A&W shifts focus towards non-traditional improvement

Within the final 10 years, A&W has delivered constant same-store gross sales development, a benchmark that eludes many restaurant chains. Comparable gross sales are up 67% in comparison with a decade in the past, and the QSR is eyeing its subsequent development stage: non-traditional improvement. 

“The model is as in style because it’s ever been,” stated Jack Palumbo, A&W senior director of franchise improvement. “It simply appeared prefer it was a very good time to capitalize on that.” 

The model has been increase non-traditional development internationally for a few years, Palumbo stated. However now A&W is plotting home non-traditional models, as effectively. 

The corporate is concentrating on airports, grocery shops, universities, stadiums and amusement parks. In some instances, non-traditional models in these areas are inexpensive than a big, freestanding drive-thru restaurant, Palumbo stated. Non-traditional places are these that include a captive viewers.

The corporate can also be opening further models in fuel and comfort shops, which the corporate has been creating for at the very least 25 years, he stated. 

A&W plans to take off in journey locations 

Conversations about rising non-traditionally inside Palumbo’s crew began about six months in the past. Palumbo led a cross-functional panel and committee to make sure the model was prepared for this shift from a coaching, design, development, actual property and menu optimization standpoint.

In an effort to thrive in these places A&W will should be versatile, he stated.  For instance, the chain’s menu might have change relying on the venue, and its restaurant design may need to shift relying on the scale of the location. Non-traditional eating places are likely to take up about 850 to 2,100 sq. ft. The common dimension of a traditional restaurant is 2,100 sq. ft. 

As A&W grows its non-traditional U.S. community, airports shall be “paramount,” Palumbo stated, since these websites include a big, captive viewers. However not all airports are equal, and consideration shall be made to out there pre- and post-security websites, in addition to the variety of vacationers an airport attracts, he stated. A&W has already been involved with all the main concessionaires, together with the likes of Delaware North, HMS Host, Centerplate and Aramark.

A&W will open its first Walmart location in Rock Hill, South Carolina, on Jan. 20. The corporate will proceed to open inside Walmarts going ahead, he stated. 

Whereas A&W considers fuel and comfort retailer places as conventional developments, these models are additionally a rising space for the chain. Comfort shops are a beautiful anchor and plenty of comfort shops will enable eating places to tack on a drive-thru on the finish of the constructing, he stated. 

For the final six to seven years, A&W has been a most well-liked vendor with Cenex Cooperative, a comfort and fuel station community within the Midwest, and is planning further development via Cenex’s 1,400-unit footprint. The corporate has a lot of Cenex-branded models inside A&W’s system, Palumbo stated. 

The restaurant is constructing an A&W at a Cenex-branded fuel and comfort station to be operated by a co-op named Cooperative Power in Sibley, Iowa, with an anticipated opening of Spring 2023, Paulmbo stated. One other unit is being inbuilt Fairview, Kansas, however gained’t be Cenex branded. 

Whereas A&W’s preliminary non-traditional models in course of have been within the Midwest, the restaurant is open to completely different geographies. A&W additionally has a presence in Arizona, for instance, Palumbo stated.

Going ahead, A&W goals to have about 25% non-traditional and 75% conventional improvement, Palumbo stated, which may shift towards 30% non-traditional and 70% conventional development over time. 

“We felt like [non-traditional] was one other alternative for us to … serve extra individuals and expose our model to the nation differently,” Palumbo stated.