News Column

TCBY, Moxie Java Co-Branding Concept Boosts Franchisee Sales

December 18, 2002

TCBY, a leading frozen yogurt maker and franchisor, has rolled out a co-branding relationship with Boise, Idaho-based Moxie Java International, LLC, the largest licensor of coffee shops in the U.S.

According to Moxie Java, the product pairing is helping franchisees realize increased net profit in the 15% range. Adding gourmet coffee to TCBY's frozen snack and dessert menu has helped franchisees’ round out their business model leveraging existing labor and overhead.

According to the Specialty Coffee Association, the coffeehouse market is growing at double-digit rates. While espresso cafes average $300,000 in sales per year, existing franchisees are finding that coffee carts, kiosks, inline stores, and other co-branded venues allow them entrée into the growing coffeehouse marketplace.

Diana Mallard, general manager of two co-branded stores and a standalone Moxie Java cafe in Idaho, praises the co-branding concept.

"The combination maximizes sales per square foot and levels out sales throughout the day," says Mallard. "While the products sell all day long, there are times when one product sells better and carries the other a bit.'

Founded in 1988, and now comprising over 70 espresso cafes throughout the United States and three in Japan, Moxie Java has established itself as one of the fastest growing specialty coffee retail vendors -- fueled in part by an innovative licensing arrangement that allows prospective entrepreneurs to own their own espresso cart, kiosk, or cafe with minimal investment, no franchising contract, or monthly royalty fees.

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