SALE PENDING: 3 Crumbl Cookie Stores in New York City (Plus Franchise Rights for 3 More Stores)
LIST PRICE: $5,500,000
- Average Monthly Revenue: $662,143
- Average Monthly Net Profit: $138,832
- Profit Margin: Gross 46% / Net 21%
- Monthly Multiplier: 36x
- Business Created: Oct 2022
- Owner Hours Required: 10-12 hours per week
Up for sale is a 6-asset package that includes 3 Crumbl cookie stores in New York City (Upper East Side, Upper West Side and White Plains) + the franchise rights to build 3 additional stores in Yonkers, the Bronx and Queens.
The Upper East Side store is located at 1195 3rd Avenue, New York, NY 10021, which is in a densely populated residential area with 8 schools within 6 blocks. (It's also located right next to a Target, which gets a lot of foot traffic.)
Upper East Side was the first of the 3 stores to open, having had its grand opening in late October 2022. Over the past 11 months, it has averaged about $288k in revenue and $73k in net profit per month. Store build-out costs for the Upper East Side store (which is approximately 1,100 square feet) totaled about $430k.
The nearest Crumbl location to this store is the seller's Upper West Side store (also included in this package). There are no other Crumbl stores on the east side of Central Park, and there are no other Crumbl locations slated to be opened Manhattan or to the north or south (Midtown or Harlem).
The Upper West Side store opened a few months later in late January 2023. It is located on the corner of a busy crossroads at 301 Columbus Ave, New York, NY 10023 just one block from Central Park. (It is the only Crumbl location immediately west of Central Park.) With a host of popular stores nearby (including Lululemon, Madewell, AllBirds and more), Columbus Ave gets a ton of foot traffic.
Over its 8 months of operations, the Upper West Side store has averaged $148k in revenue and $22k in net profit per month. This store's build-out costs totaled around $450k (1,400 square feet on the main floor + an additional 1,400 square feet in the basement).
Important note: The Upper West Side store has been underperforming because of the fact that the entire building the store is located in has been in scaffolding since it opened in January 2023. Once the scaffolding is removed (likely within the next month or two), revenues and profits will likely be much higher than they've been to this point.
The White Plains store is located at 377 N Central Ave, Hartsdale, NY 10530, a "golden" pad site with excellent road visibility next to Shake Shack (with a Barnes & Noble opening in the center soon). Co-tenancy is very strong with a good mix of food and retail.
The White Plains store opened in March 2023 and has averaged $226k in revenue and $44k in net profit per month over the 6-month period March - August 2023. Total build-out costs for this 1,900-square-foot store were approximately $435k. The closest Crumbl store to this location is the seller's Upper West Side store, which is 30-45 minutes away.
This package deal also includes the Crumbl franchise rights to build 3 more stores in the area. Most likely, these other 3 stores will be in the Bronx, Yonkers and Queens (none of which have a Crumbl store in them).
The seller is in the process of signing a lease for the Bronx location in Bay Plaza near Pelham Bay Park. According to Placer.ai, Bay Plaza is the #3 most visited center in the United States, averaging 15.5 million visitors per year. The store will be right next to a Chick-Fil-A which will not have a drive-thru, so the foot traffic will be high.
As you can see in the Crumbl store map below, this portfolio of 6 stores/areas will give the new owner complete control of the large, densely-populated area within the dashed lines.
The owner is selling these stores because virtually all of his family lives in Utah and he and his wife would like to move back closer to home. (They moved out to New York a couple years ago to open these Crumbl stores but would now like to return home to be closer to family.)
Assets Included in the Sale
Please note that the P&Ls above include all salaries and wages, including those for a manager at each store ($75-85k/year) as well as a portion of the regional manager for the 3 stores ($90k/year).
The current owner (Seth) will of course give the eventual buyer the opportunity to conduct extensive due diligence, including an in-depth review of the P&L statements, Balance Sheets and other reports. The seller will also provide access to bank statements, Crumbl sales reports, payroll reports and tax filings, and all other necessary reports to verify and confirm all of the figures shown in the P&Ls above.
Marketing & Traffic
Crumbl as a corporation has been absolutely killing it. Here is an excerpt from Crumbl's Franchising page on their corporate website:
"Since opening its doors five years ago, Crumbl has expanded to over 800+ bakeries in 50 states, making it the fastest-growing cookie company in the U.S. In 2023, we expanded internationally and have opened stores in Canada. No matter how big the brand becomes, Crumbl is a family-owned business and is proud to contribute to the livelihoods of its thousands of local franchise partners, managers and bakers. With each new bakery, Crumbl will strive harder than ever to fulfill its mission of bringing friends and family together over a box of the best cookies in the world."
Crumbl is widely known for their huge tasty cookies, weekly rotating menu, open-concept kitchens, large pink cookie boxes and their top-rated app (providing multiple ways to order cookies, including delivery, pickup, catering and shipping). The state of New York (along with the entire United States) is already "sold out", meaning there are no additional franchise opportunities. The only way to own a Crumbl franchise in New York (or in any other state, for that matter) is to purchase an existing store, as you have the opportunity to do by purchasing this 3-store, 3-area package.
Crumbl considers itself a "cookie tech company", priding itself not only on their gourmet cookies but also on using technology (including the Crumbl Cookies app) to gather consumer data, syndicate information and streamline the ordering process for customers. The Crumbl Cookies app has a 4.9-star rating with about 2.8 million reviews in the Apple App Store. (The Android app has a 4.8-star rating with around 431k reviews.) Unlike most food & drink franchises that struggle mightily to get their customers to download and use their app, Crumbl has been wildly successful in that endeavor.
The rotating weekly menu plays a key role in generating excitement about new (and returning) recipes, which continually bring past customers back in to the store (or purchasing cookies online for delivery).
All Crumbl operators pay a 7%-of-revenue royalty fee (together with a 3% national advertising fee, both of which are included in the P&Ls above under 'General & Administrative Expenses'). This fee entitles operators to use Crumbl's brand name and intellectual property, technology and software (including the app), website, recipes, Crumbl-branded boxes and specialty ingredients, and corporate direction, training and support.
As noted above, Crumbl store operators pay a 3%-of-revenue national marketing fee, which the Crumbl corporation uses for national marketing campaigns. These general advertising campaigns strengthen the brand image and increase brand awareness, benefiting each individual store. This cost (along with the 7%-of-revenue franchise fee) is included in the P&Ls above in 'General & Administrative Expenses'.
The P&Ls above also include additional advertising expenses the owner has incurred to do additional local marketing (which has been quite minimal).
As discussed above, the Crumbl app is incredibly beneficial to Crumbl store operators. Notifications about the new cookies available each week are automatically sent to every customer with the app, generating excitement and, more importantly, orders.
You can make an offer for this business here. We will immediately present your offer to the sellers. If they accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted.
Once your offer is accepted, a 30-day due diligence period will begin (during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason). During this 30-day due diligence period, we'll work closely with you and the seller to help you complete due diligence.
Once the Asset Purchase Agreement (APA) is signed and the sale is completed, we will update this page to let other interested parties know that the sale has been finalized and remove this listing from the Store Coach Marketplace.
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