The Case against Multibranding Strategy

Abstract

While it may appear to be a good idea on the surface, restaurant cobranding raises potential problems in three areas. First, cobranding may cannibalize both sales and image of one brand with the addition of another brand in the same restaurant space. Second, cobranding may cause operational confusion, because managers and employees will have to learn two different operating systems. Third, cobranding may increase costs because of the need to train employees in two systems. As an additional point, cobranding may also confuse consumers with regard to what a restaurant is offering.