KRISPY Kreme has sold much of its business to an ambitious buyer.
The donut chain sold Insomnia Cookies, which is now looking to make some changes.
The brand is now owned by two companies looking to expand, according to Nation’s Restaurant News.
Verlinvest and Mistral Equity Partners bought a majority stake in the brand for US$172.4 million in July.
Now, companies intend to open hundreds of new stores.
Its ultimate goal is to operate 1,800 locations – a significantly larger number than what is open now.
As of spring 2023, the chain has 235 bakeries across the country.
MULTIPLY BY SIX
The new owners hope to have more than six times the current number of bakeries in operation, although it is unclear when that number could be reached.
The chain is known for its hot baked goods and late-night deliveries that make it popular in cities and near college campuses.
Seth Berkowitz, founder and CEO of the company, says that despite the competition, Insomnia is unique.
“I’ve seen 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 unique and enduring is the community. It’s a craveable late-night dessert that arrives at your door incredibly quickly.
“I don’t like to talk bad about the rest of the industry, but [others] They are high in calories and look more like a cupcake in my head than a classic chocolate chip cookie.
Insomnia has faced increasing competition from brands like Crumbl and Chip City in recent years.
Berkowitz added that the company is committed to classic flavors.
This differentiates them from Crumbl, which changes its menu weekly.
This, 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
COOKIE DOESN’T DESTROY
Despite the recent change of ownership, the company is moving forward with expansion plans.
The chain is actively planning to open a new location in Hartford, Connecticut, according to Hartford Business Journal.
This is in line with the company’s long-standing strategy of attracting college students – the University of Connecticut is planning to open new student housing nearby.
Crumbl saw controversy over a promotion that a smaller company says “went after” small businesses.
Crumbl has closed several locations this year.
This story originally appeared on The-sun.com read the full story
