchisee level. A Crumbl store in St. Matthews, Kentucky, has closed, and its owners have filed for Chapter 7 bankruptcy, which means seeking to liquidate their assets.

Franchisee Red Sheep St. Matthews LLC, owned by Richard and Emily Diamond, filed its petition in the US Bankruptcy Court for the Western District of Kentucky on 1 October, according to court records. Louisville Business First reported liabilities of more than $352,000.

Dessert Chains Have Struggled Before

Sprinkles Cupcakes shut all its remaining US locations on 31 December 2025, including its cupcake vending machines. The company had roughly 20 shops and more than 30 ATMs, and the Associated Press reported that no official reason was given.

Chip City Cookies closed all its remaining locations in October 2026. The company cited declining sales, changing consumer preferences and insufficient funding, QSR Magazine reported.

Gigi's Cupcakes' franchisor filed for Chapter 11 bankruptcy in January 2025, citing financial difficulties, though some independently operated franchises stayed open. Crumbs Bake Shop closed its remaining 58 stores in 2014 after a steep sales slump, the Los Angeles Times reported.

Craveworthy Brands CEO Gregg Majewski, whose company owns cookie dough chain Dirty Dough, says variety is the answer. 'We want to maintain sales so we don't see those drops by having an assortment of items for guests,' he told Restaurant Dive.

GLP-1 Drugs Are Not Hitting Every Rival Equally

The picture is more mixed than the headline numbers suggest. Krispy Kreme CEO Joshua Charlesworth told Restaurant Dive, 'We have seen no obvious impact from GLP-1s in our data.' He said most doughnuts are bought by the dozen for sharing, and 40 per cent are gifts for somebody else.

Research firm Circana found GLP-1 users cut the average number of items ordered per trip by just 1 per cent. They tend to order more main dishes and fewer sides, snacks and breads. Some 63 per cent are actively seeking more vegetables, and 55 per cent more fruit.

Cutting back on the sugary stuff, in other words, is not the same as staying home. In Circana's words, 'the biggest change to restaurants won't be that consumers stop going out to eat, it will be how they go out to eat and what they order.'