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

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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

Опубликовано:

26 сен 2024

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Комментарии : 358

@olivierauberger 4 месяца назад

When Insomnia cookies recruited drivers and staff in Chicago, they chose to pay decent wage. It's something that I never forgot.

@natashadickson4819 Месяц назад

Thank you for mentioning that.

@catpoke9557 Месяц назад

I've been considering working there, because they make a lot of claims that if true would make them an excellent place to work. But I'm not sure if the claims are true or not as employers often lie or exaggerate. Did you work there? If so, were the claims they make about their work environment accurate at your location? I know obviously things won't always be the same for every location and things can change with time, but any info helps.

@lissethg7249 15 дней назад

they say they’re paying $10-13 an hr in Texas

@MultiMediaMouth 5 месяцев назад

Walter White of Cookies.

@CueTheStage 5 месяцев назад

😂😂😂

@biscaynesupercars 5 месяцев назад

Lmao

@cartersa8758 5 месяцев назад

Jesse, let’s bake

@beepboopbeepp 5 месяцев назад

@@cartersa8758 Jesse we have to bake!*

@user-sr5kj6ej9z 5 месяцев назад

lLOl

@shmuelb.1460 5 месяцев назад

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

@HaggisMuncher-69-420 5 месяцев назад

Nope. Wrong.

@Efem1286 5 месяцев назад

Behind every successful man, there’s a woman 😉

@tiernyjasmine8678 4 месяца назад

@@HaggisMuncher-69-420 how?

@mmmu09 3 месяца назад

@@HaggisMuncher-69-420 I mean she helped test and came up with the name. There are lots of little things people do to support each other.

@myge6015 3 месяца назад

Woman lol nah

@damlurker 5 месяцев назад

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 5 месяцев назад

I was at temple and remember that too

@nhnova1452 5 месяцев назад

Second year at Drexel rn

@oooh19 3 месяца назад

Honestly modern tech makes it easier it’s an advantage we don’t need to call we can just use an app or order online etc

@AZ-rg3rf Месяц назад

I was too

@roycephillipsjr 5 месяцев назад

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

@Me-eb3wv Месяц назад

Cute :3

@Sai-q7g 7 дней назад

What did they cost? With delivery ? Question from the uk

@roycephillipsjr 6 дней назад

@@Sai-q7g I don't remember how much they cost at that time. But they are about $3 per cookie now.

@yawaokaidja2262 5 месяцев назад

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

@rjcubano 5 месяцев назад

“Struggle” or a “CRAVING”?

@dgjdtuvsth4051 2 месяца назад

Ordering out all the time, living in dorms, and going to college. That’s not struggling. That’s just a kid without problems able to pursue ideas.

@QuirkyGirl10 6 дней назад

@@dgjdtuvsth4051ideas are nothing without struggle and hard work to bring them to life.

@thabiso_kgabung 2 месяца назад

I'm a South African. I'm just blown away at how there's a market for everything in America. Krispy Kreme even bought a stake in this? You guys are really the land of milk and honey

@jacobsoto7228 2 месяца назад

Capitalism is magic.

@LiciKai Месяц назад

As someoe who used to teach immigrants and refugees, I can advise you to not believe this. So many of my Black and Brown student in particular, thought the same. Then they got here and quickly found out they did not have 1/3 of the opportunities their European classmates had. You notice how most to the people in these stories are White and Asian men. There is a reason for that.

@Renegaderabbit8 Месяц назад

@@LiciKai your students probably would have benefitted by having another teacher who could encourage and inspire them to go out and create their own opportunities. Their skin color will never be the reason if they don’t succeed. Your pessimism will be the reason.

@Renegaderabbit8 Месяц назад

I know a young South African man who could not find work because of his accent and had no particular skillsets besides his work ethic and drive to succeed. He started driving for Uber and enjoyed it but one day realized there were alot of hungry people at night on the weekends. He didn’t know how to cook so instead he just went to buy a couple of catering platters from a restaurant and bought boxes to portion them out to individual meals. Then he charged 3x what he paid and just sold them to drunk people while he was doing uber. And at time he would just stand out front of clubs that were letting people out. This was 6 months ago. The saw his Instagram yesterday and he is driving a Mercedes and has his own food cart.

@LiciKai Месяц назад

@@Renegaderabbit8 - 🤣 - Whew! Looking for my "Colonizer-Be-Gone" spray.

@rawan5804 5 месяцев назад

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 5 месяцев назад

Bruh. You got a name like a Hamas member.

@oooh19 3 месяца назад

Yea not everyone is necessarily partying and if they are well before going home they might grab a cookie 🍪!

@madefromstardust2250 5 месяцев назад

You can thank marijuana for that

@ohneben 5 месяцев назад

😅

@dwaynekeenum1916 5 месяцев назад

@@MaxPotter365no

@rustinpierce7269 5 месяцев назад

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

@twvs5 5 месяцев назад

I thought of this during the video ahahah

@shotcallerdj8228 5 месяцев назад

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

@biscaynesupercars 5 месяцев назад

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

@25447carepear 5 месяцев назад

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 🎉.

@El_Diablo_12 5 месяцев назад

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

@EcomCarl 5 месяцев назад

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. 🍪

@gnocchi_ 3 месяца назад

ChatGPT responses be like:

@The_Pope_real 2 месяца назад

@@gnocchi_ fr 😂

@akirebara 5 месяцев назад

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 5 месяцев назад

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

@trayshana 5 месяцев назад

AGREE

@nonefvnfvnjnjnjevjenjvonej3384 5 месяцев назад

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 5 месяцев назад

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

@dankk_edibles 5 месяцев назад

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

@fraai 4 месяца назад

bro that noise at 00:53 shook me

@BASE5NYC 5 месяцев назад

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 4 месяца назад

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

@The_Pope_real 2 месяца назад

@@armenakbalasanov9074 i'd assume they have those insulated pizza bags

@AZ-rg3rf Месяц назад

@@armenakbalasanov9074 the delivery person has to hand massage them to keep them at room temperature until it gets there

@liem6399 5 месяцев назад

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

@jhaeros 5 месяцев назад

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

@damlurker 5 месяцев назад

He probably went and started his own venture.

@tatummacbride-deaver3081 5 месяцев назад

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 5 месяцев назад

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

@TLBxFinds 5 месяцев назад

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

@barbarawillis5187 5 месяцев назад

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

@H.K.5 4 месяца назад

These cookies are 99.1% pure.

@jp6846 5 месяцев назад

very inspiring!

@copywritergena1225 3 месяца назад

There were a lot of smart business decisions made here, but you know what? This company succeeded because their cookies are the best. It's that simple.

@usurparemagnus 8 дней назад

They make some fire cookies man, and people recognize and reward them with success because of the taste and experience.

@s28333 4 месяца назад

I love these cookies!!! Thank you for not giving up!

@smithco627 3 месяца назад

The fact I can get some cookies right now is tempting at 2 in the morning

@JRPGGUY 5 месяцев назад

Love their macadamia and snikerdoodle cookies

@lilmeower 5 месяцев назад

Yess insomnia you guys are the OG love it

@edwardv4546 2 месяца назад

Insomnia was literally across the alley from my home in college. The BEST cookies and all for $1. They’re overpriced now but still pretty good.

@adamfisher8119 5 месяцев назад

crazy story

@joaqueen 5 месяцев назад

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

@ShaneGillis432HZ 5 месяцев назад

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

@sprinter2live 15 дней назад

for real, dude made 140million and still bilked his co-founder out of 4mil.

@genius179 5 месяцев назад

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

@MrEndzo 3 месяца назад

Business partner: You owe me 5% of 140 million Berkowitz: Best I can do is 3.5 million.

@user-sr5kj6ej9z 5 месяцев назад

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

@sadgearmy 4 месяца назад

$5 cookies are insane

@kellyc3817 Месяц назад

Y’all were literally the best part of my friends and I’s nights

@maulikharia5032 5 месяцев назад

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

@RolandJoeC 5 месяцев назад

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

@kavsiva1604 5 месяцев назад

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

@agilitypoodle99 5 месяцев назад

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

@nickmo58 5 месяцев назад

I'm starting a cookie business opening after 2am

@MrColeBeans 5 месяцев назад

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

@Savvynlady 5 месяцев назад

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

@Keprion 5 месяцев назад

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

@counterthirty 5 месяцев назад

excellent margins

@GGTanguera 5 месяцев назад

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

@jishani1 5 месяцев назад

@@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.

@mattypants 5 месяцев назад

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!!

@Allaiya. 2 месяца назад

They had these when I was in College. Back when you had to use the phone and call for delivery lol It was nice and different type of food that was available and appreciated

@MsStarryNights 5 месяцев назад

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

@unskeptable 5 месяцев назад

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

@champslim 5 месяцев назад

Love going to this place after the bar in college.

@mascottie 2 месяца назад

9:06 Am I the only human on earth that can’t make sense of paying this much for a cookie? I’m just baffled that so many people are under the spell.

@catpoke9557 Месяц назад

Not a lot of people can bake really good cookies, so if a cookie is good enough, they will pay a lot

@dlanor15 20 дней назад

It's worth it to pay that much for a cookie, just not THOSE cookies.

@Christian_Luczejko 5 месяцев назад

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.

@margaretchayka6878 2 месяца назад

The biggest difference between all these "amazing"-level cookies is a really good marketing plan and the... dough to make it happen. Making a good cookie is really the easy part.

@kjkrop88 5 месяцев назад

Jesse, we need to cook

@oceanwonders 5 месяцев назад

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

@iamhassanelsaddique 5 месяцев назад

Love this!!!

@ChildishDanbino 10 дней назад

They’ll also deliver you back to your house from the bars if you live in the right college town

@Food4thought1234 3 месяца назад

Never heard of this. Brother took me in Atlanta after midnight. It was actually good.

@scombproductions 5 месяцев назад

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

@BruhklinNY 4 месяца назад

I absolutely love these cookies.

@tatummacbride-deaver3081 5 месяцев назад

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

@ElisaAvigayil 7 дней назад

5% of $140 million is $7 million. Math.

@Noneya5241 Месяц назад

These cookies are well worth the price The s’mores and Reese peanut butter cup are my absolute favorites

@hyperreal 20 дней назад

They look delicious, will try them next time

@notlisteningwhocares8877 Месяц назад

Omg this place is in Austin, they are so good!

@will.davlin 5 месяцев назад

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

@ogbillity 5 месяцев назад

The sugar industry has won.

@emem2863 5 месяцев назад

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

@manifestingsanctuary 2 месяца назад

Get help, sugar isnt the problem its excess dietary fat. Sweet fruits are one of the healthiest foods humans can eat; animal fats not so much when it comes to longterm health. You think pizza burgers cookies and donuts are sugars/carbs when they're loaded with fats? Try fruit, dates, sweet potatoes, oats, whole grains.

@sleep3417 5 дней назад

@@manifestingsanctuary Wrong and uninformed

@designergenes9490 5 месяцев назад

Great story and really enjoyed ❤️

@amochswohntet99 5 месяцев назад

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.

@douglassmith9445 5 месяцев назад

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 5 месяцев назад

are cookies really a billion dollar thing?

@Benjamin-The-Great 9 дней назад

@@kshitizmishra5845 They are if you market to impulsive, wealthy college students. There's a reason that advertisers seek out the younger demographics. Ain't no 45 year old spending good money for a warm cookie.

@deediva6073 17 дней назад

❤ I have a sweet tooth after 12am

@irshviralvideo 4 месяца назад

i dotn get why this is popular in the time of Uber Eats ? doesn the delivery element destroy the main differentiation factor ? what else makes this so unique ?

@Masterahsoka 15 дней назад

Only place that sells good sugar cookies

@1boi593 Месяц назад

its insane that you can get rich by selling overpriced cookies

@iec7587 18 дней назад

lots of stoned college kids

@sleep3417 5 дней назад

People love sugar

@mackintosh4784 5 месяцев назад

I am not in danger, i am the danger

@stevenmichaeleich9856 5 месяцев назад

So much better than Crumbl

@poggster6047 5 месяцев назад

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

@moisescolon4151 2 месяца назад

97.2% PURE

@itstonycia 5 месяцев назад

LET ME START SELLING COOKIES FROM MY DORM

@tammiepressley2684 Месяц назад

So awesome

@IHappyChicken 2 месяца назад

Favorite cookie shop

@flubb831 12 дней назад

I want to know what seth thought about the lawsuit

@ricodash5330 5 месяцев назад

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

@aerogruff 5 дней назад

Just microwave cookies 🍪.

@the.magic.catbus9459 5 месяцев назад

They had a food truck in my college campus!

@4.carmeljwn 3 месяца назад

I always see them when I go in cc philly. Nice to hear the story behind it. I WONDER WHY THE PARTNER RESIGNED THO😮

@TryTiffiny 3 месяца назад

I smiled during this entire video. Those cookies are delicious 😋

@ravenx054 3 месяца назад

They are struggling atm they offered teachers free 6 cookies the last 3 years for teacher appreciation week. However this year it was one cookie. Doesnt make sense even after covid the hardest year you offer that, they are going downhill.

@trayshana 5 месяцев назад

VERY inspiring

@mrartdeco 5 месяцев назад

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

@jishani1 5 месяцев назад

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

@dlanor15 20 дней назад

Mid cookies. Tried it a few times and I don't get the hype. Overpriced for unimpressive taste & quality.

@LIBRAFIGHTERAGOD 4 месяца назад

Inspiring

@mrlozmoore 5 месяцев назад

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

@Ihave10billionsubs 4 месяца назад

Well, look at Elon Musk, Jeff Bezos, etc. They could have simply stepped away years ago and enjoyed the high life without ever having to work again. But sometimes it's more about the mission than the money, even if that mission is delivering cookies until 2 a.m. 😂 Besides, there's only so much yacht cruising and traveling you can do before you get bored and want something more. It's human nature to keep improving and keep contributing. It's not in our nature to sit around doing nothing. Sorry, long winded response.