A&W Renewed Success Clue

Legacy brands don’t become legacy brands by doing nothing.  In fact one success clues that Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® reminds regular readers of this blog is “consumers are dynamic not static and brands must be as well”.

A&W restaurants have been around since 1919. That’s right 1919. You cannot survive over 101 years if you do not evolve.  Well guess what.  Rethinking its growth strategy, A&W entered the C-store sector and guess what happened?

Same-store sales at A&W Restaurants’ franchised gas and convenience store locations jumped by double digits in June, although Americans were driving fewer miles and buying less gas than usual. Sales at A&W’s more than 90 C-store locations were up 10.5 percent, following an 8.3 percent increase in May. They were an average of 11 percent higher during the January-February period before falling off in March and April, the result of the coronavirus pandemic.

The strong performance comes as the iconic brand prepares to expand its convenience store and travel center presence from coast to coast with eight new franchised locations. 

“At a time when Americans were staying off the road, it’s remarkable that sales at A&W convenience store locations were so strong,” says CEO Kevin Bazner. “This shows the tremendous value that A&W brings to C-stores and travel centers.”

“A&W truly is an all-American business opportunity that performs very well in all areas of the country,” Bazner added. He noted that in a recent national poll of 15,000 respondents, 74% had eaten at an A&W.

To help new C-store owners succeed, A&W 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 experienced double-digit comp-store sales growth in May and June, despite nearly all dining rooms being closed due to coronavirus. Average unit sales have increased by 38 percent since franchisees acquired the company from YUM! Brands in 2011.

“The pandemic is sadly forcing many stores, as well as independent and other chain restaurants, to close permanently,” Bazner says. “We expect more new franchisees will capitalize on these real estate opportunities and convert facilities that once housed other restaurant brands or businesses to A&Ws.” How are you evolving?

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

Foodservice Three Success Clues for June thru December 2020

Three words will be top of mind for all food retailers in as they navigate into and through 2020.  Those words are re-new, review, and reset according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® as the ‘battle for share of stomach’ intensifies.  

The line between all food retailers will continue to blur in the minds-eye of food retailers, but not in the minds-eye of the consumer.  What is top of mind for consumers is convenience, meals, and meal components at that can be mixed & matched into a customized family meal or personalized meal for one at a time according to Johnson.

1.       Re-new

Consumers fresh food fast.  What that means at retail is a 5 G digital transformation that includes a frictionless, contactless end-2-end solution (from ordering to consumption both for eating-in the store and for eating-out of the store).  

2.       Review

Retailers must review what branded interactions were driving sales prior to the C-19 shut down. In every sector of foodservice, it was a variety of prepared foods both family size portion and individual portions including regional side orders. are two of the top attributes that drive brand equity. All food sector retailers must optimize their menus, better cater to all for defined dayparts and focus on fast, fresh food.

3.       Reset

Consumers have reset in their minds-eye a new vision of what food retail should be and that vision blurs the line of brick-and-mortar locations and online retail. Within ever retail food sector consumers are now looking for a seamless branded experience whether they are ordering online, on a phone, or at a table, for eating-in or eating-out.  

Once again it is very important as a retailer to Reset as the line between all food retailers will continue to blur only in the minds-eye of food retailers, but not in the minds-eye of the consumer.  Resetting a focus on grocerant niche mix & matched fresh prepared meals and meal components will drive top of mind awareness in the minds-eye of consumers according to Johnson. Success does leave clues and re-new, review, and reset are three clues all food retailers need to keep close moving forward in 2020.

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Battle for Share of Stomach