Cinnabon Franchises Expanding Globally




Who would not be enticed by the sweet smell of cinnamon rolls wafting through the air in the morning?

Perhaps one of the sweetest successes a business can have is to penetrate the global market and sell its products and services across the world. This is what Cinnabon has been doing despite the downfall of the economy. For Cinnabon, the secret to their expansion, not just in the U.S. but worldwide is its franchising model. The company has a flexible franchise model that caters to different opportunities. Two situations mentioned in the interview are selling the brand directly to the consumers, like the ones found in supermarkets and grocery stores, and creating Cinnabon products for other restaurants.

Because it is under the Focus Brands Company, it has been able to find markets abroad such as in the Middle East, as well as in other parts of the world. To date, they are the only American brand that has penetrated the Libyan market, according to Fox Business.

There is no surprise to what a successful brand with an effective marketing strategy can achieve, like what Cinnabon has accomplished over the years, considering that the company is only 23 years old. The location of each Cinnabon branch is strategically placed to ensure optimum revenues. Even when the economy is down, people still shop and travel. This becomes a great opportunity for Cinnabon. In addition, Cinnabon has adapted its products for each locality. In the interview, Kat Cole, the president of the company, mentioned that Cinnabon in the Middle East has more indulgent toppings as compared to US counterparts. Consumers in the Middle East have a sweeter tooth compared to Americans.

It is also great news that Cinnabon has tapped into the healthy lifestyle market. Even though cinnamon buns are known to have high calories, Cinnabon worked its way around it by producing smaller versions, which people can indulge in without feeling the guilt.

However, there are two concerns that have been brought up: the implementation of higher taxes that can change consumer buying and the economic climate.

Cinnabon has exceeded 1,000 locations, and international expansion in places such as Russia and the Middle East is strong, according to President Kat Cole. The “fiscal cliff” has the potential to affect consumers and thus Cinnabon’s business, she noted. “But a bigger picture is, for our franchisees, they want to have faith that the business climate will continue to improve tomorrow and the government really needs to show us that that’s possible.”

For a company to flourish like Cinnabon, a lot has to be considered.

  1. Adapt to the locality.
  2. Find a franchising machine that can find the right franchising market or partners
  3. Adapt to the needs of the market.
  4. Have a flexible franchising scheme.

  

Photo by marvinndiaz

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