A&W Targets Illinois For Expansion as the Brand Opens First Restaurant in Addison

A&W Restaurants is such an iconic name in the restaurant and franchise industries that it’s hard to believe there are still markets where the brand — more than a century old — has yet to establish itself. But the franchise has always taken a cautious, systematic approach to growth, resulting in a wealth of valuable white space in key markets across the country. Now, A&W is leveraging its enviable brand awareness to launch its first franchise location in Addison, Illinois, this September.

In early 2022, A&W signed a franchise agreement with franchisee Lee Fry, a veteran real estate developer. For 25 years, his business focused on real estate development for the food industry in Chicago and surrounding areas. When looking for franchise ownership opportunities, Fry said he fell in love with A&W because of the support offered by the franchisor.

“A&W was repurchased by franchisees, meaning its current owners know the ins and outs of franchise ownership,” said Fry. “Their goal is to help franchise owners, and their first-hand experience is invaluable. They offer a more intimate relationship as a result.”

Fry also appreciated the brand recognition involved in partnering with such an iconic company. Because A&W is over 100 years old, people are deeply familiar with its restaurants and fresh root beer.

“It’s funny; I talk to so many people in Illinois — on the phone and in person — about developing this A&W restaurant,” said Fry. “All the time, people say, ‘I used to love to go to A&W. I’m so happy they are coming back.’ There is a clear awareness in the Illinois area of A&W. Many of these people experienced A&W when they were younger, maybe traveling to Wisconsin where there were more locations. It seems that everyone knows the brand.”

John Palumbo, the brand’s senior director of franchise development, said that A&W has been eyeing growth in the Illinois market for a while, and 2022 is the perfect time to expand.

“The truth is, with a brand so popular across the country, we could easily set up shop just about anywhere and find a rock-solid customer base, but we're looking for more than that,” he said. “We’ve seen incredibly high demand in Illinois. That will ensure our franchisees launch their business in a booming market.”

A&W’s Addison franchise location will also benefit from the brand’s existing network of franchisees and resources in Illinois.

“We always grow in concentric circles, expanding out from existing locations,” Palumbo said. “That allows us to extend our resources and provide a close network of support for franchise owners, so they are never on their own.”

Illinois is only part of A&W’s ambitious growth plan for the next 10 years. The brand also seeks qualified franchisee candidates for new development in Arizona, Minnesota and beyond.  

“Part of the reason we are so cautious with our growth is that we are adamant about partnering only with franchisees who share our values and passion for great food and service,” Palumbo said. “That protects our brand, and it also protects our franchisees, and those are absolute prerequisites for success. Fortunately, it’s not difficult to find talented people who see the value of this opportunity and know how to follow the model we’ve perfected.”

The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,469,554 for a Freestanding Restaurant; $401,000 to $1,051,088 for an Inline Restaurant; and $276,000 to $704,000 for a Captive Restaurant, including a $15,000 to $30,000 franchise fee. For more information regarding A&W franchise opportunities, please visit https://franchising.awrestaurants.com/.