That’s the way the cookie Crumbls: no fear from Australian cookie makers about

With news that American bakery franchise Crumbl is prioritising plans to launch into the Australian market, it would be natural to think that many home-grown cookie makers are quaking in their proverbial boots.

It’s a solid assumption - Crumbl has a huge online following, as evidenced by its somewhat controversial Bondi pop-up late last month, which sent Sydneysiders flocking for their cookies.

So, in a relatively small sweets market, should Australian-owned dessert retailers be worried about Crumbl’s imminent arrival to our shores?

The short answer is no.

While Crumbl has built an impressive business in the US, Australians simply don’t consume desserts like Americans. Like many US-born companies (think Cinnabon, Krispy Kreme etc), Crumbl will open to much fanfare, but will likely struggle in the more tightly-held Australian market, particularly when times are tough financially and consumers are heroing high-quality, reasonably priced goods and services.

The Australian cookie sector is thriving - we have an innovative, ‘foodie-focused’ market nationally that is now back in the media spotlight, thanks to brands like Crumbl that have Aussies talking about cookies - and keen to compare offerings.

And when it comes to products, Aussie cookie makers have their recipes down pat. Our produce has long focused on quality, using locally sourced, first-rate butter, flour, sugar and chocolate. Aussie cookies simply taste better than their US counterparts, because we’ve invested in the highest quality ingredients.

It’s this commitment to quality and a hunger (pun intended!) for innovation that has enabled many Australian dessert producers to succeed long-term.

Like us, these brands have deep dived into understanding the nuances of the Australian market and palate - a key point of difference from their US counterparts.

There’s often an assumption that because a US food brand works well in North America, it will have a similar trajectory in Australia, and it’s simply not true.

Yes, some food outlets (McDonalds, KFC etc) have translated to Australian shores but to succeed, US chains need to differentiate their offering for the Australian consumer.

Aussie customers are different - we have a strong foodie culture and a deep appreciation for quality ingredients.

Brands that don’t lean into the Aussie palate simply won’t survive. We’ve seen many US chains (Taco Bell, Carl's Junior, Wendy’s - just to name a few!) fall flat in the Australian market, while other brands are still desperately trying to gain traction - with minimal success.

Some of it comes down to cost. In the US, the retail labour rate is less than half what Australian retailers pay their workers, making it much easier for single-offering brands to succeed, with very low overheads.

In Australia, there are virtually no brands that can survive on a single or dual product offering - businesses need to diversify to succeed.

If we look to history, our Cookie Man and Mrs Fields offerings were retail concepts, exclusively making fresh cookies in-store. This has morphed significantly over decades to include coffee, a cafe offering and now a wholesale arm.

A single offering of cookies in Australia’s competitive food retail space is not a long-term success plan. It will be interesting to see how the cookie Crumbls in the coming months…