CEO of cookie chain once owned by Krispy Kreme aims for 1.8k stores – plans to ‘simplify’ menu while keeping ‘classics’

KRISPY Kreme has sold off a large portion of its business to an ambitious buyer.

The donut chain sold off Insomnia Cookies, which now aims to make some changes.

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The brand is now under the ownership of two companies eyeing expansion, according to Nation’s Restaurant News .

Verlinvest and Mistral Equity Partners bought a majority stake in the brand for $172.4 million in July.

Now, the companies are looking to open hundreds of new stores.

Its goal is to operate 1,800 locations — significantly more than are open now.

As of spring 2023, the chain had 235 bakeries nationwide.

MULTIPLY BY SIX

The new owners hope to have more than six times the current number of bakeries running, though it’s unclear when that number may be reached.

The chain is known for its warm baked goods and late-night delivery, making it popular in cities and near college campuses.

Seth Berkowitz, the company’s founder and CEO, says that despite competition, Insomnia is unique.

“I’ve watched so many indulgence brands come and go over the last 20 years, from frozen yogurt to cupcakes and other dessert fads,” Berkowitz told NRN. “What makes Insomnia both unique and enduring is the community. It’s a late-night craveable dessert that’s delivered to your door incredibly quickly.

“I don’t like to speak poorly of the rest of the industry, but [others] are heavily caloric, and they feel more like a cupcake in my head than that classic chocolate chip cookie.”

Insomnia has faced increasing competition from brands like Crumbl and Chip City in recent years.

Berkowitz added that the company leans on classic flavors.

That differentiates them from Crumbl, which rotates its menu weekly.

That, he told NRN, influences the company’s strategy.

“We want to simplify our menu but accentuate and create some really strong [limited time offers],” he said.

I’ve watched so many indulgence brands come and go over the last 20 years, from frozen yogurt to cupcakes and other dessert fads.”

Seth Berkowitz CEO of Insomnia Cookies

COOKIE DOESN’T CRUMBLE

Despite the recent change of ownership, the company is moving ahead with expansion plans.

The chain is actively planning to open a new location in Hartford, Connecticut , according to Hartford Business Journal .

That’s in keeping with the company’s longstanding strategy of appealing to college students — the University of Connecticut is planning on opening new student housing nearby.

Crumbl has seen controversy over a promotion that one smaller company says “went after” small businesses.

Crumbl shut several locations this year.