Donald Thompson
The controversy went on for several years-in the event you implement a current branded foodservice program or are you currently best working on your own unique proprietary brand? The solution to both is absolutely! There’s no wrong or right answer as have their benefits and drawbacks. Branded foodservice provides the quickest road to implementation since production processes and consumer recognition happen to be established. Proprietary brands, however, usually take more time to apply, but could become more lucrative and nearly impossible for the competition to imitate.
Since branded and proprietary foodservice each present their very own possibilities in addition to challenges, here is a useful overview that will help you determine which kind of foodservice program is the best for both you and your store operation.
Branded Foodservice
Proprietary Foodservice
Advantages
Product Recognition. Ramp-from consumer awareness of the trademark is minimal.
Confidence. Trust has already been established for that brand within the minds from the consumer.
Consistency/Quality. Some time and investment have been in existence within the brand already.
Brand Support. Most branded foodservice companies supply you training & marketing.
You are in charge. As who owns the company, you identify your brand’s path.
Competitive Differentiation. It’s your logo and you competition cannot utilize it.
Product Financial Savings. In some instances, it can save you substantial product costs by getting your personal proprietary brand.
More Mystique. Your personal brand is capable of a greater acceptance level when performed well.
Disadvantages
One-Size-Fits-All. Branded companies are curious about their brand first, your store second.
Greater Costs. Price of goods marketing promotions, licensing or franchise charges all erode your income.
Insufficient Control. You’re purchasing a branded concept – the branded company sets the guidelines regarding how to use its brand.
Geography. Branded concepts like share of the market and error along the side of overdevelopment.
Additional Time-Consuming. You have to manage every facet of your brand, from procurement to retail purchase.
Organization Challenges. Training, logistics, operations and marketing all need to be in perfect sync.
You are Second Fiddle. The large foodservice brands command the interest of suppliers and consumers.
More Income. It’s your nickel: every idea, best of luck, every marketing piece is compensated on your part.
