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How Insomnia Cookies Became A $350 Million Business — By Obsessing Over One Word

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To build a great brand, you must own a great concept. It’s that simple, clear, desirable thing consumers want or crave. McDonald’s owns “fast.” Volvo owns “safe.” FedEx owns “overnight.”

Insomnia Cookies owns “warm.”

It sounds simple, but it’s not. Seth Berkowitz, CEO and founder of the cookie chain, has spent 23 years learning this: To truly own a concept, you must do more than just claim it. You must commit to it, engineer your entire operation around delivering it, and protect it as you scale.

“The founding craving was something warm and delicious,” Berkowitz explains. “And every decision I’ve made up was in service of that craving. There wasn’t a single compromise.”

That level of commitment has built Insomnia Cookies from a college dorm room operation into a national chain with 350 stores, 6,000 employees, and a $350 million valuation (established in 2024, when Krispy Kreme sold its majority stake in the business).

But the real lesson isn’t about cookies — it’s about what happens when you pick one differentiator and refuse to compromise on it, no matter how complicated or expensive that becomes.

Here’s what Berkowitz learned about building a brand around a single, non-negotiable promise.

Start With a Real Consumer Insight

Berkowitz didn’t choose “warm” because it tested well in focus groups. He chose it because he experienced the need firsthand — and recognized its deeper emotional significance.

The insight came during a late night in his college house in 2002. He and his friends ordered a lot of pizza, which arrived warm and appetizing — but he couldn’t think of a way to order something sweet that delivered that same emotional payoff.

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