Philly Pretzel Factory featured in QSR Magazine

Philly Pretzel was featured in QSR Magazine in an article titled, "Pretzels and Italian Ice: Match Made in Heaven?" The article discusses the new co-branding of stores between Rita's Italian Ice and Philly Pretzel Factory. Marty Ferrill discussed how the two products will work well together and the decision for branding to add extra revenue streams for franchisees. 

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Pretzels and Italian Ice: Match Made in Heaven?

By Marlee Murphy

Most franchisees would jump at the opportunity to boost their revenue with limited additional costs. Jeff Moody and Marty Ferrill are trying to give their franchisees the ability to do just that.

Moody, CEO of Rita’s Italian Ice, and Ferrill, president of Philly Pretzel Factory, announced a new cobranding operation between their brands.

“It gives our franchisees and potentially Philly’s franchisees the ability to go into more places, to have higher volumes, to share personnel and facilities, and to get better economies,” Moody says. “Also, it provides a greater line up for consumers.”

Moody and Ferrill believe a dual-brand store will attract more consumers and generate more revenue than a single-brand store. “Pretzels and what we call ‘water ice’ go really well together. It’s a really nice fit,” Ferrill says. “And the additional revenue for one franchisee is the added benefit.”

Ferrill says franchisees’ finances are used more efficiently when they are able to utilize one space for two different products.

“The economics work better in terms of the build out for the space when you only need one thing now, like one refrigerator, one POS system,” he says.

Start-up costs for cobranded stores will be similar to those of a single-brand store, but franchisees with the two brands will see more returns due to their product variety, Moody says.

He says cobranding success is highly dependent upon operational, marketing, and product compatibility. Rita’s Italian Ice and Philly Pretzel Factory are both Philly-based brands and both share a commitment to high-quality, fresh products, making them ideal candidates for cobranding, Moody says.

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