Crumbl Case Study_V.2

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00:00Crumble is a dessert company that began in Logan, Utah in 2017 and it's rapidly

00:08grown into a viral sensation. Known for its oversized treats, Crumble's success is

00:14fundamentally tied to its digital strategy. Social media was their entire

00:19strategy from the very beginning, focusing on visually appealing products

00:22and branding. This digital first model fueled their explosive growth to more

00:27than 1,000 stores across the U.S. and Canada, netting $158 million in revenue

00:33from franchise royalties by leveraging the power of social media virality.

00:37What we know about Gen Z and generations around them is that they're a snacking

00:42generation and so there's a very something very relevant about Crumble with

00:47the way that this generation eats. This is a very much you know the the treat

00:50yourself time right and so there is this sense of like what is the new thing I'm

00:55going to try. And so they have tapped into that very very well and built into

01:00their business model continuous ways to surprise people and delight people.

01:07So what we're seeing is a huge rise in snacking culture and so people are eating

01:12a lot more in between meals but Crumble cookies obviously a lot more than just a

01:15snack they're kind of almost like a mini meal it's the sort of event eating and

01:19consumers are seeking pleasure they're seeking escapism and really that's what the

01:24Crumble cookie delivers is an excess of all of those things.

01:29Crumble has an impressive 10.4 million followers on TikTok. That's more than

01:33Starbucks, Dunkin and Krispy Kreme combined. In total more than 107 million

01:39TikTok videos mention Crumble, several of which have clocked up hundreds of

01:42thousands of views.

01:43Crumble's marketing success story starts with their product. These cookies are large,

01:51visually striking and unapologetically decadent setting them apart from more

01:56subtle offerings. But their success goes beyond just the taste. The entire

02:01experience of discovering and enjoying a Crumble cookie is a crucial ingredient in

02:06their winning formula.

02:15They have also done a really good job of leveraging their brand assets and tangible things like

02:20the pink box. The cookie is very recognizable. Cookies in general are very replicable but the

02:28Crumble cookie is very obvious online. It's a very distinctive look and very distinctive color and size.

02:33And so it's, it's very, you know, part of the experience is, is seeing that very recognizable food item.

02:41Also the fact that they're really photogenic. So I could probably even take a good photo of them.

02:46So they take their photos, you know, sort of shot from above. It looks really Moorish. But actually

02:50consumers can also take their photos and, and almost feel like they're the content creators. And what is

02:57particularly interesting, I think about this kind of food is that it's, they are creating food,

03:01but they're all, but Crumble are also content creators. You know, they're creating these videos,

03:05they're creating the flavor ideas, they're creating the drop. There's very much a sense that you're

03:10consuming the content as much as you're consuming the cookie.

03:17Co-founder and CEO Jason McGowan even told us much of Crumble's focus on branding and storytelling

03:23was intentional from the beginning.

03:28Our very first marketing channel was social media. You know, right when we got off the gate,

03:33even when we were opening our very first store in the, in Logan, Utah, we invested in telling people

03:40the story and have them walking behind the scenes of our store getting built out. And, you know, the

03:45struggles that we faced as entrepreneurs and, and how we could grow up that store. And so it hasn't

03:51been something that's been tacked on or a side strategy or something that we put a little dollars

03:55behind. It's been really our entire strategy, which is to invest in social media and have our

04:01customers come along for the journey. Crumble has benefited from collaborations with high profile brands,

04:10such as the Kardashians, Dove and Olivia Rodrigo. According to McGowan, this cross promotion has proven

04:18highly effective with many individuals discovering crumble through these collaborations.

04:26Crumble gets to leverage, you know, their knowledge of, and their access to a very desirable audience.

04:32And then at the same time, I think for, for a snack brand to partner with brands outside of the food

04:39space really gives additional cultural relevance and allows the, allows the brand to, you know, go beyond

04:45just that snack occasion in their marketing and really thinking about, you know, what those other brands

04:51bring to the table. But it goes back to that cultural relevance. And that's what's so important for,

04:55you know, for Crumble to maintain is, is, you know, how popular they continue to be.

05:04Crumble has also found great success using the power of user generated content, or UGC.

05:10The extensive mukbang and ASMR content dedicated to their brand exemplifies a rare form of social

05:16media engagement, relinquishing brand control to foster organic conversation.

05:24Consumers love to express their preferences. And so they've created this ecosystem that is through their app,

05:34but also through their social media, where people share what they think every week. And there's new,

05:42new things to comment on. And that helps influencers have content. And so there's this really kind of

05:47self reinforcing ecosystem.

05:53I think it definitely has a success in the sense that you're getting those two different kind of markets and two different

05:59audiences coming together. The fact that soap and cookies worked really well, I think, just goes to

06:04show that anything is possible in the internet. It's a strange place. And sometimes the weirder, the better.

06:19Crumble's success stems from selling more than just cookies. They offer an experience rooted in

06:24anticipation and scarcity. Each Sunday, the one day Crumble is closed. They announce a limited flavor

06:30for that week that will be available Monday. That keeps people glued to Crumble's social media and

06:36creates a new reason for even the biggest cookie fan to keep going back for more.

06:43The fact that they are really good at introducing new flavors and variety, everybody wants to try new

06:49things. And that's a really big part of what keeps people coming back for more. But even more than

06:55that, there's kind of core psychological concepts involved here in terms of scarcity and creating

07:03urgency. There's the sense that if I don't go this week, I'm going to miss out on something. That FOMO,

07:11that's really key to what keeps consumers coming back. And of course, we know from business fundamentals

07:17that you need loyalty and customer lifetime value in order to succeed.

07:24While positive customer engagement is generally desirable,

07:27rapid growth also brings negative feedback and the risk of public criticism.

07:33As the business expands, it's faced increased scrutiny. Over the past two years, Crumble has faced

07:39criticism about the nutritional content of their snacks and the company faced an investigation by the

07:44U.S. Department of Labor over child violations. Crumble CEO Jason McGowan acknowledged news of the

07:52child labor violations within some franchise locations, stating the issue arose from franchise

07:58owners wanting to involve their children in the business, which is against regulations.

08:05Anytime you're this big, you're going to get critiques, not just for your product, but for your

08:10practices. And I think as long as they can address them with respect and from what I saw in the

08:19legal battles that we just mentioned, whether it's child labor laws or trademark infringement,

08:27you know, they've come out with messaging that is on brand. It's consistent with their sort of,

08:35you know, we're in the end like a big company that feels local.

08:43I would definitely say they need to be careful. They're already operating kind of at the ceiling in

08:51some respects, having to figure out new approaches. They can't just open up new stores anymore. There's

08:57some contraction. So, you know, they're going to have to make sure that they get ahead of this and

09:04hopefully, you know, keep their audience still thinking that they're genuine.

09:13They've definitely set themselves apart, I guess, in terms of success and in this particular moment.

09:18But, you know, who knows how long it's going to last? I mean, ask the guys who are making unicorn

09:22lattes or cake pops a few years ago. You know, that was their moment then. And this is Crumble's

09:27moment now. And probably in about three weeks time, it's going to be somebody else's moment.

09:31And that's just the nature of how this particular category of food works. It moves really fast. It

09:38blows really high. And then something else will kind of come along afterwards to kind of

09:42fill in that space because you just can't, you can't stay that high on that much sugar

09:46for that long. It's just not sustainable.

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