Insomnia Cookies will hold a grand opening for its new flagship store in Center City this weekend, beckoning passersby into a Willy Wonka-esque paradise at the corner of Broad and Chestnut streets.
The store, which had a soft opening last month, is Insomnia's largest yet, occupying the first floor of the company's new three-story headquarters. Cookie lovers can get the brand's usual assortment of baked treats, cookie-style nachos and pizza, ice cream flavors and coffee. They even can customize their own cookie toppings.
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But what sets the new store apart is its bright and bubbly atmosphere, including a seating area that faces a wall of LED lights paying homage to Insomnia's Philadelphia roots. A merchandise section is stocked with "Philadoughphia" apparel and other goodies near the checkout line, where customers will marinate in the sweet aroma that fills the building.
Insomnia Cookies has been on a rapid growth trajectory in recent years. It now boasts more than 270 U.S. locations, and has added stores in Canada and the United Kingdom.
The brand has come a long way since 2003, when founder and CEO Seth Berkowitz hatched the idea of a late-night cookie delivery service while he was a student at the University of Pennsylvania. Insomnia's business model was originally built around opening bakeries near college campuses, but has since evolved alongside the company's expansion. Colleges remain the core, but the growing store count reflects a mix of delivery and in-store sales.
"We try to follow our customers as they grow up," Tom Carusona, Insomnia's chief marketing officer, said during a tour of the headquarters Thursday. "You graduate from Penn State and move to Manayunk, so there's a store there now. Locations where you have Gen Z living and late-night districts clearly connect with our brand."
About 100 employees are working out of the 26,000-square-foot Insomnia headquarters, whose upper floors include offices and bakery space. The second floor is for the company's "cookievation" team of food scientists and consumer trends experts, who experiment with new flavors and product ideas, while the third floor is focused on market insights and innovation at Insomnia's bakeries. The three-story space previously housed a Walgreen's.
The biggest shift for the Insomnia employees that work at its headquarters is the company's adoption of a four-day, in-person work week from Monday through Thursday. The office has a large open space called the quad where employees can gather for collaborative work and presentations.
"Our brand is hands-on. It's a brand you have to touch, and taste, and feel and smell," Carusona said. "It's important for us to have our employees here. One of the things I think that has really worked is just being more efficient with meetings. Do you need an hour, or can you do half an hour or 15 minutes. Or, can you walk over to someone's desk. I think people really enjoy the luxury time on Fridays."
Maybe the extra day off is just enough time away to avoid becoming nose blind to the all the treats.
"I eat way too many cookies," Carusona said. "But the nice thing I've experienced in the last few weeks of being here is my step count has gone through the roof. I'm just up and moving way more."
Krispy Kreme, which has held a majority stake in Insomnia Cookies since 2018, announced last fall that it plans to sell off its share of the company. The two brands have continued operating as independent, standalone businesses as part of their agreement, and the change in direction hasn't changed Insomnia's expansion plans. Last year, the company said it aims to open 600 U.S. locations by 2027, with a goal to be accessible to 90% of households.
"We have really big plans," Carusona said. "We're going to open more than 70 U.S. stores this year, which is way more than we've ever done before."
The company also is beginning to explore new areas of marketing. A partnership with the makers of the "Final Fantasy" video game franchise will feature characters with branded products on Insomnia's cookie boxes.
The new headquarters marks a major step in the company's evolution, one that's focused as much on growth as it is maintaining its connection to Philly.
"This location checked every box when it became available," Carusona said of the headquarters. "It's a marquee destination and retail space in Center City."
Saturday's grand opening runs from 8 p.m. to 3 a.m., with one free cookie available to people who visit the party. There will be a DJ, a prize wheel and giveaways including tickets to an upcoming Flyers game. The company also will donate 15% of each in-store sale to local food bank Philabundance. Those who live in the city and place orders online can get free delivery with the code PHILADOUGHPHIA.