What's Up With Cookies?

Many may remember the random boom of cupcake storefronts and frozen yogurt shops around 2010. These stores became the “place to be” for people - and the brands to capture for retail brokers. It's still pretty easy to find a Yogurtland or Menchie's around town (or in REGIS Online!) but it seems the next “big thing” is … cookies?

Crumbl's Commercial Real Estate Creation

Despite its huge impact on the industry, Crumbl was founded in 2017 by cousins Jason and Sawyer in Logan, Utah. After opening the first location in a standalone building and growing through social media, Crumbl has been on an upwards trajectory - and doesn't show signs of stopping. When we first started tracking Crumbl in August of 2022, they had 555 locations nationwide. As of April 2023, Crumbl has just under 800 locations. (In the time it took to research and write this article, their locations went from 694 locations to 778 locations in the merchant database!)

This growth rate has created positive and negative conversations about the future of Crumbl. Many think this is just another repeat of the frozen yogurt craze from way back when. Others think they still have more to grow before reaching a stopping point. All three major frozen yogurt brands, like Menchie's, Yogurtland, and Pinkberry, have been slowly closing locations since approximately 2018, and especially since 2020. If Crumbl is following in the footsteps of this retail category, we still have a long way to go before we see a decline in numbers, if we ever do.

Crumbl's Retail Competitors

Crumbl is not the first cookie retailer, but they are the first to capitalize on the power of social media marketing. Way back in the day, it wasn't uncommon to see a Mrs. Fields or a Nestle toll House Cafe in a mall food court - back when that was the place to be” for retailers. Today, Mrs. Fields and Nestle have fallen behind in the retail category, but other competitors are clearly running up against Crumbl's power. Brands like Insomnia Cookies, Dirty Dough, and Crave are taking up retail space - and consumer's hearts - all by themselves. While these retailers are still too small to track in REGIS Online, we can't wait to see how they grow and what they can accomplish in this category.

Crumbl's growth trajectory can be attributed to their powerful marketing strategy, franchise system, and of course, good products. They have been able to build in the obvious markets, but Crumbl is also in states like Hawaii and Alaska, markets that are notoriously hard to break into. Typically, it costs about $50,000 just to start the franchise, which Crumbl has strict real estate requirements on. Stores are typically 1,400 to 2,000 square feet, with and must be leased for between $50,000 - $250,000 per annum. Initial estimated costs range from $350,000 to $700,000 after all the training fees and opening costs. While it is not an easy entry, these locations keep popping up, and making money, so we expect our merchant location number to just keep growing. •

Last Modified Apr 28, 2023