Over the past few weeks, Crumbl Cookies has been the subject of growing speculation around store closures and whether the brand expanded too fast.

That narrative gained traction after a Bloomberg feature questioned the sustainability of Crumbl’s hyper-scaling strategy, raising doubts about how well the business model holds up after years of explosive growth.

Those questions are understandable when looking at how Crumbl grew. The brand’s expansion was fueled by social media virality and constant novelty, with weekly rotating flavors driving urgency and repeat traffic.

Crumbl’s unit growth helps explain why this debate surfaced.

From 2018 to 2023, the system expanded at an extraordinary pace, growing from 15 locations to about 700. Yet growth slowed to 1,058 franchised units by year end 2024, while store closures seemed to accelerate.

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In addition to unit growth, 2023 financial performance showed average unit volumes and profits declines, amplifying doubts over the franchise business model. Some pointed to the gap between average and median net profits, arguing that headline averages masked a significant number of underperforming stores.

Now looking at the most recent FDD, 2024 numbers show a clear recovery from 2023: revenue per unit increased ($1.3M), and operating margins improved from ~10% to ~17%.

Just as important, the 2024 results are based on a much broader data set: 858 franchised units were included in the 2024 results (~81% of the total 1,058 stores opened year end 2024), compared with only 571 units out of the 968 units opened at the end of the 2023 fiscal year.

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To conclude, whilst there are questions over the sustainability of its business model built on hyperscaling and social media hype, Crumbl does not seem to be a model in decline either.

Next year's FDD, focusing on 2025 fiscal year results, will give us a glimpse of whether rumors are exaggerated, and how resilient the model really is.

In the end, for QSR franchisees Crumbl is a great example of how (long term) returns now depend far more on location quality, market saturation, rent discipline, and execution than on hype alone.

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Smalls Sliders® Signs Multi-Unit Agreement in Upstate South Carolina

Smalls Sliders® has signed a multi-unit development agreement to open five new locations across Upstate South Carolina.

The deal will bring the brand’s modular “Can” restaurants to markets including Greenville, Spartanburg, Anderson, and Clemson.

Led by an experienced local franchise group, the agreement accelerates Smalls Sliders’ expansion across the Southeast.

The move reflects the brand’s strategy of partnering with multi-unit operators to rapidly scale in targeted regions.

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Rock N’ Roll Sushi Opens in Oxford, AL
Rock N’ Roll Sushi has opened a new location in Oxford, Alabama, expanding the brand’s presence in its home state and entering a new local market.

The opening marks the concept’s 21st location in Alabama, reinforcing its strategy of building density across core Southeastern markets.

The Oxford restaurant brings the brand’s music-themed sushi experience to a high-traffic retail area, supporting continued regional growth.

This expansion highlights sustained demand for differentiated casual-dining concepts in smaller but fast-growing communities.

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