The McCafe Experience - Co-branding Case Study

Abstract

This paper describes a case study of the McCafe and McDonald's co-branding arrangement. Co-branding is becoming increasingly popular in franchising as a means of stimulating growth in a mature sector. This case study provides an organisational perspective of co-branding, thus extending the existing literature which has focused on product specific co-branding. The study reveals that incentives for introducing the McCafe brand into existing McDonald's restaurants include attracting new and old customer segments, increasing internal and external competitiveness, assisting in cultural change, reinvigorating the brand, and stimulating sales growth. This preliminary investigation provides a starting point for further research into co-branded franchising arrangements.