Milwaukee Business Journal: A&W Eyes Milwaukee Market for Growth

In an interview with Milwaukee Business Journal, John Palumbo, A&W’s senior director of franchise development, discussed how the brand plans to grow in the Milwaukee region as it prioritizes its standalone model in 2021. Although A&W, which already has locations in the market such as Hales Corners and Franksville, has not disclosed how many locations it plans to bring to the local community, Palumbo said it plans to expand with a “responsible and calculated approach.” The brand plans to announce at least one new location in the market this year.

A&W is a 500-plus unit restaurant franchise with nearly 300 standalone locations in markets across the country and saw its ninth consecutive year of growth in 2020 with a 9% sales increase across its system. The brand plans to use this momentum to spur growth in Milwaukee and Madison, according to Palumbo. There have already been conversations between corporate and potential franchisees in the market.

A&W’s traditional business approach strongly resonates with guests who are looking for authentic brands, which explains the brand’s recent renaissance with sales up 33% since 2011. A&W was also ranked eighth on Entrepreneur’s 2021 Top Food Franchises in the category of Best Hamburger franchise.

The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,454,750 for a Freestanding Restaurant; $401,000 to $1,013,750 for an Inline Restaurant; and $276,000 to $704,000 for a Captive Restaurant, including a $15,000-$30,000 franchise fee.