Insomnia Cookies

Insomnia Cookies is a U.S.-based chain of bakeries specializing in warm, fresh-baked cookies, brownies, cookie cakes, ice cream, and beverages delivered daily until 3 AM. Founded in 2003 by Jared Barnett and Seth Berkowitz at the University of Pennsylvania, the company operates more than 265 stores across the continental U.S., Canada, and England. With approximately $230 million in annual sales and 764 employees, Insomnia has built a unique late-night fast-casual dessert delivery concept targeting college students and night-shift workers. The company combines company-owned retail bakeries with digital ordering and delivery platforms, and plans to expand to 1,800 stores in the U.S.

1. More than 265 stores primarily in the continental U.S., with international locations in Canada and England
2. In 2024, Krispy Kreme sold a majority stake to Verlinvest and Mistral Equity Partners at a $350 million enterprise value
3. The business generates approximately $230 million in annual sales
4. The brand targets 1,800 stores in the U.S.
5. Insomnia Cookies employs 764 people as of December 2021

Insomnia Cookies occupies a unique position as a late-night fast-casual dessert delivery concept targeting college students and night-shift workers, with many stores located near university campuses. The brand differentiates through warm, fresh-baked products delivered on-demand until 3 AM, leveraging digital ordering, a loyalty program, and experiential retail innovation through the CookieLab concept. This upscale positioning emphasizes premium, Instagram-worthy unboxing experiences and product quality.

• Cookies: Chocolate Chunk, Snickerdoodle, Chocolate Peanut Butter Cup, S'mores Deluxe
• Brownies and Cookie Cakes: with toppings such as M&M, Cookie Dough, and Snickers
• Ice Cream: Full menu with customizable options including cookie a la mode and cookiewich
• Beverages: Cold milk available with any order
• Dietary Options: Vegan and gluten-free chocolate chip cookie
• Catering and Corporate Orders: Cookie Concierge team for sales inquiries
• CookieLab: Secret store location in East Passyunk for cookie innovation and customization

Insomnia Cookies represents a multi-location, rapidly scaling CPG-adjacent business with aggressive expansion targets (1,800 units). As a franchise and company-operated bakery network, Insomnia faces complex packaging requirements across baked goods delivery (cookie protection, insulation, branding), retail point-of-sale presentation, and e-commerce shipping. A strategic packaging provider can address cold-chain integrity for ice cream products, protective and branded delivery boxes to preserve warm cookie freshness and brand impression, portion-control packaging for retail and corporate catering channels, and sustainability initiatives aligned with their upscale positioning.

Capability Fit: Insomnia operates a highly distributed multi-unit model (265+ stores expanding to 1,800) with direct delivery operations and retail fulfillment requiring primary protective packaging for warm cookie delivery (insulated boxes, liners, moisture barriers), retail shelf-ready packaging (cookie boxes, brownie trays, ice cream containers), e-commerce and direct shipping mailers with protective inserts, and custom secondary packaging for loyalty program rewards and corporate catering. Value-Add Services: Custom-printed branded delivery boxes that reinforce warm-product unboxing experiences, insulated packaging solutions for ice cream shipment and multi-unit orders, right-sized optimized mailers to reduce shipping costs and dimensional weight fees, sustainability packaging options (compostable, fiber-based alternatives) supporting brand premium positioning, co-packing and logistics integration for rapid rollout across 1,800+ planned locations, and supply chain agility for limited-edition flavors and seasonal products. Potential Challenges: Fresh-baked cookies and ice cream demand superior moisture and insulation control with tamper-evident features; the 1,800-unit expansion requires vendor capacity, flexible short-lead production, and just-in-time fulfillment across geographically dispersed stores; Verlinvest and Mistral Equity Partners (as of mid-2024) prioritize unit economics and margin optimization, making packaging cost reduction and supply chain efficiency key KPIs; store-to-customer delivery differs from traditional QSR operations requiring different packaging durability standards; product must arrive warm and undamaged to maintain premium brand perception. Why a Packaging Provider Suits This Prospect: Insomnia's business model is fundamentally packaging-intensive with baked goods protection, brand differentiation, and customer experience hinging on packaging quality; multi-unit scale and rapid expansion create continuous volume growth cycles where packaging partnerships drive synergies and cost reduction; food safety and compliance require certified hygienic packaging with clear traceability; competitive landscape (Crumbl, Tiff's Treats, Sprinkles Cupcakes) intensifies need for differentiated unboxing experiences; private equity ownership signals focus on operational efficiency and supply chain consolidation where packaging partners add significant value.

The U.S. packaging market was valued at USD 201.12 billion in 2024 and is projected to reach USD 286.26 billion by 2033.

The United States Packaging Market is expected to grow at a CAGR of 3.98% to reach USD 254.01 billion by 2030.

• E-Commerce and Omnichannel Fulfillment: Protective packaging is essential with right-sized boxes and sustainable materials increasingly prioritized to reduce shipping costs, minimize damage, and improve consumer unboxing experiences.
• Shift to Sustainable and Fiber-Based Materials: The paper and paperboard segment is expected to contribute approximately 40% market share by material type in 2025 due to recyclability, cost-effectiveness, and regulatory support for sustainable materials.
• Flexible Packaging Growth: The flexible plastic films segment is likely to experience a CAGR of 6.8% during the forecast period with lightweighting mandates and shelf-life extension imperatives driving adoption.
• Biodegradable and Bio-Based Materials Acceleration: The biodegradable and bio-based materials segment is the fastest-growing, driven by plastic reduction policies and consumer preference for sustainable solutions increasingly used in food packaging.
• Automation and Digital Customization: Investments in automation-ready secondary lines allow consumer packaged goods firms to manage labor shortages and SKU proliferation efficiently while maintaining production speeds of 50-60 units per minute.

Insomnia Cookies was founded in 2003 by Seth Berkowitz and Jared Barnett as University of Pennsylvania juniors. Seth Berkowitz is the current CEO. Berkowitz launched the business as a side hustle and has led the company through its growth to a multi-million-dollar enterprise.

The business generates approximately $230 million in annual sales.

In July 2024, Krispy Kreme sold a majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners at an acquisition amount of $127 million (enterprise value of $350 million). Seth Berkowitz stated: 'We're united by a shared vision: to establish Insomnia as the undisputed leader in the indulgence category.' The brand believes it can reach 1,800 stores in the U.S.

Prospect details are not publicly visible.