Franchise Zone:What would make a company a desirable co-branding opportunity for you?
Sid Feltenstein: If we felt they were good operators, could execute our brand properly, would uphold our standards, had the potential to be profitable and make money-and if they were complementary day parts.
When you co-brand two concepts, as you did with A&W and KFC, what kinds of demands can you make for your restaurant?
"Demands" is probably the wrong word. It's important that the brand is portrayed properly, both on the exterior and interior of the store. You want equal signage and to have your brand image in terms of furniture, decor package and point-of-sale materials. You don't want this to look like a line extension; you want it to look like two equal brands under one roof. The consumer needs to believe this is the true representation of the brand, not just a new product, so you have to be willing to split the signage 50-50 on the exterior, to really display the brand, and preserve each brand's clarity on the interior to be sure the consumer sees it that way. That's very important to us.
What advice would you give to entrepreneurs who've been approached by somebody to co-brand? What kinds of things should they be looking for?
You have to make sure the company [approaching you] is willing to make the appropriate investment in its facility to represent the brand properly. Also, make sure it's a company with a history of operating its businesses well. And look for a philosophical compatibility between the management of both companies, because you have to work very closely, so you have to believe in the same things and get along.
What if somebody was looking for a company to bring in, as opposed to being matched up with somebody else?
Same thing. You want to be sure you're philosophically in sync in terms of how you approach the business. See whether the company you're bringing in has a lot of consumer awareness, complements what you're doing and can add value to your brand.
How does a company judge whether a co-branding relationship has been successful?
If it's profitable. In our case, we consider ourselves successful when we're making money from the investment, and, if we franchise our brand to someone else, that they're making money as well.
Yorkshire Global Restaurants