Bear Claw, Mr. Pita to join in stores

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Date AddedAugust 12, 2009 11:36:07 PM

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The partnership will "bring two streams of revenue under one roof" and attract customers around the clock, with breakfast, lunch, dinner and dessert offerings, said Askar Brands spokesman Gary McCausland.
Bear Claw may also co-brand with other Askar Brands franchises -- Papa Romano's Pizza, Stucchi's Ice Cream and CJ's Brewing Co. -- in the future, said Debi Scroggins, Bear Claw's founder.
The opportunity will allow Bear Claw, with close to 20 locations in Michigan and two in Kentucky, to expand into other parts of the country. The company recorded sales of $5.5 million in 2008, Scroggins said.
Askar Brands has nearly 100 restaurants in seven states and did $44 million in sales last year, according to industry publication Chain Leader.
A limited Mr. Pita menu will be offered at Bear Claw's Brooklyn, Chelsea, Ann Arbor and Dexter stores by the end of the year.
Industry analysts say co-branding, if done correctly, can strengthen each company's image and increase brand recognition. Examples of successful experiments include Tim Horton's with Cold Stone Creamery and Louisville, Ky.-based Yum Brands concepts Taco Bell and KFC.
"In the restaurant business, the name of the game is how many locations you have," said Harry Balzer, vice president at NPD Group, a market research firm in Port Washington, N.Y. Co-branding is a quick and efficient way to increase a brand's reach without building new stores.
However, partnerships entail risk, especially if one brand name becomes tarnished, said Leland K. Bassett, chairman and CEO of Bassett & Basset Inc., a communications and management consulting firm in Detroit.