Will Co-Branding Work for Fast Casuals?

Yes, absolutely. But as this article by FastCasual.com points out, not all brands play well with each other.

The article does a great job of listing the difficult questions operators must ask themselves when deciding whether you should co-brand a location.

  • Am I comfortable with employees being cross-trained?
  • Am I comfortable with potentially sharing revenue streams?
  • Do I really need two concepts under the same roof?
  • How will my brand benefit?
  • What negative effects will it have on my brand?
  • How is my brand perceived in comparison with the brand I am cobranding with?
  • How will my core consumer base react to this cobranding?
  • What is the cost benefit analysis on customer acquisition?
  • How will marketing efforts be affected?
  • How are joint decisions going to be made between the two separate corporate entities?
  • How will vendor relationships be affected?
  • And how will my internal employee culture be affected?

A big reason why our “FatBuffs” (Fatburger – Buffalo’s Cafe co-brands) work so well, is that they both belong to the same parent company. This allows us tremendous flexibility to create a situation where both brands benefit from the efficiency that is possible in a co-branded location. And when you achieve that efficiency between the brands, you build profit. On average, we see around a +25% profit margin in our co-branded locations.