How Insomnia Cookies Went From College Side Hustle To $200 Million Company

Insomnia Cookies CEO Seth Berkowitz's sweet tooth inspired him to bake and deliver cookies around his college campus in 2002. Last year, it brought in over $200 million.
Update: Krispy Kreme purchased a majority stake in 2018, paying roughly $139.5 million for 74.5% of the company, according to a 2021 SEC filing.
Produced by: Lauren Shamo
Senior Managing Producer: Eric M. Clark
Sr. Production Manager: Kathryn Mavrikakis
Camera: Sam Radutzky
Editor: Amy Marino
Animator: Elham Ataeiazar
Reporter: Tom Huddleston
Narrator: Nicolas Vega
Additional Footage: Insomnia Cookies, Getty Images
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How Insomnia Cookies Went From College Side Hustle To $200 Million Company

[@MultiMediaMouth]

Walter White of Cookies.

[@CueTheStage]

😂😂😂

[@biscaynesupercars]

Lmao

[@cartersa8758]

Jesse, let’s bake

[@beepboopbeepp]

@@cartersa8758 Jesse we have to bake!*

[@user-sr5kj6ej9z]

lLOl

[@shmuelb.1460]

It seems like his wife was a key factor to the success of the company. Kudos to her!

[@HaggisMuncher-69-420]

Nope. Wrong.

[@Efem1286]

Behind every successful man, there’s a woman 😉

[@akirebara]

I always applaud people like this. While his classmates were probably partying/getting high, he was out there juggling school and baking cookies and delivering them. Kudos to his dedication and hard work.

[@modernkings42]

His business would've gone nowhere without those classmates, let's be real

[@trayshana]

AGREE

[@nonefvnfvnjnjnjevjenjvonej3384]

but there are so many people who bake cookies man. i feel these documentaries, do not mention secret deals and privileges. How come this one becomes a 200 million company?

[@go_jeff_go]

@@modernkings42 gotta thank all the classmates who had munchies!

[@dankk_edibles]

​@nonefvnfvnjnjnjevjenjvonej3384 but how many of the people who bake TAKE ACTION and start selling/promoting door to door. You missed it

[@yawaokaidja2262]

It's always fascinating what is birthed out of struggle.

[@rjcubano]

“Struggle” or a “CRAVING”?

[@damlurker]

I was at Drexel in 2004. I remember these guys.. Before the smartphone, social media etc. we used to just call for delivery lol

[@matthewchow4991]

I was at temple and remember that too

[@nhnova1452]

Second year at Drexel rn

[@roycephillipsjr]

I would order Insomnia Cookies at the end of every semester in college! It was my treat to myself after the semester was done!!

[@madefromstardust2250]

You can thank marijuana for that

[@ohneben]

😅

[@dwaynekeenum1916]

@@MaxPotter365no

[@rustinpierce7269]

Yep college stoners probably make up 80% of his business.

[@twvs5]

I thought of this during the video ahahah

[@shotcallerdj8228]

Facts prices are crazy but the cookies are delicious especially when high 😂

[@rawan5804]

He captured the feeling of warm sweet delights delivered late with me! remember going to insomnia for the first time as a college kid late at night because what else can you do at 12am beside driving for some cookies? Haha

[@farzana6676]

Bruh. You got a name like a Hamas member.

[@EcomCarl]

Insomnia Cookies' journey from a dorm room idea to a multimillion-dollar business is a brilliant example of seeing an everyday need and transforming it into an opportunity. Seth's early hustle and creative marketing are key takeaways for any entrepreneur looking to make an impact with limited resources. 🍪

[@biscaynesupercars]

I’m glad There’s a whole late night food industry getting more mainstream

[@25447carepear]

Yall, when I tell you I have never been into cookies until I found this place. I've tried Tiff treats and etc but only tried ot once. Never went back. These cookies are bomb! I found them when I worked at UNC Chapel Hill and someone brought them. ❤❤ Insomnia is 🎉.

[@BASE5NYC]

Insomnia is awesome. We've been ordering from them for years. Thought they were just in NYC. There's one 3 blocks away on Pearl st. that delivers super fast. Get weed delivered and 20 mins later the cookies show up. Perfect.

[@armenakbalasanov9074]

How did they manage to delivery the cookies warm? Do they have special containers or what?

[@El_Diablo_12]

What an awesome guy. He really made the world a better place in a small but important way.

[@n33n055]

I got deja vu from this story, but it looks like Seth was the OG. crumbl cookies and nite owl cookies copied your whole origin story!

[@biscaynesupercars]

Do you live in miami? Nite owl isn’t that great to me

[@n33n055]

@biscaynesupercars yup. I like nite owl, the novelty at the very least. Never tried the other 2 to compare

[@biscaynesupercars]

@@n33n055 crumbl is way better in my opinion but nite owl being open extra late is a major plus though. There’s an insomnia on south beach but I’ve never tried it

[@mattypants]

I love Insomnia Cookies. Had the first time a few years ago and was in love. Tried crumble because everyone was going on about them. They dont hold a stick to Insomnia. I moved, and now im just outside of delivery. It's very sad!!

[@genius179]

These cookies are amazing, keep doing what you guys have been doing.

[@jp6846]

very inspiring!

[@lilmeower]

Yess insomnia you guys are the OG love it

[@MrColeBeans]

Guy seems genuine and all the best to him for starting this successful business I enjoyed these in college 😊

[@champslim]

Love going to this place after the bar in college.

[@dankk_edibles]

I love how he used the businesses revenue to grow vs seeking investors immediately

[@adamfisher8119]

crazy story

[@designergenes9490]

Great story and really enjoyed ❤️

[@JRPGGUY]

Love their macadamia and snikerdoodle cookies

[@iamhassanelsaddique]

Love this!!!

[@oceanwonders]

And yet I've never heard of them until now.

[@user-sr5kj6ej9z]

I love the fun, late night college-style branding. Watching this video I actually want to visit one of the stores. Looks so cute lol

[@maulikharia5032]

Godfather of cookies. So glad to have insomnia cookies 10 mins away from me at UMass Amherst

[@sadgearmy4892]

$5 cookies are insane

[@stacycastro7356]

Well explained.Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject..Thanks to Kristy Loreca, the lady you recommended to.....

[@AlizabethDaniel]

My main concern now is how can we generate more revenue?I can't afford to see my people savings crumble to dust.

[@MelissaBulawin]

Investment has been the easiest means to save and multiple money because money left for saving ends up used without returns.

[@VictoriaBenson-vg3lo]

That is true everyone needs more than their salary to be financially stable. Investing it with a reliable source is the best.

[@RechardAnord]

No doubt!! Kristy Loreca are highly responsive and always follow up to make sure my needs and questions are met.we were saving for a deposit to allow us to move to a new house, & true her guidance it was successful,

[@SmithNorman]

Please how can i get to Kristy Loreca?????????

[@user-gu8uj5qi2g]

Who did have an idea for a warm cookie delivery when stoned with friends late at night? But this guy went and did it 👍🏻🤣

[@barbarawillis5187]

Delivering warm cookies at night was a great idea. Cookies make a most people happy.

[@RolandJoeC]

Love these cookies I’m glad the business is expanding! 🎉

[@Savvynlady]

I ❤ Insomnia Cookies. And the Insomnia in Mobile is right across the street from our University. U OF South Alabama

[@MsStarryNights]

Love me an insomnia cookie on the late night!!!

[@joaqueen]

those cookies looks delicious and so is the guy who's in the thumbnail lol

[@trayshana]

VERY inspiring

[@StorytimewithSai]

Amazing! 🥰

[@jagsfan6988]

HAHAH I LOVE HOW NOBODY COMMENTED ABOUT HOW HE TRIED TO SCREW THE CONFOUNDER INSANE NOT A STAND UP GUY!

[@Christian_Luczejko]

How do you make this profile-piece without talking about theirsecret back room milkshake speakeasys, hidden behind a fake bookshelf, that you need a password to get into. It’s literally the most noteworthy feature about the business.

[@scombproductions]

you focused on drexels medical campus in center city instead of the main campus, directly next to and overlapping with upenn.

[@armenakbalasanov9074]

How did they manage to delivery the cookies warm? Do they have special containers or what?

[@nickmo58]

I'm starting a cookie business opening after 2am

[@mrlozmoore]

ive never understood. "the plan is to just keep going" ... at $200m how much does one person need?!

[@the.magic.catbus9459]

They had a food truck in my college campus!

[@liem6399]

Co founder is probably kicking himself for giving up all that equity even if he did get $3M

[@jhaeros]

100%, but if someone can’t set themselves up for life with $3 million cash then they’re doing something gravely wrong.

[@damlurker]

He probably went and started his own venture.

[@tatummacbride-deaver3081]

If cofounder had 50% stake then he would have "only" received $2,500,000. He ended up getting $3,500,000 after the lawsuit and didn't have to spend those years working for the business.

[@mrartdeco]

@@tatummacbride-deaver3081Isn’t 5% of 500 million is 25 million or am I missing something

[@TLBxFinds]

I wonder why they didn't give him what was owed from the start why did he have to sue his friend ....

[@peteregbujie]

The sugar industry has won.

[@emem2863]

Sometimes, you just want a cookie that a person made - not that mass manufactured stuff at the grocery store.

[@tyronecharizard363]

I love insomnia

[@mackintosh4784]

I am not in danger, i am the danger

[@kavsiva1604]

Bit disappointed we didn't hear how much he raised in his first round of funding but cool story

[@agilitypoodle99]

They said he invested the $10K profit from the first semester, into the business

[@mackintosh4784]

Jesse lets bake

[@bosslady6198]

Very smart idea just delivering is much though but now door dash can be able to pitch in

[@Paint2004]

And yet they still have issues keeping competitive wages and liveable hours for employees. All while still opening new stores.

[@jishani1]

dunno if you're aware of how things work in the real world, but fast food jobs aren't known for having stellar pay. ANY of them. you think people working at subway are pulling "competitive wages?" they also bake cookies as part of their duties.

[@AGreyAlien]

@@jishani1exactly. Democrats really live in a fantasy world.

[@tatummacbride-deaver3081]

Should have just paid $175,000 (5%) and been honest.

[@ricodash5330]

Didn’t the thumbnail say $500mil earlier today?

[@taylorembach8559]

Went to the website. They don't list the price until u check out. I don't like that 😢

[@douglassmith9445]

I’ve been wondering this whole time why insomnia cookies was so popular when crumbl cookies are the superior cookie company out of any currently. Never thought about a niche late night delivery service for a cookie. It all makes sense now!

[@kshitizmishra5845]

are cookies really a billion dollar thing?

[@colbycronin8722]

I’ve been addicted to sleepy cookie since I was a wee lad

[@Soyou-rq1xm]

okkkkkk Kent State!!! 7:47

[@Keprion]

18$ for a chocolate chip cookie and a scoop of vanilla ice cream. No wonder it did well

[@andrewgalvan5852]

excellent margins

[@GGTanguera]

Not if you use real ingredients (real butter not margarine or lard, coco sugar not dextrose, nuts, dark chocolate not “chocolate chips) 😅

[@jishani1]

@@GGTanguera you have no idea the actual cost of baked goods. they are the cheapest food to produce in scale in terms of raw ingredients. out of a batch of dough (and they make hundred pound batches) they have less than $1 in raw ingredients in a single cookie. even using high quality butter and chocolate. because the amount required to make a single cookie is so low and businesses buy in bulk at wholesale prices, not what you would pay retail in a store. add in a scoop of high quality vanilla ice cream and their price is still under $2 per unit on that one. ANY food you buy from a bakery, deli, or restaurant will have at minimum a 33% mark up over their costs on it. baked goods generally have a much higher mark up than that because the cost per unit is tiny. $0.18 in a doughnut, no ones going to object to paying $2 for it. that's a lot higher of a margin than the 33% you'd expect on a burger.

[@ceoshuvo]

GREAT

[@kjkrop88]

Jesse, we need to cook

[@amochswohntet4434]

I’ve never had this brand before, but I know that once you’ve had the best you inevitably become a snob, and I am a little bit of a cookie snob.

[@LegendoftheGalacticHero]

Their vegan gluten free chocolate chip made me feel as if I was eating a traditional cookie. Only time I had that made me feel that

[@itstonycia]

LET ME START SELLING COOKIES FROM MY DORM

[@unskeptable]

What do you do for a living? I sell cookies. Oh, and how did you get the ferrari? I sell cookies!

[@midnightsxtc]

7:15

[@huffbj]

He looked cool in school

[@MrColeBeans]

Do they have gluten free cookies at insomnia?

[@rillyjo5810]

22 stores and no profit. Yikes. Glad it worked out tho

[@RodoMallard]

LOL that is not where Drexel is haha

[@poggster6047]

I like him, unlike the Crumbl guys… they lack passion and seem to be only in it for the money. Tech guys who couldn’t make it on tech so they looked elsewhere

[@dancarr111]

Taylor Otwell of cookies

[@stevenmichaeleich9856]

So much better than Crumbl

[@tb11212]

Why did he only have to pay the co-founder $3.5 million? 5% would've been $25 million...and a bunch of the lawsuit stuff is behind a paywall on Google.

[@OrganicMachoCapitalist]

Louis CooKie

[@marufawal]

they should have asked me for money they would have had me at late night cookie

[@JamoSimcity47]

This man has had a choke hold on STL's WASH U students for years now lol

[@singlefathersurrogacy]

Wearing wool socks to bed=best sleep you've had🧦.

[@lf2334]

They're doing really well for an incredibly stupid idea. This should show anyone that you can make a lot of money if you try harder.

[@Crazy_stunt_ridez]

Can you guys & CRUMBLE COOKIE collab please n also make a vid outta it by uploading it to YT? THX

[@bombaybeach208]

It's amazing how you can make the same product hundreds of companies are making and be successful. Anyone can make cookies like this. I don't get it.

[@keithakola]

I don’t understand how students today can afford these these?

[@turkeyman631]

When I was in high school, we had a guy named Walter who was in charge of our cafeteria and he put as much love as you could put into high school lunch. Luckily, it was right before Michelle Obama would essentially ban things like this, but he would make cookies everyday for the 'canteena' or what ever you want to call it. Needless to say, I wouldn't be able to resist the temptation of a warm, homemade cookie. I can see how Seth succeeded, especially with his outlook on everything. Never a 'it's impossible' state of mind.

[@mrartdeco]

Genius idea for USA market who loves to get fat in any ways possible 🤣🤣🤣 Seriously… Genius

[@jishani1]

Mexico has a higher obesity rate. England and Scotland are comparable. but sure, "America bad! haha am i cool guys?" 🤡🤡🤡

[@mfimabefig9822]

*Once I heard KK is involved it’s 👎*

[@davidmirandajr]

It might be that his cookies taste very well because everything else is generic af

[@ms_cartographer]

Insomnia Cookies > Crumbl cookies.

[@ObakhePahlane-ov1qh]

I expected more people mad at Jerry🤮😡the guy ditched his partner to work alone and cane back when the rainbow rose

[@Kingcommaalex]

He looks like he’s eaten a few too many of the cookies

[@enigma4649]

Hmmmm, how about something warm and savory like soup in the winter? Much more healthier.

[@samjacobson4844]

how many grandkids you got

[@whatwhat9004]

Soup 🤮🤮

[@enigma4649]

@@whatwhat9004 Big Pharma loves people like you.

[@enigma4649]

@@samjacobson4844 I'm on a mission to put Big Pharma out of business even it means giving up my sugar addiction.

[@StreetGeekz]

@@samjacobson4844😂😂😂😂

[@JoanaCosta-mg1ox]

I thought the batter had something special that would make you fall sleep 😅 I don’t understand how this name can work..since if you are suffering from insomnia, eating things like sugar and chocolate would make it worse. Make it make sense please…

[@virtuouschu5745]

The time I had it was stale. I prefer Crumbl.

[@mihai8595]

How the munches brought the dough

[@wbae1340]

Weird. This popped up in my college city randomly before I graduated. We always made fun of it because it popped up after a local established cookie company (same concept) and crumble (main headquarters region) - so we always laughed about it and made fun of whoever went there. Curious if it even exists anymore Edit: LOL, nope it’s permanently closed. I was right. What idiots

[@mackintosh4784]

Say my name

[@MoneyMan28]

I buy cookies at Walmart

[@douglassmith9445]

You do realize this is like commenting on a pizza restaurant yt video and saying i buy pizza at walmart?

[@GarryFPV]

@@douglassmith9445I buy pizza at Walmart

[@douglassmith9445]

@@GarryFPV only at walmart?

[@GarryFPV]

@@douglassmith9445 I buy pizza at Walmart

[@douglassmith9445]

@@GarryFPV if you want your comment to have the same meaning as the original post, you are implying you do not buy and have pizza delivered from places that only sell pizza and just buy your pizza from walmart.

[@huffbj]

Proof HIGHDEAS pay off 😂

[@Observer100-cn7gv]

Where is your hair now?

[@tonyf333]

Crumbl is better by far.