What happened to Chip City? ‘Gooey’ cookie chain abruptly closes all stores as consumer tastes shift
Chip City, a once-popular cookie chain that began in the Astoria neighborhood of Queens, New York, has abruptly closed all of its stores. The chain stunned its customers with the October 2 announcement on social media and its website . “Despite extensive efforts to stabilize our business in the face of significant macro-economic headwinds, we have made the very difficult decision to close all of…
Chip City, a cookie chain that originated in Astoria, Queens, abruptly closed all of its stores on October 2. The company cited "macro-economic headwinds" and shifting consumer preferences as the reasons behind the abrupt closure, which had been announced on social media and its website. Chip City, founded in 2017 by childhood friends Peter Phillips and Teddy Gailas, gained popularity for its giant, ooey-gooey cookies, which were shared extensively online.
By 2022, the chain had expanded to 50 locations across nine states. However, Chip City's expansion was short-lived as it began closing stores in Connecticut at the end of September and ultimately closed its remaining 22 locations. The company's president, Nicholas Baizan, expressed the decision in a message to employees, stating that consumers were spending less and their preferences were evolving.
Phillips, one of the cofounders, filed a lawsuit against Chip City and its investors, alleging he was entitled to additional pay and benefits after his employment ended.
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