🍪 From College Cravings to Cookie Empire

In 2002, a UPenn student started a side hustle with just $150. That business now brings in over $200M a year…

What did he sell? 

Cookies.

Today, Insomnia Cookies is a staple in college towns with over 260 locations worldwide.

But how did one college student start a multimillion-dollar business? What makes Insomnia stand out from competitors like Crumbl? And what can you learn from Insomnia’s success? 

Here’s what we got for ya:

• 🧑‍🍳 The Secret Recipe for Growth

• 🤝 Customer Loyalty

• 📱The Power of Marketing

Read Time: 4 min 43 sec

🧑‍🍳 The Secret Recipe for Growth

It all began on a cold, snowy night in 2002. Seth Berkowitz was a sophomore in college, living in a house with some friends. 

They had a routine. They would stay up late playing video games, and then order pizza. 

Late one night, after Seth opened the door to another Papa John's delivery guy, he decided he’d had enough. Why was it always pizza? Couldn’t they order something sweet? Imagine if you could deliver warm, freshly baked cookies straight to your home…

If Seth was craving warm cookies at 1 AM, he realized he probably wasn’t the only one. 

So he invested $150 into baking supplies and started experimenting with recipes. It started off as a one-man-shop. He handed out the flyers, sold door-to-door, and baked everything himself. 

At first, he was getting three orders a night, but after making the front page of the student newspaper, he started averaging 80 a night. By the end of his first semester, Seth made a $10,000 profit.

Seth’s success wasn’t luck. Insomnia Cookies catered to late-night cravings, a big market in college towns. While most cookie shops close by sundown, Insomnia stays open until 3 AM for students and night owls.

By the end of his senior year, Seth made a website for people to place orders and expanded to 3 other colleges in Pennsylvania. 

A week before graduating, Seth signed the lease to his very first in-person Insomnia Cookies store in Syracuse, NY. He invested all the money he made back into the business and raised funds from angel investors. 

Seth's advice to other college students looking to start a side hustle is just "do it."  That’s exactly what Seth did. He didn’t waste his time telling himself he could never be successful. 

Now Insomnia Cookies has over 260 locations in the US, Canada, and the UK.

Let’s look at what keeps customers coming back for more. 

More on this:

• Seth Berkowitz's advice to young college students 

🦾 Master AI & ChatGPT for FREE in just 3 hours 🤯

1 Million+ people have attended, and are RAVING about this AI Workshop.
Don’t believe us? Attend it for free and see it for yourself.

Save your spot here. (100 free spots only)

Highly Recommended: 🚀

Join this 3-hour Power-Packed Masterclass worth $399 for absolutely free and learn 20+ AI tools to become 10x better & faster at what you do

👉Save your seat  now (FREE for First 100)

🗓️ Tomorrow | ⏱️ 10 AM EST

In this Masterclass, you’ll learn how to:

🚀 Do quick excel analysis & make AI-powered PPTs 
🚀 Build your own personal AI assistant to save 10+ hours
🚀 Become an expert at prompting & learn 20+ AI tools
🚀 Research faster & make your life a lot simpler & more…

👉 Register here (Offer valid for First 100 people only)🎁

🤝 Customer Loyalty

Insomnia Cookies doesn’t just lure in customers with its nostalgic homemade taste. It builds a repertoire with the community. 

Here’s how they do it:

#1- Infiltrating college campuses: I found myself on three different college campuses this year, and every single one had Insomnia Cookies next to campus. (The last time I took it as a sign and picked up a double chocolate chunk…) 

Whether it's offering late-night stress relief cookies during finals or handing out free treats during graduation, Insomnia has made itself an integral part of student life. 

I remember when I was a student at UNC-Chapel Hill, Insomnia Cookies donated 200 cookies for my club’s fundraiser. Insomnia’s partnerships with universities and local events build a strong connection with the community. 

#2 - The CookieMagic Membership: For $9.99/month, members get a free cookie every day, free delivery, and exclusive deals. Customers are drawn to the psychological appeal of getting something “free” while Insomnia Cookies benefits by maintaining consistent engagement with customers.

#3 - Trust the classics: Crumbl became popular with their rotating weekly menu. Insomnia took a different route, creating trust in their customers by consistently stocking fan favorites. So if you know you love Snickerdoodles, you can rest assured you will always leave Insomnia satisfied.

Insomnia Cookies’ strategic locations do a good job marketing the company. But how else do they get customer traffic?

More on this: 

• 🦄 From Side Hustle To Unicorn: Crumbl's Success Story

📱The Power of Marketing

How did Insomnia Cookies turn a late-night cookie run into a sweet treat staple?

Insomnia markets its cookies two different ways: 

#1- Grassroots marketing: Insomnia’s campus presence, partnerships with local events, and word-of-mouth play a big role in their marketing.

#2- Social Media: Insomnia’s online marketing targets young people who are always online and love to share their experiences. 

The posts are engaging, like this one:

Insomnia also posts TikToks that get people excited about limited-edition flavors and promotions. 

@insomniacookies

just one for me, thanks!

Never underestimate the power of FOMO, or the fear of missing out. By sticking the words limited edition on anything, you instantly create a sense of urgency and excitement. Seasonal flavors like pumpkin spice in the fall or red velvet around Valentine’s Day keep customers coming back to try what’s new.