Co-Branding: An Anonymous Interview
In this segment, a former senior executive discussed the nationwide pairing of the two brands, Tim Hortons and Cold Stone Creamery. Though these might seem like completely different companies and products at first, upon closer inspection, we’ll see that Cold Stone Creamery and Tim Horton’s was truly a business match made in heaven.
Why Cold Stone Creamery Was Selected
Tim Hortons, a Canadian coffee chain, had been doing very well in the United States and was looking for ways to complement its typical coffee-shop business rushes. As is usual for this type of ‘fast-food’ chain, the highest business was in the morning and afternoon hours. Conversely, ice-cream shops typically do most of their business around dinner time. In this sense, the pair is a match made in business heaven.
The Biggest Factors for Success
“The operator’s viewpoint can predict the future”
According to this senior executive, who wished to remain nameless, the single most important factor in a co-brand’s success was how the site’s supervisor viewed the entire process. This just goes to show how much influence an operator has on his crew and their dedication to the brand themselves. A negative workplace will be difficult to steer in the right direction without a committed leadership figurehead on site.
“You need permission from your guests to ‘expand your fences’”
With customers as loyal as those Tim Hortons has, it could have been a risky move to add a partner brand into some physical locations. Co-branding locations were selected on a case-by-case basis, according to what kind of customers each location served daily; for example, a Tim Hortons location that was frequented mainly by coffee and donut regulars was unlikely to see the addition of the Cold Stone Brand.
In fact, few stores in Canada ever saw the addition of a Cold Stone Creamery menu. According to the majority of operators in the country, “the price points for the ice cream were seen as premium, whereas Tim Hortons was well-known by its guests for its ‘everyday value.’” – Former Tim Hortons Senior Executive
“Focus on integration”
The goal of a co-brand isn’t to simply have two businesses share the same space; anyone can select two companies and combine their locations into one building. There is much more work to be done that can be imagined – training staff, getting them and the operator on board, providing a clear sense of direction, modifying menus, marketing, and more.
“This is not just two separate businesses sharing the same space.”
Getting two different companies to meld together at one counter is a difficult integration to make, even with the employees in agreement. For example, the stores in Canada that attempted a Cold Stone Creamery partnership ended in failure. According to the Ex-Senior Executive, “…there wasn’t an integration that took place. Operating like an ‘adjunct business’ didn’t create the expected synergies or financial success overall.” Never try to force a situation, they certainly can’t all be a business match made in heaven. But don’t give up. Just keep looking for an opportunity that better aligns with your needs and offerings.
Success in the United States
All things considered, the co-brand of Tim Hortons and Cold Stone Creamery was a huge success in the states, namely because of the cooperation between corporate management and site owners. In fact, “the double brands with the addition of Cold Stone Creamery extended the day-parts and increased sales by 10 to 20 percent in the average unit when added to the business in the United States. It was a great idea and a great concept.”
Check out these articles for more information on the Tim Hortons/Cold Stone Creamery partnership:
- Tim Hortons and Cold Stone Creamery announce three New York City sites for co-branded test locations
- Co-Branded For Life: Cold Stone Creamery And Tim Hortons
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