Lexington, Ky. — Ten years ago, the future of America’s oldest chain restaurant franchise was in question. A&W, owned by YUM! Brands, was struggling. But then a group of franchise owners formed a partnership and bought the company, which was 92 years old at the time, on Dec. 19, 2011. A&W is still the only major restaurant brand 100% owned by its franchisees. Since the acquisition: Same-store sales have increased every year, reversing 7 years of declines; sales this year are up 10.2%, following last year’s 9.2% growth. Average unit …
kevin bazner
Lexington, Ky. — Sales at franchised A&W restaurants soared 12% in July, the third straight month of double-digit same-store sales growth. July’s success follows a 15% jump in May and 16% in June. In addition to a rebound in traffic, overall system sales are being bolstered by the strong openings of five restaurants this year. Since franchisees acquired the company from YUM! Brands in 2011, average unit sales have increased by 38%. “Several factors explain why A&W is doing so well,” says CEO Kevin Bazner. “First is the brand itself. …
Lexington, Ky. — Same-store sales at A&W Restaurants’ franchised gas and convenience store locations jumped by double digits in June, although Americans were driving fewer miles and buying less gas than usual. Sales at A&W’s more than 90 C-store locations were up 10.5%, following an 8.3% increase in May. They were an average of 11% higher during the January-February period before falling off in March and April, the result of the coronavirus pandemic. The strong performance comes as the iconic brand prepares to expand its convenience store and travel center …
Lexington, Ky. — A&W Restaurants is expanding from California to New York and from Louisiana to Minnesota, the result of agreements signed with 10 new franchisees. The latest multi-unit deal, signed this month, will bring three locations to Lafayette, La. The popular fast food chain has opened 12 restaurants in the last 18 months. It now has 16 in development, with four being built by current franchisees. The new locations will be in major cities, such as Chicago and St. Louis, as well as mid-size and smaller communities. Seven will …
Lexington, Ky. — A&W Restaurants posted double-digit, year-over-year sales in May, with some franchise locations doubling their sales. Other burger chains, on average, managed only a 2% increase, according to Black Box Intelligence. The iconic brand’s performance comes as it reduces royalties for new franchisees. The incentive program lowers royalties in the first year of all new development agreements from the standard 5% to 3%. Second year royalties are 4%. Initial fees on multi-unit agreements also are being discounted. “The incentives give franchisees extra cushion in their first few years …
Lexington, Ky. — As A&W celebrates its centennial, the company is preparing for its next century with the recent opening of a new national learning center and prototype restaurant in Richmond, Ky. A&W, which was acquired by its franchisees from YUM! Brands in 2011, has welcomed more than 70 U.S. locations under the new leadership; a dozen more are in various stages of development. Located less than a half-hour from A&W’s headquarters, the Richmond restaurant is the first freestanding “Gen19” prototype that takes a holistic approach to guest engagement. The …
Lexington, Ky. — With the countdown to its 100th anniversary underway, A&W Restaurants, America’s first restaurant chain, is continuing to reappear along the roadsides that made it famous. After opening 15 franchise locations in 2017, the iconic brand expects to open another 12 this year.