When Crumbl, a dessert chain specializing in cookies, was founded…
Its founders had no clue that their side hustle would become the hottest (and tastiest) unicorn startup. Here’s how they got started…
How Crumbl Cookies Got Their Start
Looking at Crumbl now, it’s easy to say that this company has everything that every startup could ever want…
But only a few people know about the humble beginnings and quick rise of their favorite dessert spot.
Jason Mcgowan and his wife’s cousin, Sawyer Hensley founded Crumbl in 2017.
TO GET THE PROJECT STARTED, MCGOWAN PERSONALLY INVESTED OVER $68,000 INTO THEIR INITIATIVE.
Since the two were still working full-time jobs, most of their meetings happened in the late evenings and whenever they could find the time. These nights were filled with brainstorming and figuring out how to create the perfect cookie by testing hundreds of recipes.
For their first location, the pair found an abandoned building that was set to be torn down. After negotiating with the building’s owners, they managed to get the rent down to $800 a month. This spot soon became the first (of many) Crumbl locations.
From late-night meetings and rent negotiations, it’s hard to believe that today, the company is better than ever.
In the United States alone, there are over 900 Crumbl locations. In 2022, the company sold over 300 million cookies.
Most importantly…
CRUMBL MADE OVER $1 BILLION IN REVENUE IN 2022
To some, this must just look like pure luck…
But in reality, this figure is due to the company’s innovative menu, as well as their ability to listen to their customers’ wants.
Crumbl’s Rotating Menu Of Cookies
Before the end of their second year in business…
Crumbl already had 15 locations.
Truth be told, the company was struggling to keep up with demand.
Customers were lining up out the door and complaining that they had waited too long to have the cookie flavor they came for sell out.
In response, the business developed a rotating menu. The new menu concept essentially has two permanent cookie flavors (milk chocolate chip and semi-sweet chocolate chunk)…
And each Sunday, four new flavors are added to the menu.
However, come the following week, the four flavors are replaced by four different flavors. And so on…
The fashion industry was what inspired the rotating menu. Essentially, a new line of clothing is launched suddenly and unexpectedly.
BUT HOW DOES THIS CONCEPT TRANSLATE TO CRUMBL COOKIES?
Having different flavors each week builds a sense of excitement and anticipation for customers. It also creates a feeling of scarcity within buyers, as it keeps people engaged and ready to come back and try new flavors.
Beyond the efficiency created by having a rotating menu…
However, Tiktok helped boost and popularize Crumbl’s imaginative cookie system.
Now, across all social platforms, the company has over 16 million followers.
With so many eyes on their cookies…
CRUMBL IS STILL REACHING OUT TO FIND OUT WHAT THEIR CUSTOMERS REALLY THINK ABOUT THEIR RECIPES.
At the beginning of 2023, the dessert brand launched an in-house app that lets users review the cookies that they buy. It also allows them to take pictures of their order, and upload it to the app.
With over 500 Crumbl franchisees, the photos allow HQ to make sure the quality of all of their locations is in tip-top shape.
What Is The Secret Ingredient For A Billion Dollar Cookie Company?
If you ask McGowan and Hensley, they’ll tell you they did the exact opposite of what you should do to start a business. After all, they created a business partnership first, and came up with their product last.
It’s obvious that Crumbl went above and beyond all expectations they first had when starting a business together.
SO WHAT’S THEIR SECRET TO SUCCESS?
According to the cofounders, it all comes from choosing to listen to the customers who love them instead of the haters.
By specifically listening to the needs of their loyal customers…
They get a better sense of where they need to improve and what they should leave alone.
Not to mention that by involving customers in the testing of their products…
Obviously, they have a new understanding of what works and what doesn’t when it comes to developing new recipes.
It just goes to show that when you’re running a business…
You need to listen to those who want to see you succeed, not the ones who want to see you fail.
Be Great,
GCTV Staff
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