Chip City, the New York-born cookie chain famous for its oversized gooey cookies, announced Friday (Oct. 2) that it is closing all of its remaining stores, ending nearly a decade in business. On Thursday evening, employees received an email from president Nicolas Baizan saying the company had "decided to cease all store operations" — the 22 remaining locations would permanently close at the end of business that day. The whiplash was real: on Thursday morning the brand was still promoting a new seasonal "Crisp Apple Fritter Cookie" on social media, and fans showed up Friday to find locked doors.
The company said in a statement: "Despite extensive efforts to stabilize our business in the face of significant macroeconomic headwinds, we have made the very difficult decision to close all of our Chip City locations. We are grateful to our dedicated employees and loyal customers who have supported us for the past 10 years." The internal email to staff was blunter: consumers are spending less, tastes keep shifting, sales have suffered — and "we no longer have the funding required to operate this business."
Childhood friends Peter Phillips and Teddy Gailas founded Chip City in Astoria, Queens, in 2017. It built a cult following on oversized cookies and a rotating menu of more than 180 flavors teased on social media. In 2022, Enlightened Hospitality Investments — the growth equity fund affiliated with restaurateur Danny Meyer's Union Square Hospitality Group — put in $10 million (the company raised $17.5 million in total), and Chip City grew from 14 stores to nearly 50 across nine states: New York, New Jersey, Connecticut, Massachusetts, Texas, Virginia, Florida and Illinois. At its peak it was held up as a fast-casual success story.
Earlier this year the mood was still bullish: when Baizan was promoted to president, the company said he would lead its "next phase of growth" across 39 locations. Then came the cliff — all three Connecticut stores closed Sept. 28, two Northern Virginia shops closed Sept. 29, and the last 22 shut this week. Adding to the drama is a co-founder feud: Phillips stepped down as CEO in March, and on Sept. 28 — four days before the shutdown — he sued the company seeking $157,500 in unpaid severance and benefits, naming the investor EHI and two executives as defendants as well.
Employees took the hardest hit: many learned Thursday night that it was their last day. At the Upper West Side store at 370 Columbus Avenue in Manhattan, a would-be customer found locked doors Friday morning; fans flooded social media in disbelief.
Chip City is not alone. Crumbl, the category's largest player with more than 1,000 stores, shrank its physical footprint by 16% from 2024 to 2025, has closed at least 57 locations this year, and saw traffic plunge 32% year over year in August. The 20-year-old New York chain The Cookie Factory closed its last brick-and-mortar stores in August to sell exclusively through supermarkets. The great American cookie war is cooling.
The company offered no plan for gift cards or loyalty points — customers holding them are likely out of luck. Phillips's lawsuit is still pending. From neighborhood shop to investor darling to overnight liquidation, Chip City compressed the full arc into nine years.