Core Viewpoint - Crumbl Cookies has experienced a decline in sales and social media engagement after rapid expansion, raising concerns about oversaturation and the sustainability of its marketing strategy [4][7][17]. Sales and Financial Performance - Crumbl closed 7 stores in 2023, marking the first permanent closures in its history, including locations in California, Florida, Georgia, and Utah [7]. - Average store revenue dropped from approximately $1.84 million in 2022 to about $1.16 million in 2023, with a slight rebound to around $1.35 million in 2024 [17]. - Median net profit across Crumbl locations declined by around 32%, indicating uneven profitability, although the 2024 Franchise Disclosure Document (FDD) shows a 95% year-over-year gain compared to the previous year [17]. Marketing and Brand Strategy - The initial success of Crumbl's marketing strategy relied heavily on social media virality, but this approach has proven to be unsustainable as consumer interest wanes [2][4]. - The company expanded rapidly in 2022 to meet demand generated by social media, but this led to a dilution of brand exclusivity and a decrease in social media engagement [4][5]. - Crumbl's marketing strategy has shifted towards maintaining profitability rather than focusing solely on unit count, as evidenced by a 17% increase in sales per restaurant after slowing expansion [17]. Consumer Behavior and Market Trends - The rise in menu item prices across the restaurant industry, averaging a 39% increase over five years, has affected consumer spending habits, making luxury items like cookies less justifiable for regular purchases [11][12]. - Crumbl faces backlash as it transitions from being a trendy product to a more common offering, with consumer expectations not aligning with the premium pricing [13][14]. Future Outlook - Despite challenges, Crumbl maintains over 1,000 locations in the U.S., but experts suggest that this may be too many given the current market demand [14]. - The company is undergoing restructuring and has plans for future growth, as indicated by the CEO's statements about moving offices and expanding marketing efforts [9][17].