How I Built Crumbl Cookies: A Journey of Innovation, Tenacity, and Community
Based on the podcast episode "Crumbl: Jason McGowan" from "How I Built This with Guy Raz" hosted by Guy Raz.
Introduction
In this engaging episode of How I Built This, host Guy Raz delves into the inspiring journey of Jason McGowan, co-founder of Crumbl Cookies, alongside his partner Sawyer Hemsley. Together, they transformed a simple cookie business into a nationwide sensation by blending technology, viral marketing, and a steadfast commitment to quality and community.
Early Beginnings
Jason McGowan grew up in Alberta, Canada, where his life was deeply influenced by his faith. As a member of the Church of Jesus Christ of Latter-Day Saints, Jason served a mission in Las Vegas, Nevada, during the late 1990s. This experience not only instilled in him tenacity and resilience but also ignited his passion for community and service.
Sawyer Hemsley, Jason's cousin, also served a mission and returned with a desire to be more involved in his local culture. This shared background and values laid the foundation for their future entrepreneurial endeavors.
Transition into Entrepreneurship
After their missions, both Jason and Sawyer sought to find their purpose beyond their technical careers. Jason, with his background in technology and viral marketing, and Sawyer, with his analytical and design skills, decided to pivot towards entrepreneurship. This shift was driven by a mutual recognition of a void in their lives and a desire to create something impactful.
Founding of Crumbl Cookies
In 2017, Jason and Sawyer founded Crumbl Cookies in Logan, Utah. Unlike traditional cookie businesses that rely on cherished family recipes, they approached cookie-making with a tech startup mentality. Their goal was to create the "world's best cookie" through relentless testing and optimization.
Transcript Highlight:
Jason McGowan [03:28]: "I launched my cookie business like it was a tech startup... until it was optimized for sweetness and texture and eventually buzz."
Their initial focus was on delivering high-quality, warm cookies efficiently. They built their own app to manage orders and deliveries, ensuring a seamless customer experience right from the start.
First Store and Immediate Success
Crumbl's first store, launched in Logan, Utah, offered a single product: the chocolate chip cookie. Despite the simplicity, their meticulous attention to recipe perfection and customer satisfaction paid off.
Transcript Highlight:
Sawyer Hemsley [27:50]: "If that landlord had not lowered the price of that building, I'm not sure where we would be today."
The founders' strategic decision to secure an affordable lease enabled them to establish their presence without overextending financially. The store's success was immediate, with customers eagerly purchasing the warm, oversized cookies.
Facing Competition and Scaling
Shortly after launching, Crumbl faced unexpected competition when a rival startup opened a similar cookie shop just a week before them in Logan. Instead of being discouraged, Jason and Sawyer doubled down on their commitment to quality and customer experience.
Transcript Highlight:
Sawyer Hemsley [34:31]: "They opened from their homes and they wanted to do delivery, and they launched one week before us... we knew that it all comes down to the product."
This focus on offering an exceptional product allowed Crumbl to quickly regain momentum and build a loyal customer base, despite the initial setback.
Franchising and Expansion Strategy
Understanding the importance of scalability, Jason and Sawyer adopted a franchising model early on. Their first franchise location in Bountiful, Utah, opened to tremendous success, reinforcing the viability of their business model.
Transcript Highlight:
Sawyer Hemsley [40:05]: "We opened up a few more crumbles, and all of a sudden they started doing really well."
The franchising approach enabled rapid expansion without the need for significant external capital. By 2019, Crumbl had grown to 55 locations with revenues soaring to approximately $4.5 million.
Role of Technology and Social Media
Leveraging their tech backgrounds, Jason and Sawyer integrated advanced technology into all aspects of their business. From their custom app for ordering and delivery to the use of AI-powered tools for training staff, technology was a cornerstone of Crumbl's operations.
Social media, particularly TikTok, played a pivotal role in Crumbl's marketing strategy. By engaging authentically with customers and embracing viral trends, Crumbl amassed a massive following that rivaled established brands like Starbucks and Domino's.
Transcript Highlight:
Sawyer Hemsley [57:19]: "We have more TikTok followers than Starbucks and Domino's combined."
Their innovative approach to social media included featuring customer reviews, showcasing behind-the-scenes store operations, and experimenting with unique cookie flavors that sparked conversations and increased brand visibility.
Unique Business Practices and Brand Differentiation
Crumbl's commitment to innovation is evident in their rotating menu, introducing six new flavors each week unveiled during their popular "cookie drop" events every Sunday night. This strategy not only keeps the offerings fresh but also creates a sense of urgency and exclusivity among customers.
Additionally, Crumbl's distinctive pink packaging, inspired by a classic 1959 Cadillac, sets them apart visually from other cookie brands. This attention to branding details fosters a memorable and cohesive customer experience.
Transcript Highlight:
Sawyer Hemsley [55:28]: "We have our own custom app that shows people how to train... Our brand will always do that."
Their willingness to experiment with unconventional flavors, such as Everything But Bagel or Corbread, further distinguishes Crumbl in a crowded market, turning even their less popular flavors into viral topics.
Challenges and Legal Battles
As Crumbl grew, so did its challenges. Rapid expansion brought logistical complexities, and maintaining consistency across multiple locations became a significant hurdle. Additionally, Crumbl faced legal battles when former employees stole trade secrets, leading to lawsuits against competitors mimicking their brand.
Transcript Highlight:
Sawyer Hemsley [63:36]: "If we just had luck and not all the other things, it wouldn't have worked."
These legal challenges tested the founders' resilience and commitment to protecting their unique business practices and recipes. However, Sawyer reflected that such battles caused temporary distractions from their primary focus on growth and innovation.
Maintaining Growth and Future Plans
By the end of 2022, Crumbl had achieved over a thousand locations with revenues surpassing a billion dollars. Despite their impressive growth, the founders remain committed to strategic expansion rather than unchecked scaling. They prioritize quality, customer experience, and maintaining their core values, such as being closed on Sundays to honor family time and community.
Transcript Highlight:
Sawyer Hemsley [66:12]: "If you stop innovating, you stop growing, you start dying... We're really excited about it."
Crumbl continues to diversify its offerings, introducing cakes and pies, ensuring that the brand remains dynamic and responsive to customer preferences. Their strategic decisions, such as slowing down expansion to focus on quality, demonstrate a balanced approach to sustaining long-term success.
Conclusion
The story of Crumbl Cookies is a testament to the power of combining technology, innovative marketing, and unwavering dedication to quality and customer satisfaction. Jason McGowan and Sawyer Hemsley leveraged their unique skills and experiences to build a brand that resonates deeply with a diverse customer base. Their journey underscores the importance of adaptability, community engagement, and strategic growth in building a lasting and impactful business.
Final Transcript Highlight:
Sawyer Hemsley [67:34]: "It is just tenacity and hard work can get you through a lot of stuff. And second is the timing... And I think the other thing, too, is the learnings from my faith..."
Crumbl's evolution from a single-store operation to a billion-dollar enterprise serves as an inspiring blueprint for aspiring entrepreneurs seeking to blend passion with strategic innovation.