Franchising

A&W celebrates 10 years under franchisee ownership

Artist's rendering of a new A&W franchise. Provided.

December 10, 2021

A&W is celebrating 10 years under franchisee ownership. Ten years ago, A&W was purchased by a tenacious group of franchisees to try and turn the struggling company around, according to a press release.

Since the acquisition, which closed on Dec. 19, 2011:

• Same-store sales have increased every year, reversing seven years of declines; sales this year are up 10.2%, following last year's 9.2% growth.
• Average unit sales are up almost 50%.
• Nearly 70 new restaurants have opened, with more than 20 locations in development.

"Most franchisees were excited to be on our own and away from YUM! Brands' control," Kevin Klein, chairman of the National A&W Franchisee Association, a significant partner, said in the release. "Being under franchisee ownership allowed us to control our own destiny, which was thrilling and scary at the same time. We felt that our chain was being forced into co-branding with other concepts, which in many instances was not the right fit. We were a tiny part of a very large company, and we felt lost."

The association's first move was to ask former president Kevin Bazner to return. Bazner spent much of his career with A&W until YUM! acquired it in 2003. "I knew how dedicated the franchisees were to the A&W brand," Bazner said in the release. "Their hard work and commitment have brought us to where we are today."

Under Bazner's leadership, A&W moved away from the co-brand strategy, and today is building single-brand restaurants. Unlike most quick-service chains, it has shied away from discounting, instead focusing on quality.

Equally important is understanding franchisees' needs. NAWFA has a say in all key decisions, meeting at least monthly with Bazner and the leadership team. "The support staff at A&W actually wants to know what we think, which is practically unheard of in most companies," Klein said in the release. "Many chains say they listen to franchisees, but A&W proves it in every call, in-person meeting and store visit."

Bazner said interest among prospective franchisees is at the highest level since 2011. "Along with our sales growth, A&W has amazing brand recognition," he said in the release. "We have far more open territories than other burger brands, and our ownership model is very appealing."