Insomnia Cookies leverages AI to enhance customer loyalty

A fast-growing late-night bakery concept seeks to elevate overall customer engagement with help from artificial intelligence (AI).

Insomnia Cookies, a cult brand known for serving warm cookies all day and late into the night, is deploying the Par Technology Punchh loyalty, offers and engagement platform across its network of more than 250 stores in the U.S. The Punchh solution leverages AI to provide a self-learning process designed to nurture and grow a restaurant’s customer base. 

With this move, Insomnia Cookies intends to fortify customer connections, increase frequency, and maximize spend throughout its store network.

“At the core of Insomnia lies a commitment to originality and innovation. Collaborating with PAR Punchh allows us to not only enhance our digital experience but also gives insomniacs more reasons to connect with our brand and indulge in the sweet moments we create” said Tom Carusona, chief marketing officer of Insomnia Cookies. "With Punchh's cutting-edge loyalty platform, we're excited to evolve our customer experience, reward our loyal Insomniacs, and provide an even more enjoyable journey for those who crave our warm, delicious creations. Together, we're raising the bar, ensuring every sweet moment is a delightful experience for our valued customers." 

"At Par, we believe in empowering brands to forge meaningful connections with their customers. Our commitment to providing cutting-edge solutions that drive customer loyalty and engagement is exemplified through our collaboration with Insomnia Cookies,” said Savneet Singh, CEO of Par Technology. “By leveraging the power of Punchh and our team of experts, Insomnia Cookies is poised to take its customer experience to new heights, creating lasting connections and driving business success." 

Insomnia Cookies is overhauling the technology supporting its loyalty program as it undergoes a period of aggressive growth and majority owner Krispy Kreme considers selling its stake in the company to focus on its core doughnut business. Krispy Kreme, which acquired majority ownership in 2018, said in October 2023 it is exploring strategic alternatives for Insomnia Cookies, including considering an all-cash sale.

Insomnia Cookies has rapidly grown since the 2018 acquisition and was expected to generate revenues of approximately $230 million in fiscal year 2023. Forty-five percent of its revenue is generated digitally.

Headquartered in Philadelphia and founded in a University of Pennsylvania dorm room in 2003, Insomnia Cookies operates more than 250 locations nationwide and is also expanding its footprint in Canada and the U.K.