Popular Cookie Chain Begins To 'Crumbl': How CA Stores Are Affected

The fast-growing bakery chain Crumbl Cookies has hit a rough patch that could reduce the number of places California residents can get the signature oversized cookies with rotating flavors.

The company's fortunes have changed dramatically since it became a social media sensation, drawing millions of followers and customers eager to try its latest limited-time flavors.

Crumbl has closed at least 57 stores in 2026. Customer traffic has fallen sharply and one franchise operator has filed for bankruptcy, according to industry reports. An effort to boost sales by adding dirty sodas — soft drinks mixed with flavored syrups, cream and other ingredients — has also fallen short of expectations.

The company has not published a complete state-by-state list of closures. However, closures confirmed by Fast Company include locations in 10 states, including California, Connecticut, Florida, Georgia, Illinois, and Pennsylvania. An unofficial tracker also lists stores in Alabama and New Jersey.

At least four California locations have reportedly closed in 2026, according to the unofficial store closure tracker. Those include Hanford (September), Westlake Village (August), Ladera Beach (June), and Mira Mesa in San Diego (April). The tracker also lists a Rolling Hills Estates location that closed in December 2025.

Another six California locations were among closures previously confirmed in December 2025 by Fast Company, including stores in Anaheim, Dana Point, Delano, San Luis Obispo, Soquel and Victorville.

None of that means every location is struggling. The chain operates through independently owned franchises, and performance can vary substantially from one market to another.

California has 137 Crumbl stores, the most of any state, according to a September 2026 report from ScrapeHero.

Crumbl continues to operate stores throughout California, including locations in San Diego, Carlsbad, Oceanside, Los Angeles, Riverside, Sacramento, San Francisco and San Jose, according to the company's store locator.

The experience of a Kentucky couple illustrates how quickly things have changed.

In February 2024, Rick and Emily Diamond were celebrating the opening of their third Crumbl location in the Louisville area.

Their first two stores were thriving, ranking among the top 25 percent and 15 percent of Crumbl locations for sales, according to a Nation's Restaurant News profile published at the time.

Rick Diamond, a former accountant, had wanted to become his own boss after the pandemic. Emily became interested in Crumbl after visiting the company's original Utah store.

The couple liked the cookies, the company's attention to detail and its social media appeal. They were confident enough in the business to open a third store, next to a Kroger grocery store.

But the picture looks much different two years later.

Red Sheep St. Matthews LLC, the company behind their third location, filed for Chapter 7 bankruptcy protection on Oct. 1 in federal court in Kentucky, seeking to liquidate its assets.

The business reported more than $352,000 in liabilities, according to Inc. magazine.

The bankruptcy involves the St. Matthews franchise operation, not Crumbl's parent company. The couple's two other stores were not part of that filing.

Sales And Customer Traffic Plunge

Crumbl's difficulties extend beyond one franchise.

Sales in August 2026 were 70 percent lower than two years earlier, according to an internal company document cited by Restaurant Business.

Customer traffic across the chain's more than 1,000 locations was down 32 percent from a year earlier, according to data from location analytics company Placer.ai cited in an earlier Inc. report.

The downturn follows years of rapid expansion that transformed Crumbl from a single Utah bakery, founded in 2017, into a national franchise.

That growth has brought its own challenges. Restaurant franchise experts say expanding too quickly can leave operators competing for customers in markets that cannot support so many locations.

Dirty Sodas Fail To Deliver

Crumbl's new drink lineup failed to boost sales as expected.

In 2025, CEO Jason McGowan projected that dirty sodas would increase sales by 20 percent and boost average annual store revenue from $1.1 million to $2 million.

The beverages were meant to drive visits outside of weekly cookie releases.

But the initiative failed to produce the anticipated sales increase, according to Inc.

McGowan has acknowledged the company's problems and accepted responsibility for its performance.