How A&W is Positioned to be the Next Great Franchise Opportunity

Drive-thru restaurant options are becoming increasingly popular with consumers, and A&W Restaurants, the 500-plus unit all-American restaurant concept, has long perfected this aspect of operations. At the end of 2021, the average time spent in a drive-thru line increased by over 25 seconds compared to the year before, indicating that higher volumes of guests are utilizing drive-thru options than ever before. Unfortunately, order accuracy dropped from 87% in 2020 to 85% in 2021.

A&W Restaurants, on the other hand, has not experienced this friction despite its over 9% revenue jump for units that include a drive-thru option. Because it has been perfecting its operations for over a century, its franchise owners are more than prepared to keep up with the growing demand for quick, accurate drive-thru service.

While there has been a substantial shift from more traditional office careers to an interest in franchising, prospective franchise owners want to know that the opportunity they choose to invest in will lead them to success.

As it continues to grow, the brand has recognized the rise in demand for drive-thru service and is prioritizing this amenity in its expansion plans. However, it is not losing sight of its traditions, either.

“Some operators are looking to reduce the size of their dining rooms — to reduce costs and buildout costs,” John Palumbo, A&W’s senior director of franchise development, said in an interview for Hospitality Technology. “Dining rooms are important for our legacy model. You can’t have a root beer in a frosty mug through the drive-thru.”

For A&W, it isn’t one or the other, and it is this approach that sets the brand a step above other franchising options. The brand has seen year-over-year growth for nearly a decade straight, proving just how resilient its owners and operators are and just how committed the corporate team is to ensuring the brand succeeds.

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-$30,000 franchise fee. For more information on franchising with A&W, please visit https://franchising.awrestaurants.com/.