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Halfway through 2021, <a href="https://franchising.awrestaurants.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=aw-wraps-up-q2-with-14-new-restaurant-commitments-and-20-more-deals-in-the-pipeline-2716368" target="_blank" rel="nofollow">A&amp;W</a>, the one-of-a-kind American restaurant brand with more than 500 units in the U.S., has already awarded eight new units and received commitment for 14 new restaurants, putting the brand on track to reach its 2021 franchise sales goal of 20 new restaurants by the end of the year.“Our development team and our dedicated franchisees did a great job facing the challenges of the pandemic and seeing exceptional growth despite all of the uncertainty COVID-19 brought to the restaurant industry,” said <a href="https://www.linkedin.com/in/kevin-bazner-7b4a546/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=aw-wraps-up-q2-with-14-new-restaurant-commitments-and-20-more-deals-in-the-pipeline-2716368" target="_blank" rel="nofollow">Kevin Bazner</a>, CEO of <a href="https://1851franchise.com/awrestaurants">A&amp;W</a>. “We’ve seen tremendous growth over the past year alone because of our commitment to seeing our franchisees succeed.”That growth includes welcoming four new franchisees into the brand’s system in Q2, as well as celebrating four existing franchisees’ decisions to expand with the brand and invest in another location.The brand’s success thus far in 2021 comes after an equally successful 2020, when A&amp;W managed to post a 10% comp sales increase for the second year in a row — during one of the most trying times in modern history.So how has the 102-year-old brand managed to stay on top?According to <a href="https://www.linkedin.com/in/liz-bazner-61277745/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=aw-wraps-up-q2-with-14-new-restaurant-commitments-and-20-more-deals-in-the-pipeline-2716368" target="_blank" rel="nofollow">Liz Bazner</a>, senior director of marketing for A&amp;W, the brand’s success is due in part to its ability to <a href="https://1851franchise.com/awrestaurants/how-aw-is-appealing-to-gen-x-millennials-and-gen-z-2716253#franchisor">appeal to multiple generations</a>. “A&amp;W offers a shared experience of different moments in time,” she said. “And younger generations are discovering that about our brand. We offer an authentic experience and a piece of American history.”That multi-generational appeal has led the brand to see a 33% growth compared to 2011, and A&amp;W shows no signs of slowing down its growth. At the end of July, A&amp;W has a total of 308 leads, with 35 of those in the Director Call status, meaning those leads are moving in a promising direction through the pipeline.&nbsp;“We’ve experienced a strong start to the year, and our goal is to continue growing,” said <a href="https://www.linkedin.com/in/john-palumbo-3373008/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=aw-wraps-up-q2-with-14-new-restaurant-commitments-and-20-more-deals-in-the-pipeline-2716368" target="_blank" rel="nofollow">John Palumbo</a>, senior director of franchise development for the brand. “We’re now prioritizing our standalone drive-thru model, which saw a 14% increase in average unit volume in 2020. We’re excited to see so much growth potential in 2021.”ABOUT A&amp;WEstablished in 1919 in Lodi, California as a roadside stand, A&amp;W Restaurants now stands as a thriving part of the American experience. With 500-plus locations across the country, including 300 standalone restaurants, the brand remains a one-of-a-kind true original. Even its signature A&amp;W Root Beer, served in an iconic frosty mug, is handcrafted at the restaurant. Today, that traditional approach is resonating strongly with consumers, who are looking for authentic brands. For more information, visit <a href="https://franchising.awrestaurants.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=aw-wraps-up-q2-with-14-new-restaurant-commitments-and-20-more-deals-in-the-pipeline-2716368" target="_blank" rel="nofollow">https://franchising.awrestaurants.com/.</a>

A&W Wraps Up Q2 With 14 New Restaurant Commitments and 20 More Deals in the Pipeline

1851 Franchise

The century-old, franchisee-owned brand is taking full advantage of a wealth of new growth opportunities.

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


A&W Wraps Up Q2 With 14 New Restaurant Commitments and 20 More Deals in the Pipeline

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