The rapid rise of Crumbl Cookies is hitting a significant bump in the road as the Utah-based giant begins shuttering dozens of its storefronts. In a move reflecting a sharp decline in consumer demand, fifty seven locations have been closed following a series of disappointing sales reports. The fallout extends beyond the bakeries themselves, with layoffs also impacting staff at the company’s corporate headquarters in Lindon.

Financial data paints a stark picture of the current slump, showing that August sales plummeted by seventy percent compared to levels seen just two years prior. Economists suggest this trend is part of a broader shift in how Americans spend their money during periods of high inflation. Robert Spendlove, a senior economist at Zions Bank, notes that when prices rise across the board, shoppers tend to abandon luxury treats first as they tighten their household budgets.

Industry analysts point toward some strategic missteps as contributing factors to the downfall. Specifically, Crumbl’s recent push into the trendy world of dirty sodas proved to be an expensive venture that failed to pay off. According to Spendlove, attempting to diversify too quickly during an economic downturn often exposes vulnerabilities, suggesting that companies are better off sticking to what they know best rather than gambling on unproven concepts.

CEO Jason McGowan has stepped forward to take ownership of the situation, telling franchise owners that he accepts full responsibility for the company’s current trajectory. While these closures mark a painful contraction for the brand and its partners, Crumbl remains a massive presence in the dessert market with roughly one thousand locations still operating nationwide.