Shopping Center Business

MAY 2016

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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CINNABON 148 • SHOPPING CENTER BUSINESS • May 2016 A LICENSE TO SELL Beyond its 1,350 franchise locations in 54 countries, Cinnabon also has expanded into grocery-store products by partnering with packaged-food kings Pillsbury and Kellogg's. Additionally, the company has ramped up its presence in other restaurant chains by teaming up with fast-food leaders Burger King and Taco Bell. In 2014, Cinnabon developed a doughnut product for Taco Bell called Cinnabon Delights, and initially launched Cinnabon Minibon rolls in more than 7,000 Burger King locations when the Minibon rolls first came out. The bite- sized Minibon rolls don't require a knife and fork. "While we know people love Cinnabon and always will, the challenge is finding new versions of it that may be more accessible or permissible." Last year, Cinnabon raked in $800 million in retail sales, and 70 percent of that was through licensing. Cinnabon is growing sales through a recent investment in new operational technology, too. In streamlining its new store prototype, one of the first things to go was the traditional point-of-sale (POS). Instead, Cinnabon has partnered with Revel and Apple to launch an iPad-based point-of-sale. "It takes less space, it's more relevant to guests, and it's more relevant to team members (it's easier to train them)," Guith says. "It isn't just a register — our franchisees will be able to do labor management and hourly planning for scheduling; we'll be able to manage the production flow and make sure we're keeping up with sales. It's not like other food concepts — Cinnabon takes 1 hour and 10 minutes from the time you're rolling, baking and pulling it out of the oven, so you've got to stay ahead of it." In addition to point-of-sale, production management and labor management, the new iPad-based system will also enable the company to go 100 percent paperless by year-end. "Everything will be on the iPad," Guith says. "And by the way, all of that costs less than the old point-of-sale. We're excited." As Cinnabon locations continue to update to the new POS, the remodel schedule also pushes forward. "It's going to be another year or two before we're done," Guith says. "Then we'll push the technology platform to the next level. That will be Phase II for Cinnabon." With so much brand-building momentum, shopping center owners are taking a second look at Cinnabon. "You get this upward momentum for the business. Remodels are a huge part of this. They help us do more than just build a better- looking bakery. The new technology and new look go hand in hand and continue to bring in great operators." SCB Bon Bake Shop by Cinnabon is a kiosk concept that allows Cinnabon products to be sold in a smaller footprint. Pictured is the unit at Willowbrook Mall in Houston.

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