As its franchise system records its weakest sales in memory and 65 net locations have closed since April, Crumbl is rolling out a $1.99 bundle pairing a zero-sugar Dirty Soda with a Chocolate Chip Thin cookie. The move is the cookie chain’s most visible public acknowledgment yet that its rapid expansion model is under serious strain, at a time when franchisee profitability has collapsed and store closures are accelerating.
Founded in 2017 by cousins Jason McGowan and Sawyer Hemsley in Logan, Utah, Crumbl grew into the largest franchise cookie chain in the United States in under six years, reaching more than 1,100 locations. The franchise chain sold a minority stake to private equity firm TSG Consumer Partners in 2025 at a reported valuation of $2 billion.
Since that transaction, franchisee performance has deteriorated sharply. According to internal company documents reviewed by Restaurant Business, system-wide sales in August 2026 fell 70% compared with August 2024, before partially recovering to a 50% decline in September. Median per-store monthly profit for September stood at $1,832, the equivalent of roughly $22,000 on an annualized basis.
A $1.99 Combo as the Brand’s First Tactical Response to Declining Traffic
Starting on Friday, October 16, Crumbl began offering the bundle at participating locations: a 24-ounce zero-sugar Dirty Soda paired with a large Chocolate Chip Thin cookie, the combination totaling 170 calories.
The brand has emphasized the calorie count in its promotional materials, responding to earlier criticism of its Dirty Soda lineup after one item, the “Crazy Cousins” drink, was found to contain 186 grams of sugar. CEO Jason McGowan announced the offer in a message to franchisees reviewed by Restaurant Business, describing it as a reason for new customers to visit and an additional sales occasion for existing ones.
A System Under Pressure: Closures, Bankruptcies, and Layoffs
Crumbl entered 2026 with 1,101 locations. Between April 30 and early October, the brand opened 15 new restaurants while closing 80, resulting in 65 net closures and reducing the system to approximately 1,036 units. A six-store franchisee in New England filed for bankruptcy protection last month, and at least one two-store operator recently solicited buyers for its locations at a price described as substantially discounted.
Corporate layoffs during August and September affected more than 120 employees, according to multiple sources cited by Restaurant Business. The brand ended 2025 with only $6 million in cash on hand, per franchise documents reviewed by the publication.
Key figures: Crumbl system, October 2026
- 1,101 locations at the start of 2026; approximately 1,036 today
- 65 net closures since April 30 (80 closed, 15 opened)
- Sales down 70% in August vs. August 2024; down 50% in September
- Median monthly per-store profit in September: $1,832 (approx. $22,000/year)
- Cash reserves at end of 2025: $6 million
An Offer That 300 Locations Cannot Participate In
The $1.99 value promotion exposes a structural divide inside the Crumbl franchise system. To participate in the Dirty Soda program, operators were required to invest up to $50,000 in beverage equipment. Approximately 300 of the chain’s remaining locations, roughly 29% of the system, have not completed those installations.
The company previously threatened to declare non-compliant franchisees in default, though that position has not been publicly enforced on a broad basis. Crumbl’s franchise agreement gives operators limited flexibility on pricing, a provision that has generated friction as franchisees look for ways to reduce costs and attract customers in a period of sustained traffic decline.
What the Company Has Said About the Path Ahead
On October 9, Jason McGowan published a statement on LinkedIn in which he acknowledged the brand’s difficulties and accepted personal responsibility for the timing of the brand’s response. “The restaurant industry is facing real headwinds right now, and Crumbl is no exception. I could point to them, but that doesn’t solve anything. As a leader, I should have anticipated them sooner and adjusted our course. T
hat is on me,” he wrote. In a statement provided to Restaurant Business following this report’s publication, Crumbl confirmed that the Dirty Soda program is live in approximately 800 stores and said the company “is continuing to build out its marketing efforts, including various initiatives and value bundles.” The company has not responded to multiple detailed questions about the financial data cited in this article.
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