Rob Fussey, director of urban concept development for A&W, who has been working with the company for the past 30 years, said the urban concept was born on the West Coast and Vancouver is the first city in the country to experience A&W's new restaurant style. Based on the success of this concept, expect to see similar stores opening up in Toronto and Montreal to expand A&W's appeal beyond baby boomers. The new concept stores cater to the 25-to-40-year-old demographic, which has until recently had a hard time finding an A&W location in downtown Vancouver outside of shopping centres.
To cater to market-researched consumer concerns, A&W has added salads and chicken sandwiches to its menu, as well as self-serve ordering kiosks. Also, with the introduction of glass mugs for root beer and wire baskets for onion rings, each new store uses about 5,000 pounds less paper, Fussey said.
The future in general looks bright for A&W. The company, which has 715 locations throughout Canada, will add 27 locations this year, seven of them urban concept venues.
The cost of an A&W franchise is in the $1.1 million to $1.7 million range, with an initial franchise fee of $20,000 to $30,000, plus royalty fees, for a standard 20-year agreement.
from Western Investor, December 2010
