5 Reasons To Buy an A&W Restaurant in 2022

The strain of 2020 and 2021 was no match for Mainland*GoogleAds&%3Butm_medium=g&%3Bgclid=Cj0KCQjwsZKJBhC0ARIsAJ96n3VACI1a1jInz3kfAJgMsZ24HcjEXnx4n59wc6gWVa2Eud6oAQi9jcMaAlP0EALw_wcB&utm_source=1851franchise.com&utm_medium=article&utm_campaign=5-reasons-to-buy-an-aw-restaurant-in-2022-2718268" target="_blank" rel="nofollow">A&W Restaurants as the brand announced additional expansion at a time while other restaurants were fighting to keep their businesses afloat. Many prospective franchisees have taken notice.

As franchise candidates look at a potential investment, A&W continues to offer an attractive business model that has stood through more than 100 years of industry experience. The brand has cemented itself as the classic, authentic American brand, fitting the needs of all ages, all markets and all franchisees. Here are five reasons why people should get involved today to help grow the franchise.

A Century of Brand Recognition

A&W’s strong reputation started in 1919 when its first Root Beer stand opened in California. Today, prospective franchisees have the opportunity to join a company with a long-standing relationship with its customers.

The brand has modernized its marketing strategy to appeal to new consumers, specifically within Gen X, Millennial and Gen Z demographics. Liz Bazner, senior director of marketing, says the brand has achieved a ‘hip nostalgia’ classification that is gravitating a younger audience to its restaurants.

Consumers were looking for that sense of nostalgia and familiarity during the COVID-19 pandemic, and with a modernized approach to a younger audience, A&W is well-positioned to thrive with multi-generational guests.

Franchisees Lead the Way

A&W franchisees play a key role in determining the direction of the entire brand, which sets the restaurant giant apart from its competitors. “Our franchisee-first approach was put in place before the pandemic, and it proved to be crucial during the most difficult year for restaurants,” said Kevin Bazner, CEO of A&W.

A handful of franchisees make up an advisory panel called the National A&W Franchisees Association (NAWFA) board. Multi-unit owner Linda Mulder is a member: “We are decision makers,” she said. “Our job is to create a culture of operational excellence by looking at things like food quality and employee satisfaction. Our role is vital in keeping A&W moving forward and the corporate team looks to us for everything.”

In addition to the franchisee-led decision making, many of the brand’s support center staff  have worked a shift in an A&W restaurant, allowing them to develop crucial behind-the-scenes experience. Its method has ensured each individual franchisee is given a voice, and the entire team of A&W Restaurants is guided by leadership that invests time and energy into hands-on understanding.

Growth During COVID-19

In the middle of a global pandemic, A&W secured four new franchisees, four existing franchise expansions and 14 new restaurant commitments. The brand’s success in 2020 enabled it to pursue 20 new freestanding restaurants in 2021, and after a 9% comp sales increase in 2020, the brand is in position to grow its presence even further.

“I felt like A&W proved themselves during the most trying of times,” said Tyler Simons, a new franchisee in Idaho. “And the model was in place to succeed no matter what the consumer landscape was forced to turn to.”

Like many new franchisees, Simons found immediate success bringing a universal brand to his town. A&W’s business model was impermeable in the wake of COVID-19, and new franchisees like Simons were able to reap the benefits while other restaurants fought to stay afloat.

Market Versatility

John Palumbo, senior director of franchise development, says the A&W brand resonates with people who seek authenticity, quality and value in their restaurants. “We’ve developed a strong ability to fit into most markets — even those that other brands might pass over. Our presence has been established in smaller towns and large markets alike, and our mission has been to succeed in both,” Palumbo said.

Phil Welch is a franchise owner in Wisconsin, and after finding success with a roadside location, he believes a location in his nearby town would be equally successful. “This brand has truly developed a universal reputation, and it’s exciting to see how many people have come to appreciate this service no matter where they might find an A&W restaurant,” Welch said.

Royalty Incentives

A&W has been aggressive with its royalty discounts, offering reduced fees for the first two years of operation for a new franchise. The brand has reduced franchising fees for multi-unit agreements by as much as 50%, and its corporate measures have cut its standard franchising fee in half for veterans. Under these measures, A&W has established a noteworthy effort to not only attract desirable franchisees, but to show how serious the brand is about rapid expansion.

The total investment to franchise with A&W Restaurants ranges from $276,000 to $1,397,000, including a $15,000 to $30,000 franchise fee. For more information on franchising with A&W, please visit https://franchising.awrestaurants.com/