TL;DR
A&W Restaurants had to pivot its marketing strategies due to supply chain shortages, cancelling a chicken tender promotion and replacing it with a chili-cheese fry promotion. Despite struggles, the brand experienced its ninth year of consecutive growth in 2020 and is on track to exceed its goal of awarding 20 new franchise agreements in 2021.
In an interview with Bloomberg, Kevin Bazner, CEO of A&W, shared how the 102-year-old brand with 500-plus-locations has had to pivot its marketing strategies due to supply chain shortages. Earlier this year, the Lexington-based brand had to cancel a chicken tender marketing deal because its supplier couldn’t get extra stock of poultry. A&W was able to pivot and went with a chili-cheese fry promotion instead.
“Rather than running short, we replaced the promotion with something we could get,” Bazner said. “Supplies are improving, but we're still only getting about 80% of our orders.”
Despite the ongoing struggles quick-service restaurant brands are experiencing in the food and labor shortage, along with inflation, A&W experienced its ninth year of consecutive growth in 2020 and is on track to exceed its goal of awarding 20 new franchise agreements in 2021. The brand, which is known for its Root Beer, was also named as one of QSR Magazine’s Top 17 Restaurant Franchising Deals in 2021.
In this story
This story was originally published in 1851 Franchise on November 2, 2021. Burnaze summarizes and links to the original reporting.
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