SALT LAKE CITY – Utah-based Crumbl is closing dozens of stores and laying off employees at the company’s headquarters after a poor batch of sales reports. The cookie company’s August sales were 70% lower this year than two years ago, according to Restaurant Business. As a result, fifty-seven locations are closing. Layoffs are also reported at Crumbl’s Lindon headquarters. Zions Bank Chief Economist Robert Spendlove believes Crumbl’s slowdown may 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 a big reason is that they face constant pressure from rising prices and inflation.” One of the problems is that Crumbl has recently integrated dirty sodas, which ended up being an expensive undertaking. Spendlove said that in this type of economy, companies should focus on core competencies rather than trying new ideas. “Once consumers start to push back, those less proven or untested ideas can become exposed,” Spendlove said. Jason McGowan, CEO of Crumbl, reportedly told franchise owners that he takes responsibility for the crisis. “I’m the CEO and the responsibility falls on me. It’s my fault where we are today,” McGowan said, according to Restaurant Business. Despite the closures, Crumbl still has about 1,000 locations nationwide.
