How Wetzel’s, Cold Stone use co-branding to entice diners
Kahala Brands accelerates growth with 17 new Wetzel’s and Cold Stone co-branded units across several states.
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Kahala Brands, after acquiring Wetzel’s Pretzels, has introduced a co-branding initiative with Cold Stone, aiming for at least 17 new locations this year in various states. This strategy is expected to enhance brand awareness and accessibility, leveraging both brands’ strengths in different venue types.
Why It Matters
This strategy may create new territory opportunities for franchisees and increase unit-level sales by tapping into diverse customer segments.
MTY Group’s Wetzel’s Pretzels, through its subsidiary Kahala Brands, is embarking on a notable expansion through a co-branding strategy with Cold Stone Creamery. This initiative comes as Wetzel’s recently celebrated the opening of its 500th unit in California, with a focus on enhancing brand visibility and growth potential. Kahala plans to introduce at least 17 co-branded Wetzel’s and Cold Stone locations across several states, including New York, Texas, Kentucky, Arkansas, Virginia, New Mexico, Nebraska, and Oklahoma in the current year, reflecting an aggressive expansion plan.
Currently, there are eight operational co-branded units, with an additional 40 in development, indicating robust unit growth. Jay Goldstein, vice president of franchise development at Kahala, emphasized the synergistic benefits of co-branding, stating, “The salty and sweet combination has been appearing forever so now we have the opportunity to offer that to guests in one unit.” This strategic move not only allows customers to enjoy a diverse menu but also provides franchisees with greater opportunities to increase unit numbers and sales in previously inaccessible markets.
Goldstein noted that Wetzel's is typically found in non-traditional settings such as malls, airports, and arenas. The partnership with Cold Stone enables Wetzel’s to extend its market presence into street-side locations, which are more suitable for ice cream sales. Conversely, Cold Stone gains access to mall environments where it struggles to operate alone due to lower foot traffic. This collaboration is expected to boost sales for both brands, as it enhances customer access and improves unit performance.
