IMAGE: Susan Montgomery
The legacy American franchise restaurant expands its presence into new territories.
A&W Restaurants, the 101-year-old restaurant franchise with more than 900 locations in the U.S. and Asia, has announced several new restaurants nationwide as a result of recent agreements signed with 10 new franchisees. Having opening 12 restaurants in the past 18 months, A&W now has 16 in development, with four being built by current franchisees.
“A&W truly is an all-American business opportunity that performs very well in all areas of the country,” said CEO Kevin Bazner. He noted that in a recent national poll of 15,000 respondents, 74 per cent had eaten at an A&W.
The new locations will be developed in major cities across the States, such as Chicago and St. Louis, as well as mid-size and smaller communities. Seven of the 16 in development are set to be located in convenience stores and travel centers.
“The pandemic is sadly forcing many stores, as well as independent and other chain restaurants, to close permanently,” Bazner said. “We expect more new franchisees will capitalize on these real estate opportunities and convert facilities that once housed other restaurant brands or businesses to A&Ws.”
To incentivize franchise ownership, A&W is lowering royalties in the first year of all new franchise agreements from five per cent to three per cent, with second-year royalties climbing to four per cent. Initial fees on multi-unit agreements are also being discounted.
