In late July, Famous Brands Intl., parent of TCBY Yogurt and Mrs. Fields Cookies, announced it is taking its new dual-brand concept to the Los Angeles market.
The co-branding is the crux of the company's strategy to reverse several years of declining sales and store closures. By joining both brands in a single footprint it hopes to increase its year-round appeal to consumers and its financial appeal to franchisees. Those who've tested the co-branded concept reportedly have seen revenues double.
Under new (in 2014) ownership by Z Capital Partners, Famous Brands has launched an expansion drive headlined by the dual-branded concept. Its COO David Bloom has noted that new-store openings have almost doubled this year over last year, and that 80 percent of that growth is from co-branded units. In addition to Los Angeles, the Phoenix/Scottsdale market will see aggressive development of the dual-concept stores, which on average run 1,200 to 1,600 square feet.
To help meet its growth targets, the company has sweetened the deal with a BOGO for franchisees: It offers a free Mrs. Fields with the purchase of a TCBY franchise. It also touts franchisee access to three revenue streams for one franchise fee: TCBY, Mrs. Fields Bakery and Mrs. Fields Gifting Stations, which are a new retail/e-commerce kiosk feature included in the stores.