Crumbl Cookies opened their first location in Logan, Utah in October 2017.
Today they have 260 stores operating in 36 states, and an average unit volume of $1.27M.
5 high level thoughts on what this franchise does really well (and what other brands should be doing too) 👇
1. Product
The founders A/B tested their way to the perfect chocolate chip cookie by using different ingredients, & asking people at local gas stations "which do you like better?"
After spending thousands of $$$ on recipes, they landed on a cookie they feel is truly special.
2. Branding
Crumbl uses iconic pink packaging for every take-out + delivery order.
The boxes are designed to fit each cookie side by side, whether in a 4-pack, 6-pack, or 12-pack box.
The unique shape + signature pink coloring make it recognizable and Instagrammable.
3. (Modern) Marketing
Crumbl has 1.3M Instagram followers, 3.1M on TikTok, and 282k YouTube subscribers.
Monday episodes of "Unbox the Pink Box", where they announce that weeks rotating cookie flavors, draws tens of thousands of views.
Crumbl CRUSHES on social media.
4. Technology
Crumbl's first corporate hire was a former Senior Tech Lead at Facebook.
They have their own app, a proprietary POS system, + an internal platform for franchisees to communicate & track data (sales, ticket times, etc.)
Franchise systems should have tech hires!
5. Unit Economics
There are WAY too many franchises that offer sub-par returns based on the cost to open a location.
Crumbl however has a pretty solid investment profile:
• 2020 AUV of $1.27M
• 2019 average net profit of $284k
• Initial investment: $228k - $568k
🍪 ➡️ 💰
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TL;DR
• Product should be exceptional
• Unit economics have to make sense
• Thoughtful branding can go a long way
• Big franchises need to invest in technology
• Modern marketing is a necessity when trying to build a national brand
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