Franchise Deep Dive: A&W Restaurants' Franchise Costs, Fees, Profit and Data

With its long history and signature offerings, A&W Restaurants continues to prosper and grow as America’s oldest franchise restaurant brand.

By Jeff DwyerStaff Writer

9:09AM • 06/27/23

LAST UPDATED: June 14, 2023
FRANCHISE WEBSITE: https://awfranchising.com/
NUMBER OF LOCATIONS: 800+
REPORTED COST TO GET IN: $276,000 to $1,469,554
REPORTED ROI (Item 19): N/A

A&W Restaurants is a classic American casual fast-food chain known for its iconic root beer and burgers. The A&W brand was first established in 1919 in Lodi, California as a roadside stand when founder Roy Allen handed out his first homemade soda. In 1922, Roy Allen partnered with Frank Wright. The duo then leased their first two root beer stands to other operators.That same year, the partners coined the name A&W, the first letter of their last names.

By 1925, the partners began selling franchise opportunities, making A&W the first and the oldest franchise restaurant chain in America. In 2011, A&W was purchased by a group of domestic and international A&W franchise partners.

To this day, A&W continues to sell its iconic root beer, burgers, shakes, hot dogs, sides and chicken.

How Many A&W Restaurants Are There?

As of June 2023, A&W has approximately 550 restaurants in the U.S. and over 300 standalone units internationally. The brand is actively offering new franchise opportunities across the globe.

What Is the A&W Restaurant Business Model?

The A&W Restaurant business model is focused on offering franchise opportunities and serving classic American cuisine, with an emphasis on burgers and the brand’s signature root beer. Since being purchased by a group of franchise partners in 2011, the brand says no decisions are made without input from the National A&W Franchise Association, its franchisee association board.

A&W provides all new franchise owners with ample support regarding site selection, training, marketing and supply chain management. The brand also leverages its brand heritage and emphasizes quality, taste and service to attract new guests. Unlike other franchise brands, A&W prides itself on being able to work in small towns. According to its franchise website, A&W has a “long history of success in small towns that other restaurant franchises overlook.” The brand is able to operate in smaller areas that pick up guest traffic from tourism.

In order to keep operating costs low for its franchise owners, A&W utilizes its partnership with Restaurant Supply Chain Solutions, which is a distributor for franchises such as Pizza Hut, KFC and Taco Bell. Through this partnership, A&W seeks to provide the lowest food, paper and equipment costs possible.

How Much Can A&W Restaurant Franchise Owners Make?

According to A&W Restaurants’ franchise site, the brand has average annual sales that are higher than the industry average. Since 2011, A&W owners saw same-store sales grow on average by upwards of 67%.

How Much Does It Cost to Open an A&W Restaurant?

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. A&W also requires franchise candidates to have a minimum liquidity of $150,000 and a net worth of at least $350,000.

What Is the Franchise Fee for A&W Restaurants?

The initial franchise fee ranges between $15,000 to $30,000.

Who’s on the A&W Restaurants Leadership Team?

What Helpful Articles Can I Read to Learn More about A&W Restaurants?

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Franchise Deep Dive: A&W Restaurants' Franchise Costs, Fees, Profit and Data

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