Utah-based Crumbl closes dozens of locations as inflationary pressure takes a bite out of sales

SALT LAKE CITY — Utah-based Crumbl is closing dozens of stores and laying off employees at the company's headquarters after a bad batch of sales reports.

The cookie company's sales in August were 70% lower this year than two years ago, according to Restaurant Business. Fifty-seven locations are shutting down as a result. There are also reported layoffs at Crumbl's headquarters in Lindon.

Zions Bank senior economist Robert Spendlove believes Crumbl's downturn may be because people are cutting back on spending and buying fewer items that they see as a luxury.

"People just don't feel great about the economy," Spendlove said. "And a big reason for that is they're facing constant pressure of rising prices and higher inflation."

One of the problems is that Crumbl has recently integrated dirty sodas, which ended up being a costly endeavor. Spendlove said in this type of economy, companies should focus on core competencies instead of trying out new ideas.

"Once consumers start to pull back, those less-tested or untested ideas can be kind of exposed," Spendlove said.

Crumbl CEO Jason McGowan reportedly told franchise owners that he takes responsibility for the 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 about 1,000 locations across the country.

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