Forbes - How Crumbl Devoured America
Crumble Cookies, founded by Jason Macwan and Sawyer Hemley in 2017, has grown from a single store in Logan, Utah, to over 1,000 franchised locations across the U.S. and Canada. The company is known for its large, high-calorie cookies and has leveraged viral marketing, particularly on TikTok, to build a strong brand presence. Despite starting with no baking experience, the founders capitalized on the bakery-driven culture in Utah and used social media to promote their product. Crumble's rapid expansion led to $122 million in franchise royalties and over $1 billion in systemwide sales in 2023. However, analysts are skeptical about the company's $2 billion valuation, citing a decline in average same-store sales from $1.8 million in 2022 to $1.2 million in 2023. The founders initially self-funded the business, with Macwan investing $68,000 of his savings. The company's success is attributed to its viral marketing strategy and the founders' ability to adapt and learn quickly, despite their lack of initial expertise in baking.
Key Points:
- Crumble Cookies expanded to over 1,000 locations in the U.S. and Canada since its founding in 2017.
- The company generated $122 million in franchise royalties and over $1 billion in systemwide sales in 2023.
- Viral marketing, especially on TikTok, played a crucial role in Crumble's brand growth, surpassing major brands like Starbucks in social media presence.
- Analysts are skeptical of Crumble's $2 billion valuation due to declining same-store sales.
- Founders Jason Macwan and Sawyer Hemley started with no baking experience, leveraging Utah's bakery culture and social media to succeed.
Details:
1. 🍪 Crumble's Sweet Success: A Franchise Phenomenon
1.1. Crumble's Expansion and Popularity
1.2. Founders' Strategy and Impact
2. 📱 Social Media: The Secret Ingredient to Crumble's Popularity
- Crumble earned $122 million from franchise royalties, and its systemwide sales exceeded $1 billion, showcasing its financial success.
- The company's viral marketing strategy on social media platforms, particularly TikTok, played a crucial role in its brand recognition and financial achievements.
- Crumble boasts an impressive 9.8 million TikTok followers, outpacing major competitors like Starbucks, Dunkin', and Krispy Kreme combined, which highlights its social media dominance.
- Over 1007 million TikTok videos mention Crumble, with several videos attaining hundreds of thousands of views, indicating a strong engagement and reach.
- Specific social media tactics included creating visually appealing content of giant cookies, leveraging user-generated content, and consistent interaction with followers to maintain engagement.
3. 💰 Crumble's Financial Highs and Valuation Dilemmas
3.1. Financial Performance Metrics
3.2. Valuation Analysis and Industry Comparison
4. 👨🍳 From Novices to Cookie Moguls: The Founders' Tale
- Macwan invested $68,000 of his savings to start the company, which has been self-funded since.
- Macwan owns more than 50% of the company, Hemley owns most of the rest, and one other person has a few shares.
- Macwan, who dropped out of school after the 8th grade, taught himself web development while living on friends' floors.
- The founders decided to create a single product: a chocolate chip cookie, leveraging Utah's bakery-driven culture.
- They tested recipes in Hemley's parents' kitchen, learning from YouTube tutorials and local bakers.
- The flagship store was a vacant crepe shop in Logan that was set to be demolished in 6 months.
- Their initial recipes often failed, but in September 2017, they developed their signature giant milk chocolate chip cookie.
- Hemley promoted the first store on social media, emphasizing a social media-friendly pink theme.
- Despite initial failures, the founders persisted by experimenting with various recipes, leveraging online resources, and receiving feedback from local bakers, eventually leading to their successful signature cookie.
5. 📰 Wrapping Up and Further Insights from Forbes
- Simone Melvin's article on Forbes.com provides in-depth insights on the topic discussed.
- The article highlights key trends and strategic recommendations in the industry.
- Kieran Meadows from Forbes emphasizes the importance of reading the full article to gain comprehensive understanding.
- Forbes encourages readers to explore additional resources for a broader perspective.
- The article includes data-driven analysis and case studies to support its insights.