While many restaurant brands have hesitated, thinking they might cannabalize sales at the restaurant if they make their brands available at grocery, economic trends toward eating at home are setting in and suggest the need to rethink this view. You’ll hear about the success of TGIFriday, particularly in appetizers, and of Cinnabon taking its ownership stake in the cinnamon equity into many areas, including breakfast snack bars with Kelloggs, bread with Sun Maid Raisins, nuts and even cupcakes. You’ll hear about Wolfgang Puck, Jamba Juice, and Boston Market that explored and were successful with a range of products.
We describe some of the successes of our client, Rocky Mountain Chocolate Factory, which is unique in having pursued this strategy while being a franchise model. In this case, the franchisees were able to get comfortable with the strategy based on two key factors: 1) The licensor convinced franchisees that they would communicate “early and often” so that they are knowledgable at all times; and 2) The licensees were offered the chance to sell the licensed product in their stores, which would be valuable in the case, for instance, of a Rocky Mountain Chocolate Factory Hot Chocolate.