Nestle Toll House Cafe by Chip and Red Mango are teaming up to offer current and prospective franchisees a co-branded development option. Ziad Dalal, co-founder of Nestle Toll House Cafe by Chip and CEO of Crest Food, told QSR Magazine he felt his brand and Red Mango’s culture were similar and could work well together.
We both felt that our brand and their brand could be a great fit. One is more about indulging on the Nestlé Toll House Café side, and Red Mango is more of a healthier alternative,” he said. “It’s a great, great opportunity for franchise partners to capitalize on their investments, and it’s a great offering for the customer to have these two offerings side by side.”
Running two different brands in a co-branded store can present a number of challenges. Resources and finances have to be split between the two brands and each brand’s employees will have to be trained for the other one. It’s a lot to take on and Nestle and Red Mango will be cutting some of the fees for franchisees that look to take on a co-branded store. Dalal said he understands there may be some growing pains at first for this endeavor, but he said the training will be encompassing and thorough for all the workers.
“The two brands require the same discipline so really you’re talking about the same franchisee being able to execute on both sides,” Dalal said “We will both conduct training, but it’s not duplicated.”