TL;DR
A&W Restaurants expects a 2.4% rise in total cost this year, a significant decrease from the 20% increase in 2022. CEO Kevin Bazner expressed cautious optimism that costs may even decrease further.
After record inflation in 2022, A&W Restaurants is predicting the cost increase for paper products, hamburger patties, ice cream and more to rise much more slowly this year. Many major restaurant networks have experienced a squeeze thanks to higher costs in recent months, but the trend is not expected to continue for the A&W network.
In 2022, A&W’s cost of goods rose about 20%. This year, the total cost is expected to rise by just 2.4%.
"We're cautiously optimistic that is even going perhaps slightly lower," CEO Kevin Bazner told Reuters .
Bazner also expected fewer construction delays and more efficient equipment receipt as backlogs for key kitchen equipment are starting to dissipate.
The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,469,554 for a Freestanding Restaurant; $401,000 to $1,051,088 for an Inline Restaurant; and $276,000 to $704,000 for a Captive Restaurant, including a $15,000-$30,000 franchise fee. For more information, visit
In this story
This story was originally published in 1851 Franchise on April 19, 2023. Burnaze summarizes and links to the original reporting.
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