Food & Beverage

A&W posts double-digit year-over-year May sales

Logo: Provided

June 11, 2020

Lexington, Kentucky-based A&W Restaurants posted a double-digit sales increase in May, compared with the year-ago period, with some franchise locations doubling their sales, in an environment where Black Box Intelligence said most burger chains recorded an approximate average of 2% increase in sales, according to a news release. 

The company credited, in part, its franchisee incentive program that lowers first year royalties for all new development agreements from the standard 5% to 3%. Second year royalties are 4% and initial fees on multi-unit agreements also are being discounted.

"The incentives give franchisees extra cushion in their first few years of operation," A&W Director of Franchise Recruitment Dave Crowley, said in the release. "They are in keeping with our commitment to help every franchisee grow profitable same-store sales."

In fact, since the COVID-19 pandemic first took hold in the U.S., A&W said it has seen an increase in interest among potential franchisees. A&W responded to the pandemic by introducing what it said have been "exceptionally successful" family packs, as well as an expanding delivery system that supplements drive-in and drive-thru service. 

Since A&W franchisees acquired the company in 2011 from Yum Brands and hired CEO Kevin Bazner, A&W has posted eight straight years of U.S. sales growth, with average unit volumes up 38% and the brand has opened more than 70 new locations. It currently has 15 freestanding and convenience store locations in development.