Multibranding Strategy: The Case of Yum! Brands

Abstract

A case analysis examines the Yum! Brands strategy of cobranding. Yum! Brands may be the most aggressive of all restaurant franchisors in combining multiple concepts in one location. Intended to boost sales per unit, the cobranding strategy allows Yum! to locate restaurants in locations that might not support a single concept by increasing the traffic and sales at a particular location. So far, the chief downside of the strategy is potential complexity in operating differing brands in one restaurant. On balance, however, the strategy has allowed Yum! to expand its brands both in terms of number of restaurants and in terms of systemwide sales. Yum! is extending its cobranding experiment to combine its Pizza Hut concept with that of Pasta Bravo, a separate firm’s casual pasta restaurant.