Why Insomnia Cookies chose Kingston for its second Canadian branch

Initially a US college start-up, Insomnia is now taking on Canada’s ‘best’ university town
Insomnia Cookies recently opened Kingston.

The American chain Insomnia Cookies opened its second Canadian location in Kingston, a testament to the city’s awakening business atmosphere. But some experts warn the sugar rush might wear off after a while.

Since its humble inception in a dorm room at the University of Pennsylvania, Insomnia Cookies has grown exponentially, opening 265 stores over two decades. A subsidiary of Krispy Kreme (DNUT), Insomnia released its plans to expand into the Greater Toronto Area (GTA) in Canada and Manchester, UK last February.

After seeing success at York University in the GTA, Insomnia had its Grand Opening in Kingston on Feb. 10. Hundreds of cookie lovers stood lined up around the block to snatch a free goody. Many were students.

“I think the university will be their mainstay for sure,” Susan Bartholomew, a teaching fellow of international business at the Smith School of Business said in an interview with The Journal.

Located near the student housing district, downtown bars, and off-campus student accommodation buildings like Unity Point, Insomnia can tap into late night cravings from students on the way home or after partying, Bartholomew said. Because of these factors, Kingston was anointed Canada’s best university town last March in a HelloSafe report.

With its many hospitals, the city is also home to a large population of shift workers, many of which take to nocturnal schedules.

“Kingston has the benefits of being a mid-size market,” she said. “It’s got enough size that there’s going to be some sort of scale returns on the investment of entering, but the intensity of competition isn’t going to be as big as a larger city like Toronto or Vancouver.”

Bartholomew said Kingston’s international student and tourist presence makes it an ideal place for the company to learn, similar to what informed Starbucks’ expansion into Japan.

“Starbucks was a very popular destination stop on Japanese tour buses. It gave them a little bit of insight and confidence that there would be some brand connection or popularity, should they go to Japan,” she said.

But the novelty of a cookie store with a high price point might wear off, Bartholomew warned. She likened it to an ice cream parlour, where frequency and regularity of purchases tend to dwindle when companies focus on treat items.

Still, compared to Toronto or Vancouver, there are less places to spend your money in Kingston—and that could work in Insomnia’s favour.

“We’ve seen a pretty good tolerance for Starbucks’ price point in this town on a pretty regular basis. That shows a certain willingness to spend, to get the product or possibly the brand,” Bartholomew said.

Kingston faces similar economic challenges to other cities across Canada, according to Shelley Hirstwood, director of business development at Invest Kingston.

Post-pandemic inflationary pressures, high interest rates, and slowing consumer spending aren’t unique. What is unique is the city’s ability to be a “testbed” for various markets, due to large, concentrated sectors in the town—like manufacturing and military.

Tags

Business, Enfranchisement, Kingston

All final editorial decisions are made by the Editor(s)-in-Chief and/or the Managing Editor. Authors should not be contacted, targeted, or harassed under any circumstances. If you have any grievances with this article, please direct your comments to journal_editors@ams.queensu.ca.

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to content