Bethesda

Chip City Announces Permanent Closure of All Locations

Chip City has announced the permanent closure of all of its locations, months after the New York-based cookie chain closed its only Maryland store.

“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 our Chip City locations,” the company announced. “We are grateful to our dedicated employees and loyal customers who have supported us for the past 10 years.”

The announcement marks the end of the cookie chain, which had expanded throughout the New York area and into other markets along the East Coast.

Chip City previously operated one Maryland location at 4939 Elm St. in the Shoppes of Bethesda. That store permanently closed in January 2026 after a little more than two years in business.

The Bethesda shop opened in November 2023 in the former Fancy Cakes by Leslie space. Its arrival generated significant attention, including long lines and heavy social media interest during its opening weeks.

Chip City was founded by Theodore Gailas and Peter Phillips and grew from a side business into a chain with locations across multiple states. The company had previously announced ambitious expansion plans, with Forbes reporting that its growth was backed in part by a $10 million investment led by Shake Shack founder Danny Meyer.

The chain was known for its large cookies and rotating weekly menu, which included staples such as chocolate chip alongside flavors including blueberry cheesecake, peanut butter and jelly, Nutella sea salt, and seasonal offerings.

When the Bethesda location closed, Chip City still had nearby locations operating in Northern Virginia. Those stores are now included in the companywide closure announcement.

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