Franchising

A&W signs 8 C-store franchises, June c-store sales jump 10.5%

Photo: Provided

July 24, 2020

A&W's same-store sales at its franchised gas and convenience store locations grew significantly last month, according to a news release, even though the American Automobile Association reported that people nationally were driving less and purchasing less fuel than in non-pandemic times.

Sales at A&W's more than 90 c-store locations were up 10.5% in June, following an 8.3% increase in May. They were an average of 11% higher during the January-February period before falling off in March and April as a result of the pandemic.

A&W said it has recently signed agreements to build eight new C-store franchises in:

• Albany, New York
• Berkeley, California
• Cody, Wyoming
• Hot Springs, Arkansas
• Howard Lake, Minnesota
• Jefferson, Wisconsin
• Prescott Valley, Arizona
• Yermo, California

"A&W truly is an all-American business opportunity that performs very well in all areas of the country," A&W CEO Kevin Bazner said in the news release.

Bazner said that a recent 15,000-person national polls show that 74% reported having eaten at an A&W. To sweeten the deal beyond that notoriety for new c-store owners, the brand is lowering royalties in the first year of all new franchise agreements from the standard 5% to 3%. Second-year royalties are 4%. Initial fees on multi-unit agreements also are being discounted.

System-wide, A&W Average unit sales have increased by 38% since franchisees acquired the company from YUM! Brands in 2011. The brand is based in Lexington, Kentucky and includes more than 900 locations worldwide.