A&W Targets Milwaukee and Upper Midwest for Franchise Growth

A&W Restaurants, the iconic franchise with more than 500 units in the U.S., says the Milwaukee area will play a key part in an aggressive 20-unit growth goal for this year. Currently, the brand has 50 units in the state, but only four in the Milwaukee metro area, which leadership believes can support as many as 20 units. 

“The Milwaukee region is the perfect match for A&W,” said John Palumbo, A&W’s senior director of franchise development. “Our brand resonates with people who are looking for authenticity, quality and value. That’s why we do extraordinarily well by bringing the one-and-only A&W experience to cities other brands pass over.”

Beloved for its signature Root Beer served in a frosty cold mug, the brand has been on an upswing for the past decade. Owned by a partnership of international and domestic franchisees, the brand has experienced a tremendous sales uptick, boasting a 33% sales growth compared to 2011. This positive growth trajectory comes after the 102-year-old brand racked up strong 2020 sales numbers, posting a 10% comp sales increase for the second year in a row. 

Currently, A&W has 18 stores in the development pipeline, with 12 deals signed at the end of last year. Palumbo says the brand is on track to sign another four to seven new franchises in the second quarter.  

The Milwaukee strategy is part of a development plan that includes targeting smaller markets in the upper Midwest, including Ohio, Indiana, Michigan, Minnesota, Iowa as well as the rest of Wisconsin. Palumbo believes these markets are underserved by bigger chains, giving A&W an opportunity to stand out. Additionally, the small-town feel of these heartland towns and cities works well from a brand standpoint by reinforcing A&W’s status as a classic, authentic American experience. 

Phil Welch, a third-generation A&W franchisee from Franksville, Wisconsin, about 20 miles south of Milwaukee, agrees. Welch’s grandparents opened their A&W in the early 1950s and he later took over the business. Today, the A&W he runs remains a local favorite, as well as a popular stopover for Chicago visitors, who enjoy the nostalgic feelings the brand evokes, in as much as its delicious root beer and burgers. 

That’s why Welch believes the brand is in great shape and has big potential in the state, which still offers a lot of territories for franchisees to grow, starting with Milwaukee. “We have about 50 locations in Wisconsin, but there’s room and a demand for more,” he said. “Milwaukee would be a great place to grow.”

The Wisconsin native also likes that A&W is franchisee-owned, giving a direct say in the management and direction of the company. He is now a member of the National A&W Franchisee board, the ownership group that manages the brand. “I like the way there is collaboration and that everyone’s ideas are respected. We help make decisions that affect our business.”

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/.