How A&W Restaurants Is Leading The Segment in Franchisee Support

For generations of Americans, A&W Restaurants has become synonymous with the best of American comfort food: juicy burgers, crispy chicken fingers and, of course, the brand’s iconic house-made rootbeer, served in its iconic frosted mug. But for franchise industry professionals, the 100-plus-year-old brand is perhaps known more for its operational advantages than its consumer offerings. Namely, A&W has established one of the strongest franchisee-support systems in the QSR segment and maybe in all of franchising. 

“There are any number of reasons entrepreneurs continue to flock to A&W, but support is always at the top of the list,” said John Palumbo, A&W’s senior director of franchise development. “First-time franchise owners want to know that we will have their back, and even more experienced, multi-brand investors want to know that they aren’t going to have to build the business themselves to see a substantial ROI. So our franchisee support has proven critical for every franchisee.”

On-Site Support

A&W’s franchisee support begins before a new owner opens their first store.

“From the moment a new A&W franchisee signs their franchise agreement until the day they retire,” they benefit from hands-on support from a dedicated corporate team member, Palumbo explained. Even before opening their store — even before building their store —  A&W’s real estate team works closely with each franchise owner to select the most effective store model and location based on troves of data regarding market conditions and demographics. 

Next, A&W’s PR and marketing teams work closely with franchisees to strategize and publicize an exciting grand opening to drum up buzz and build a thriving customer base.

“And that’s truly just the beginning,” Palumbo said. “We don’t ween franchise owners off our support as soon as business gets going. We continue to work closely with every owner on everything from P&L sheets to staffing issues. We know that our success as a franchise system depends entirely on the success of our franchisees, so our job is to ensure their continued success at every opportunity.”

Comprehensive Training

To ensure every franchise location hits the ground running and operates smoothly from day one, every A&W franchisee is provided with comprehensive training on all aspects of the operational model. That training program includes hands-on experience at the brand’s national learning center.

“After more than 100 years in business, our owners have faced just about every challenge this industry has to offer,” Palumbo said. “As a result, we have training modules that address the range of challenges our franchise owners may encounter. We can equip franchise owners with everything they need to run a successful business before they even serve their first customer, regardless of their prior experience in our industry.”

Marketing Fund Management

Once franchise owners are up and running, A&W’s national, regional and local marketing services ensure that every restaurant benefits from heightened brand awareness — a critical point of differentiation in an industry where marketing is often largely left up to franchisees.

“We have a truly expert team of marketers,” Palumbo said. “That is something we have really prioritized on the corporate level, and the benefit can’t be overstated. Our marketing team works closely with franchise owners to develop the most effective marketing strategy for each location’s target audiences. That kind of dedicated marketing support is exceedingly rare in this business, and it gives our franchisees the added advantage of remaining focused on their day-to-day operations.”

A Franchisee-Led Brand

Why is A&W more focused on franchisee support than competitors in its segment? The answer likely has to do with the franchise’s unique standing as a 100% franchisee-owned brand. 

“Our franchisees are true partners at the corporate level,” Palumbo said. “You hear a lot of lip service to partnership at other franchise brands, but they aren’t owned by their franchisees, so they tend to stray from the guidance of their franchisees when it’s no longer convenient for the corporate team.”

To ensure full alignment between A&W’s corporate team and its franchise owners, Palumbo says the brand also requires all of its corporate team members to work in an A&W restaurant at least once per quarter, ensuring every single person on the A&W team is intimately familiar with the challenges and opportunities at the store level.

Palumbo says this unique ownership model drives more strategic thinking from franchisees. “They are fully brought into the franchise system as a whole,” he said. “Nothing is decided in an ivory tower and then passed down to franchisees; they are making real decisions regarding the direction of this brand.”

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. To learn more about franchise opportunities with A&W Restaurants, please visit https://franchising.awrestaurants.com/.