Restaurant properties have been among the most active in the corporate licensing space of late, as they partner for brand extensions, lifestyle collaborations, and novelty items for fans. For the most part, these are national (or international) chains with multiple locations and a high profile among mainstream consumers. Occasionally over the years, however, local or regional chains with one or a handful of locations have entered the licensing business:
- Most recently, HN Holding, owner of the Health Nut salad and sandwich chain, said it was launching a licensing program, headed by chief brand officer Cindy Bailey, founder of Art Impressions, and assisted by consultant and former Warner Bros. exec Dan Romanelli. Branded product plans include retail versions of the chain’s dressings, salads, sandwiches, and teas, along with healthy snacks, protein bars, and sauces. Health Nut, which has three locations in the Los Angeles area and recently announced Kris Jenner as its first investor, is known for its fresh ingredients; vegan, vegetarian, organic, and gluten-free options; and homemade dressings. The Kardashian clan has been featuring the chain’s products on its TV series since 2015. Licensing is part of a broader expansion plan for the chain.
- Junior’s, the classic Brooklyn-based restaurant best known for its New York-style cheesecake, signed a deal with White Coffee to bring branded ground coffee and K-cups to retail starting in fall 2021. The deal with White, which has supplied the bottomless coffee offered inside the restaurant for several decades, was brokered by Surge Brands. The product line, which consisted of five flavors to start (plus K-cup hot chocolate), marked the restaurant’s first-ever licensing deal. In addition to its original location, Junior’s also has two restaurants in the Times Square area of Manhattan and one at Foxwoods Casino in Connecticut. It also has a bakery outlet store in New Jersey.
- Billy Goat Tavern, which has eight locations in Chicago, is the inspiration for the classic SNL “Cheezborger!” diner sketch starring John Belushi, Bill Murray, and Dan Aykroyd. It is also known for “the curse of the Billy Goat” its owner placed on the Chicago Cubs in 1945, which lasted for 71 years. In 2016, the Tavern retained JRL Group to manage a licensing program encompassing food, apparel, publishing, gifts, and novelties. Shortly thereafter, it signed Devanco Foods for a line of branded frozen burgers, which launched at Jewel-Osco supermarkets and is now available widely, followed by a deal with Miskatonic Brewing Company for IPA and pilsner beers, announced in 2020. Rally House offers Billy Goat t-shirts in the Chicagoland area.
- Dan Tana’s, the Italian restaurant that is a West Hollywood institution, announced an apparel capsule with the Cloney streetwear brand in 2019. The collection, representing Cloney’s first official collaboration, included two sweatshirts, two crewneck sweaters, and two sweatpants, priced from $150 to $185 and sold through Cloney Online and Fred Segal stores. Dan Tana’s had retained Prominent Brand + Talent as its licensing agent two years earlier, with plans including a branded retail food program consisting of olive oil, wine, pasta, vinegar, and fresh and frozen Italian foods—the restaurant had already been distributing sauce through local Bristol Farms natural food stores—as well as expansion of the restaurant to other locations, especially in Asia and Europe.
- Pink’s Hot Dogs of Hollywood, which currently has 13 locations, mostly in the Los Angeles area (as well as at the Wisconsin Dells, in Honolulu, and in the Philippines), signed Firefly Brand Management as its U.S. licensing agent in 2017. The focus was expected to be on apparel, accessories, condiments, gifts, and novelty products. In 2011, the chain began to expand beyond its Southern California base, where it began as a hot dog stand in 1939, with a focus on locations such as amusement parks and casinos. It has appeared in the opening credits for the Craig Ferguson late night talk show and on an episode of America’s Next Top Model.
- Hussong’s Cantina, a familiar name to attendees of Licensing Expo for its restaurant in The Shoppes at Mandalay Place, also has another Las Vegas location as well as the original in Baja California, Mexico. The U.S. locations are operated under license by Titan Brands. In 2016, Hussong’s signed a deal with All-American Licensing for expansion into beverages, prepared and frozen foods, sauces, snacks, and apparel. The original location in Mexico is billed as the inventor of the margarita in 1941, and continues to sell branded tequila, which is distributed in the U.S. by McCormick Distilling Co.
- Tito’s Tacos, a taco stand founded in 1959 in Culver City, California, retained Prominent Brand + Talent in 2016 to license its IP for prepared and frozen foods, sauces, snacks, and apparel. The restaurant continues to operate its single location and is well known to locals and visitors to the area.
- Tavern on the Green, the famous restaurant in Central Park, worked with Tavern Direct on a line of retail salad dressings, oils, and other specialty foods over a decade ago. After a bankruptcy and disputes over the IP’s ownership, the Tavern on the Green brand was acquired in 2011 by a newly formed licensing company, Tavern International, with which the owner of Tavern Direct was involved. It planned to extend the brand into retail products including food, home furnishings, apparel, and accessories, as well as restaurants outside the tri-state area surrounding New York City. There were restrictions, negotiated with the city, which maintains certain ownership rights. The restaurant itself closed in 2010 but came back under new management in 2014.
While these are small chains or even solo locations, they have broader recognition from their e-commerce operations and online followings, a presence on television and other entertainment venues, and/or their popularity with tourists from around the world who stop in when visiting the area. All of this adds to their licensing potential.
On the other hand, their small size and relatively narrow recognition compared to national or global chains presents challenges. These are underscored by the fact that deal signings for most of the programs listed here have been few and far between; in addition, several of the older agreements mentioned, both with manufacturers and agencies, are no longer in place.
That said, with the continued rise of licensed lifestyle and novelty collaborations based on restaurant brands, which are short-term and low-risk, along with the ever-growing means for local chains to establish a national or global presence, even without a broad physical footprint, the licensing business is likely to see more small regional restaurant properties dip their toes into the consumer-product waters.
The newest edition of the Raugust Communications monthly e-newsletter comes out next Tuesday, June 21, 2022. The Licensing Topic of the Month will focus on the proliferation of social-emotional content and messaging, across property types and product categories, while the Datapoint research spotlight will analyze the business models used by celebrities for their licensing and brand-extension activities. If you are not yet a subscriber to this free publication, sign up here.
This post was updated to reflect new information about the Billy Goat Tavern licensing program.
Comments are closed.