Seth Berkowitz, the CEO of Insomnia Cookies, started the business as a college student at the University of Pennsylvania in 2002. He satisfied a late-night cookie craving by personally delivering warm cookies around campus in the early hours of the morning. His business quickly grew, and by the time he graduated in 2004, he opened Insomnia’s first brick-and-mortar location near another college campus. His innovative approach to providing late-night delivery options for college students led to the company’s expansion to over 260 locations worldwide, with a reported value of over $500 million following a majority-stake acquisition by Krispy Kreme in 2018.
Managing the growth of Insomnia Cookies from a college side hustle to a national business was challenging for Berkowitz. As the sole employee in the early years, he made money but struggled to cover expenses as the company expanded. Berkowitz experimented with various business models and stayed funded through angel investors to keep the business afloat. Despite facing setbacks and challenges, Berkowitz persevered through the difficult years, including downsizing the corporate team to ensure the company’s survival and eventual profitability.
After nearly a decade of trials and experimentation, Berkowitz returned to a brick-and-mortar model for Insomnia Cookies. He focused on creating a buzz with large signs in store windows and offering quick deliveries to encourage repeat customers. With the introduction of a mobile ordering app, the strategy proved successful, and Insomnia funded a new location with its own internal cash flow for the first time. This marked a significant milestone for the company, which allowed them to control their destiny and expand to open 125 new stores over the next six years.
The Krispy Kreme acquisition of Insomnia Cookies brought the company through the challenges of the Covid era. However, it also led to drama between co-founders, with one partner suing over the sale. Despite the legal battles, Berkowitz remains focused on growing the brand and opening dozens of new locations across the U.S. in 2024. He considers Insomnia Cookies a perseverance story, overcoming numerous obstacles to achieve success in the competitive food industry. Berkowitz’s journey from a college student baking cookies in his kitchen to the CEO of a multi-million dollar company showcases the determination and resilience required to build a successful business.
