A&W Malaysia eyes 124 more outlets by 2024, invests RM22m capex to grow brand

A&W Malaysia plans to open about 124 outlets nationwide by 2024 and is assigning RM22 million capex per year to strengthen the brand and its operations in Malaysia. It aims to open 20 new outlets in 2020. To realise its expansion plans, A&W has tied up with A Great American Brand International (AGABI)

A&W currently has 49 outlets nationwide and the expansion plan targets a young new generation of discerning consumers in addition to the older consumers who grew up with fond memories of A&W. Meanwhile Bernama reported that A&W is also targeting RM120 million in sales in 2020 compared with RM90 million last year. Quoting A&W Malaysia's CEO George Ang, Bernama said A&W sets aside approximately RM22 million of capex each year to launch 20 to 22 outlets. These include dessert kiosks in retail centres and shopping malls, Bernama said. For restaurants in particular, Ang said A&W invests about RM1 to RM1.2 million per restaurant. A+M has reached out to A&W for details on its marketing strategies for the new outlets.

Ang said the signing with AGABI represents a major leap forward for A&W Malaysia's plans to make the country’s first fast food chain great again. According to him, this is in line with its vision of becoming the top quick-service restaurant that Malaysians crave for.

Meanwhile, Kevin Bazner, global CEO of A&W Restaurants, said A&W Malaysia should be applauded for its commitment to reinvest and grow the brand.

“We see that the consumer affinity towards A&W is strong in Malaysia. We believe that this addition to the long-term development plans of A&W Malaysia will contribute positively to the top and bottomline moving forward. We will also continue to offer direct and timely support through the A&W International Division to A&W Malaysia in reinforcing A&W’s presence across Peninsula Malaysia,” he added.

Last year, the company eyed about 10 to 12 new outlets in 2019, with five of them offering drive-thru services. A&W planned to open the new branches in major cities such as Kuala Lumpur, Ipoh, Johor Bahru and Penang. A&W's spokesperson told A+M then that the move was to make the brand more accessible in locations where it has yet to be seen or engaged consumers. The spokesperson added that more efforts will be invested on establishing the brand and making it relevant in each of the satellite location.

Separately, Ang also said last year that it intends to grow the number of its restaurants to 60 by the end of 2019 and 100 by the end of 2020. This came as A&W named GO Communications in February 2019 to publicise its expansion plans in the country while rejuvenating the brand to a modern generation of consumers.

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