Co-Branding Approaches in the Franchised Food Service Industry
2000; University of South Florida St. Petersburg; Volume: 12; Issue: 2 Linguagem: Inglês
ISSN
1042-6337
AutoresJoyce A. Young, Robert Green, Audhesh K. Paswan,
Tópico(s)Franchising Strategies and Performance
ResumoABSTRACT properties of co-branding as a new franchising format are relatively unknown and many questions remain concerning long-term viability of such ventures. This paper attempts to document some of these properties by developing a framework that describes underlying assumptions of multiple branding, categorizes co-branding methods, and identifies potential issues for collaboration between co-branding partners. INTRODUCTION Competition in food service industry is increasing as more restaurants enter into market. Reaching target market successfully has become a greater challenge. One way to combat this problem has been franchising. Franchising has allowed many restaurants to expand their reach to target market with less costs. Up to this point, most franchises have been located in stand-alone restaurants where they are not associated with another business. However, as stand-alone franchising becomes saturated in many markets, other concepts for market penetration have been evaluated. One such form rapidly emerging is co-branding which we define for purpose of current paper as the pairing of two or more recognized brands within one space (Boone, 1997, p. 34). According to Ellen Shubart (2000, p. 24), co-branding columnist for Franchise Times, No one is keeping tabs on precise numbers, but growth in co-branded franchises appears to be higher than growth in franchising alone. Co-branding relationships are very prevalent in restaurant industry. One recent estimation indicates that twenty percent of all food franchises are co-branded units (Shubart, 1999c). Some examples include Dunkin' Donuts with Baskin Robbins, Seattle's Best Coffee with Cinnabon, Manhatten Bagel with Jreck Subs, and Green Burrito with Carl's Jr. The idea behind co-branding is that several brands can command more power through customer awareness and traffic than can a single brand-name operation (Boone, 1997, p. 34). In addition, retail sites that were previously passed over because they were too large for a single brand are now feasible with co-branded offerings. Food service franchisors are co-branding with non-food industries as well. Based on a recent study conducted by Journal of Petroleum Marketing, sixty percent of petroleum marketers participating in survey were involved in co-brand agreements with fast-food operators (Killeen, 1997). Ice Cream Churn® asserts that it is original co-brander offering franchises to convenience store and service station industries for over twenty years (http://www.icecream.com). Co-branding relationships between food service franchisors and hospitality industry are increasing also. Marriott with Pizza Hut, Best Western and Country Kitchen, and Holiday Inn with T.G.I. Friday's are frequently cited examples of such partnerships (Boone, 1997). Though co-branding among franchisors continues to garner increasing popularity in trade and ever-expanding coverage in trade-journal articles, academic community's examination of this franchising phenomenon is limited. Recent efforts by Strate and Rappole (1997) and Boone (1997) to document such activities in hospitality industry, as well as exploratory efforts by Young and colleagues (Young et al., 1997; Young, Hoggart, & Paswan, 1999) involving fast food franchisors represent discipline's initial attempts to initiate a new stream of research. properties of co-branding as a new franchising format are relatively unknown and many questions remain concerning long-term viability of such ventures. For example, co-branding relationship between Jack In Box and Ravioli's failed within just five months during testing phase (Sullivan, 1997). revenue generated by venture was not sufficient to justify investment for Jack In Box units. Zu Zu's and Arby's co-branding effort disintegrated into a lawsuit by Zu Zu's against Arby's that sought millions of dollars in damages involving stolen trade secrets. …
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