Cinnabon strives to dodge extinction through alliances with TikTok and ice cream offerings.
Revamped Article:
In the face of a 40-year-old quandary, Cinnabon rebounds: Can a brand iconic to food courts survive the decrease in mall construction?
GoTo Foods, Cinnabon's mastermind, isn't shying away from innovation. Cinnabon is set to unveil its first hybrid location with sibling brand Carvel next month, merging Cinnabon's flavorful cinnamon rolls with Carvel's scrumptious ice creams for an array of decadent desserts.
As CEO of GoTo Foods, Jim Holthouser revealed to CNN, "We received an enthusiastic thumbs-up from approximately 80% of America's populace when we road-tested this idea." This concept primarily targets Gen Z and millennial sweet tooths who yearn for one-of-a-kind indulgent experiences.
Holthouser refers to this indulgence as "little treat culture," a moniker for the growing social media trend among the young crowd purchasing bite-sized, affordable sweets as rewards for everyday tasks.
The Cinnabon Swirl menu caters to the TikTok generation, where unique dishes often skyrocket to viral fame. GoTo Foods anticipates it'll pique interest as foot traffic in malls has stagnated and traditional food courts have been replaced by more high-end options.
For starters, there's the "Bonini," a toasted cinnamon roll sandwiched with ice cream. Then there's the "Cinnabon Swirl Sundae," boasting a cinnamon roll's delectable center doused with soft serve ice cream. Adding to the menu are ice cream sandwiches served with Cinnabon-inspired cookies and Carvel-infused toppings, such as sprinkles or cookie bits.
A limited selection of Carvel and Cinnabon staples sold at their standalone locations—cakes, ice cream, and cinnamon rolls—are also available for purchase.
Wooing Franchisees
GoTo Foods franchises its brands, which include Auntie Anne's, Jamba, and Schlotzsky’s. Persuading franchisees to invest in an untested concept often faces skepticism. Yet, "Cinnabon Swirl" has been a resounding hit, Holthouser noted.
"We encountered no problems persuading potential franchisees," said Holthouser, adding, "Usually, new brands see some hesitance among owners before they take the plunge."
The first Cinnabon Swirl is slated to open in May in Oregon, with additional locations in Peoria, Arizona; Kennesaw, Georgia; and Pasadena, California set to debut by year's end. A further 30 locations are expected to open in 2026.
In contrast to other mashups, Carvel's branding is not explicitly incorporated into the title, though its colors and logos are showcased in the store. The strategy emphasizes Cinnabon due to its global recognition, with roughly 2,000 locations, compared to Carvel's 400, primarily established in the U.S. northeast.
Beyond the Mall
GoTo Foods has based its portfolio on brands that thrive on foot traffic, attracting customers while they shop or travel. However, the economic sustainability of these restaurants isn't as robust as standalone locations.
To tackle this issue, GoTo Foods aims to expand its lineup of dual-branded locations, mirroring the success it's encountered by integrating Auntie Anne's and Cinnabon stores.
For instance, an Auntie Anne’s sustains robust sales within malls but may struggle to cover the rents of a standalone location. By pairing an Auntie Anne's with a Cinnabon or Jamba, the profitability improves.
"If I want to keep these brands intact, maintain their narratives, and cater to consumers," Holthouser admitted, "I must discover alternative ways of broadening distribution for these brands."
Embracing dual-branded locations is a priority for GoTo Foods. The aim is to enhance efficiency and unit productivity by focusing on top-performing items at each chain. As David Henkes, a senior principal at Technomic, a restaurant research firm, put it, "This move would be akin to a greatest hits album from both chains—spotlighting the most successful items while omitting those that don't resonate as much."
Both Cinnabon and Carvel could use a shot of adrenaline: Cinnabon sales dropped 0.5% last year, and Carvel dwindled 6.5%, according to figures from restaurant research firm Technomic (GoTo Foods remains privately held and does not release financial information). The prevalence of dual locations seems to have exploded, according to Henkes, highlighting the Applebee's-IHOP concept initially launched in Texas with plans for a dozen more locations to debut in the coming months.
"The idea is to marry the strengths of two brands under one roof, hoping that 1 plus 1 equals 3 (or at least 2.5), generating a bit more in revenue while hopefully reducing the cost structure," Henkes said.
- By 2026, GoTo Foods plans to open an additional 30 Cinnabon Swirl locations, a hybrid restaurant featuring both Cinnabon and Carvel brands, merging their respective products.
- Despite Carvel's limited presence compared to Cinnabon, the brands have chosen to integrate Carvel's colors and logos in the Cinnabon Swirl store, aiming to capitalize on Cinnabon's global recognition.
- In an effort to boost sales and efficiency, GoTo Foods is expanding its dual-branded locations, integrating successful items from each chain to create a "greatest hits album" of sorts, hoping to increase revenue while reducing costs.
