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Insomnia Cookies plans to open 1,500 stores in the next 10 years

Ariana Perez-Castells, The Philadelphia Inquirer on

Published in Business News

Insomnia Cookies plans to add 1,500 new stores across the country in the next decade, according to its founder.

Seth Berkowitz, who founded the late-night cookie delivery business in 2003 as a student at the University of Pennsylvania, said in a recent interview that Insomnia’s presence in the United Kingdom and Canada was also growing with the expected addition of new stores by the end of 2025.

There are now nearly 350 Insomnia Cookies in the United States and abroad.

Growth is baked into the Insomnia business plan, he said.

“The whole business model is intended to open as many locations as possible,” he said. “From distribution to procurement, entire pieces of the supply chain are built for this number of locations that we plan on scaling to.”

The company’s growth comes as Krispy Kreme sold its majority ownership stake in the company last year to Verlinvest and Mistral Equity Partners, an investment company and private equity firm, for $127.4 million. Krispy Kreme’s remaining stake in Insomnia was sold in a $75 million transaction, the company announced earlier this month.

“We’re excited for this next phase,” Berkowitz said in a statement. He said he hopes “to establish Insomnia as the undisputed leader in the indulgence category” and “to rapidly scale and deliver more warm, delicious cookies to Insomniacs around the world.”

Hiring to support growth

To support Insomnia’s growth, the company is also investing in its leadership team, recently bringing on Brent Chu as chief financial officer, Katie Seawell as chief marketing officer, and Stephanie Boughner as chief people officer.

“They’ve all worked with founder-led organizations, so they quickly connect to our culture, and they’re deeply passionate about what we sell and what we do,” Berkowitz said.

 

Berkowitz also expects to hire for more roles out of the company’s headquarters in Philadelphia to support the growth, he said.

The company opened its new headquarters in Center City and launched a four-day work week last year for corporate employees. From Monday through Thursday, employees work from the office roughly from 9 a.m. to 6 p.m. So far, that’s gone “great,” Berkowitz said this month.

“It creates an outstanding work-life balance and a lot of collaboration,” he said. “We maximize our time together.”

Eating the competition

Despite plans for national expansion, Insomnia has grappled with local competition.

In Philadelphia's Center City alone, Levain Bakery, Chip City, Blueprint Cookies, and Taylor Chip also sell cookies, The Inquirer reported this year.

“We’ve seen the indulgence space get crowded and then a little bit thinner over time in the form of cupcakes and ice cream and frozen yogurt and doughnuts,” Berkowitz said. “Cookies are having their moment.”

Yet, amid this crowded landscape, he said the company has continued to see success and tries to lean into what it’s best at. Insomnia is an “incredibly enduring and durable brand,” he said, and the business has a strong focus on delivery using its bakeries as distribution depots.

“Our intent is for every cookie you eat globally to taste exactly the same,” he said. “The intent is, if you fly to the U.K., it tastes very similar to the cookies you’re having in downtown Philly.”


©2025 The Philadelphia Inquirer, LLC. Visit at inquirer.com. Distributed by Tribune Content Agency, LLC.

 

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