McDonald's, Boston Market to share space

June 22, 2004 at 2:53 PM
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OAK BROOK, Ill., June 22 (UPI) -- McDonald's is preparing to supersize operations, in a Chicago restaurant with McDonald's fare side by side with that of Boston Market, a sister company.

The dual approach will be a test for the company, the Chicago Tribune reported Tuesday.

This approach, also known as "co-branding," is being pioneered by Pizza Hut and Taco Bell parent Yum Brands, a McDonald's spokesman said. Yum is co-branding five restaurants: Pizza Hut, Taco Bell, KFC, Long John Silver and A&W Family Restaurants.

"Yum Brands is the industry leader. It's worked out well for them," said Carl Sibilski, an analyst with Chicago-based Morningstar Inc. "Some are like a food court inside the building."

Pairing two or more of the restaurants within one building has allowed Yum to more closely match the average $1.6 million sales of a McDonald's restaurant, he said.

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