A&W Restaurant

Business History:

The business’s industry and sector

A&W Restaurant is part of the fast-food industry.

Their Mission

“Together we will make A&W the number one national burger choice for baby boomers and the fastest growing and most successful burger business in Canada.”

How they started

In 1956, the first A&W drive-in restaurant in Canada opened on Portage Avenue in Winnipeg. Serving a yummy combination of great tasting burgers, onion rings and frosted mugs of famous A&W Root Beer. A&W Restaurants rapidly multiplied across the nation, flourishing through the late '50s and '60s.

In many communities, A&W was the first generally branded restaurant in town. Their drive-ins served as “the place to be” in town. Whether they were kids in the back seat of the family, or just hanging out with their best friends on a Friday night glance out the hot cars, Canadian baby boomers grew up with A&W.


When they started

A&W started on 1956.

How they have grown over the years

A&W has continued to grow, over 700 locations from Vancouver Island to Newfoundlland. Still serving A&W Root Beer in frosted mugs, onion rings are made fresh from whole onions everyday. And the family burgers are still made with fresh.

Who runs the business

Paul Hollands              President and Chief Executive Officer

Donald Leslie              Chief Financial Officer

Susan Senecal             Vice President, Operation

Graham Cooke            Vice President, New Restaurant Expansion

P.M. Sahlstrom           Vice President, Purchasing & Distribution

Production:

Their main product(s) or service(s)

Their main products are A&W root beer, Burger family, Chubby chicken.

The main market they target

A&W Restaurant targets the whole Family and friends.

The supply and demand of one product

There is a large demand for beef patties and Root beers so they always have a large quantity in stock.

An overview of their productivity

            A&W is #2 chain in Canada, grown from 500 to 700 restaurant in last 5 years, franchisee relationship that is the envy of the industry, and one of the Canada’s 50 Best Managed Companies.

The pricing for main products and services

Their prices are extremely cheap for all products.

Significant fixed and variable costs

Fixed Costs= Wages, rent, insurance, and lease payments

Variable Costs= Materials, utilities, and supplies

Company profits and profit margins

In 2010 profits were $8.74 million, profit margin was 4%

Competition:

Their strongest competitors

Wendy’s, McDonalds, and Burger King are some of their strongest competitors.

Their competitive advantage:

While our obligation to having the best-tasting food hasn't changed, our restaurants are significantly different than they were in the drive-in days. As our customers' needs for convenience and faster service grew, our restaurants changed to meet those needs.

Summary:

Comment on reasons the companies have succeeded

The drive-ins of the '60s have been replaced by modern free-standing restaurants with drive-thru service. They were also stretched out into new, more convenient spaces. In shopping centers, airports, and highway gas/convenience locations, A&W is more available than ever. So is the famous A&W Root Beer. A&W remains Canada's No. 1 brand of root beer and also available not just in the restaurants, but in cans and bottles at our local grocery store.

Comment on possible weaknesses

Some brands may weigh down profits of top performing ones, and sensitivity to market fluctuations.

Provide an overall summary of the business

Markets A&W Root Beer in cans and bottles to the retail grocery trade through independent bottlers. January 3, 2010, Food Services operated 710 A&W restaurants. A&W Revenue Royalties Income Fund was founded in 2001 and is based in North Vancouver, Canada.