Restaurants Embrace Brand Licensing

California Pizza Kitchen, Dunkin’ Donuts and TGI Fridays have expanded into grocery store products.

June 13, 2017

LOS ANGELES – How do you add to your bottom line significantly without opening more locations? Some restaurants have discovered that putting branded products on grocery store shelves has brought in a new revenue stream and boosted the name recognition too, Nation’s Restaurant News reports. Restaurants have long conspired about how to bring in more customers more often, but some chains have flipped that equation by thinking instead about how to get their food in front of customers.

“Brands that diversify their touchpoints do better than brands that limit themselves to a single source of cash. Specifically, by putting your food in front of consumers where they are, rather than where you want them to be, you can multiply market share and boost profits, without the hassle of creating a new customer or splurging on R&D,” wrote Jeff Lotman, founder and CEO of Global Icons, in a Nation’s Restaurant News column.

Lotman highlighted three restaurants—TGI Fridays, California Pizza Kitchen and Dunkin’Donuts—that have embraced brand licensing and grabbed more share of the stomach through grocery store products. TGI Fridays pioneered branded products at supermarkets. While its restaurants attract twentysomethings, in the grocery store, it’s a different demographic (moms in the 35- to 45-year-old bracket). The chain now sells $400 million annually in retail sales.

California Pizza Kitchen (CPK) jumped into the frozen pizza category 20 years ago, and now accounts for nearly 13% of the market share. CPK brings in $150 million in annual retail sales through licensing agreements with Kraft and Nestlé.

Over at Dunkin’ Donuts, coffee packaged for retail sales in supermarkets has brought the chain into areas of the country without a location. Now in addition to bagged coffee, the chain sells branded coffee creamer, Keurig K-Cups and ready-to-drink iced coffee.

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