'I'm Literally Peddling Cookies At 2 A.M.' – How This CEO Turned $200M Revenue From A College Side Hustle Gone South

Seth Berkowitz, 43, wasn't always the CEO of a $200 million cookie empire. There was a time when he questioned if his late-night bakery business, Insomnia Cookies, would survive. 

Exhausted and alone on the road at 2 a.m., peddling dough to his scattered storefronts, he wondered if it was time to throw in the towel. That was until his wife, Rebecca, gave him the pep talk to turn his despair into determination.

Don't Miss:

• The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share!

Today, Insomnia Cookies is a cult favorite with more than 260 locations worldwide, known for delivering warm, gooey cookies right to your door. But back in 2010, Berkowitz's business was on life support. 

According to documents reviewed by CNBC Make It, Insomnia brought in over $200 million last year. However, the road to success was anything but easy.

Berkowitz launched Insomnia Cookies in 2002 from his dorm room at the University of Pennsylvania. The idea was simple but genius: cater to students' midnight snack cravings with freshly baked cookies delivered to their doorsteps. The concept quickly gained a following, but scaling the business was a different story altogether. 

See Also: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

Profitability remained elusive for nearly a decade and the 2008 financial crisis didn't help. Small businesses across the U.S. were closing at alarming rates, with data from the Bureau of Labor Statistics showing that 65% of startups fail within their first 10 years. Berkowitz was determined not to become part of that statistic.

This meant Berkowitz was the CEO, delivery guy, equipment repairman and dough transporter. "I'm literally peddling cookies throughout the country at like 2 o'clock in the morning," he recalls. Weekly trips to Syracuse, New York and Philadelphia became his norm. The long hours and endless responsibilities were brutal.

It all came to a head during a three-hour drive from Chicago's O'Hare Airport to a store in Champaign, Illinois. The desolate highway reflected Berkowitz's mood as he called Rebecca, questioning whether he had what it took to keep Insomnia Cookies alive. "How did I get here?" he asked her.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Rebecca's response was as sweet as the cookies they sold. "You believe in this. You've always believed in this. People love what you sell and I believe in you," she said. Those words changed everything. "She kind of flipped me back to being a believer," Berkowitz says.

With renewed resolve, Berkowitz simplified the business model. Gone were the vending trucks and licensing experiments; instead, he doubled down on brick-and-mortar stores with fast delivery. The strategy clicked. By 2012, Insomnia was funding new stores with its profits, a major turning point.

According to SEC filings, Krispy Kreme acquired a 74.5% stake in Insomnia Cookies in 2018 for approximately $139.5 million. "It's a perseverance story," says Berkowitz, reflecting on how Insomnia Cookies overcame its toughest days to build the brand's success.

Read Next:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest TODAY for just $0.26/share with a $1000 minimum.
• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.