Crumbl Cookies began as a "fun side hustle" and now generates $1 billion annually, making it "something that anyone can do."
In 2017, two inexperienced cousins launched a cookie business together.
Co-founders Jason McGowan and Sawyer Hemsley revealed that Crumbl Cookies has over 980 stores across the U.S., surpassing $1 billion in sales across all franchises and selling more than 300 million cookies in 2022.
McGowan, 43, who invested $68,000 of his own money to start the business, never thought that it would achieve over $1 billion in sales. The company has not yet shared its 2023 sales figures, as they are still being audited.
In 2017, when Crumbl first opened its store in Logan, Utah, Hemsley was still studying marketing at Utah State University.
McGowan stated to CNBC Make It that they initially viewed their side hustle as merely a source of amusement.
Crumbl's signature chocolate-chip cookies were the basis for McGowan and Hemsley's first location, which they built after meticulously testing various cookie recipes and enlisting the help of friends, family, and strangers to taste-test them.
The co-founders' backgrounds in tech and marketing enabled them to build a massive following on social media from the start, as McGowan explains. They draw inspiration from the fashion industry by releasing new, limited-edition cookie flavors in weekly "drops" on TikTok.
Crumbl cookies create excitement, scarcity, and hype, as they can only be enjoyed for a week, with individual cookies costing between $4 and $5, and prices decreasing for packs of four, six, or twelve, according to the company's website.
Crumbl's social media presence is substantial, with over 16 million followers across all platforms. The platform where Crumbl has gained the most traction is TikTok, with over 7 million followers and a viral hashtag, #TasteWeekly. TikTok users frequently post reviews of Crumbl's cookie flavor drops, both positive and negative.
Crumbl has experienced a surge in franchising interest due to its hype, resulting in the opening of over 600 new stores between 2022 and 2023. However, McGowan predicts that the pace of expansion will slow down in the future, despite Crumbl's plans to expand internationally, including in the U.K.
Crumbl has faced copycat competition, as evidenced by two 2022 trademark infringement lawsuits. These lawsuits eventually resulted in settlements with undisclosed terms. A spokesperson for Crumbl stated, "As any company would, we chose to protect our brand."
Crumbl's success can be easily replicated, according to McGowan's biggest lesson so far.
"As I age and grow my business, I realize that everything we do can be done by anyone, regardless of whether they have a mixer or a cookie recipe yet. All you need to do is start," he says.
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