Hospitality Technology: A&W’s Growth Plan Prioritizes Drive-Thru

In an interview with Hospitality Technology, John Palumbo, senior director of franchise development of A&W, discussed the brand's plan to prioritize its standalone drive-thru model in 2021. A&W, the iconic franchise with 500-plus locations across the country and 300 standalone units, has inked nine new U.S. locations, all which include drive-thrus. This expansion comes at a time when nine out of 10 consumers are visiting drive-thrus according to The State of What Feeds Us Study. The 102-year old brand experienced a sales growth of 19.6% over 2020 and while many quick service restaurants are scaling down the size of their locations, A&W is resisting the trend. 

“Some operators are looking to reduce the size of their dining rooms – to reduce costs and buildout costs,” said Palumbo. “Not A&W. Dining rooms are important for our legacy model. You can’t have a Root Beer in a frosty mug through the drive-thru.”

A typical A&W restaurant is around 2,100 feet, which allows for a dining room area to cater to guests coming for a nostalgic experience. A&W’s plan for standalone location growth stems from the brand experiencing its ninth year of consecutive growth, and it plans to open 20 new locations in 2021.

The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,454,750 for a Freestanding Restaurant; $401,000 to $1,013,750 for an Inline Restaurant; and $276,000 to $704,000 for a Captive Restaurant, including a $15,000-$30,000 franchise fee.

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