A&W pours RM1m into retro Insta-worthy outlet as it eyes 30% rise in Gen Z base

A&W Malaysia is bringing back the nostalgic days of the '60s, '70s and '80s when funk, soul and disco ruled the airwaves, by investing about RM1 million in a retro-themed outlet. Featuring a modern take on chic retro design, complete with booths, bar seats and a juke box, A&W Malaysia aims for this Instagram-worthy store to offer diners a nostalgic ambience.

It is also commemorating its journey in the Malaysia market since becoming the first fast food restaurant to open locally in 1963. The latest outlet at Seventeen Mall in Section 17, Petaling Jaya brings A&W's total number of outlets in Malaysia to 49. The brand plans to open a similar restaurant with a retro look and feel in Ipoh Parade. In a statement to A+M, CEO George Ang said some Malaysians might know A&W as the first fast food brand to open locally in 1963. Beyond that, it wants to offer a different kind of experience for consumers who walk into any A&W outlet. He also quoted American country singer Loretta Lynn, who said: "You either have to be the first, best or different." Inspired by this saying, he said the team came up with the idea of a retro store to ensure it is able to delivery the best fast food experience possible.

To target the younger generation of consumers, Ang said it will leverage heavily on digital and social media to amplify awareness and effectively communicate its messaging to target consumers within and in the surrounding areas.

This also ties in to the retro concept of the store itself. By giving it a different, nostalgic vibe, as reflected by the overall deco and setup of the place, complete with a jukebox, retro music, booths. Our aim here is to make it more 'Instagram-worthy' to encourage these younger consumers to share their experience on their respective social media account," he explained.

Generally, the ROI for A&W's new stores are usually 35% per annum. While the retro concept is a 20% increase in its capex, Ang believes it will also capture extra 20% in sales.

The new store was under construction for six months, with the initial concepts and strategies being carried out in-house by its own designers. "However, once we knew the concept and direction we wanted to go in, we have also been working with selected agencies to effectively execute the concept," he added. Ang, however, declined to reveal who were the agencies it worked with.

According to Ang, the area surrounding the restaurant in Petaling Jaya recently witnessed a slew of openings of refurbished and chic boutique restaurants and cafes, which have garnered a good following by residents.

However, A&W also realised that there has yet to be a QSR or fast food brand that brings something new or different to consumers. "So again here, we wanted to be the first such brand to bring a fresh and 'new' experience to the ever timeless Petaling Jaya, which certainly has its unique appeal and charm," he explained. The new outlet is also strategically located within a residential and commercial community, which will also increase traffic into its outlet, Ang said.

Following the opening of its latest outlet, Ang said A&W noticed that most of its consumers are those aged 25 and above, which is the right demographics it is targeting. However, as the store is still new, it is still conducting research and surveying the demographic of consumers.

We would like to increase those aged below 25 to 30%.

"What we would ideally like is maintaining the older demographic, but seeing an increased brand affinity and overall footfall from those aged 12 years and above. So actually, we are looking beyond Gen Y and Gen Z," he added.

While A&W still has its timeless classics such as Coneys and waffles, it also expanded its menu to include the Mozza Burger and its A&W Aroma Chicken to attract the younger consumers. Meanwhile, although TikTok is on its marketing radar, Ang said rather than leveraging on these platforms and hope to attract the younger generation, A&W wants to focus on having a clear objective and strategy on utilising these platforms. It also wants to ensure that it has clear and measurable goals and results. 

"There are also other factors to consider, as we would need time to build a following while developing relevant, quality, content as well for each platform. Moreover, in recent times, security issues have surfaced with these emerging apps. So again here, our priority is to create a safe environment for our consumers," he said.

A&W Malaysia's CEO George Ang said the new store reflects its continued commitment to customers. "We wanted to bring back the good old days while at the same time cater to a younger and modern generation of consumers. While the new store will certainly have its unique appeal with the older generation, we believe that even Millennials will find this store Instagram worthy and truly unique,” Ang added.

Last year, A&W Malaysia named GO Communications to publicise its expansion plans in the country while rejuvenating the brand to a modern generation of consumers. The brand previously said that it plans to leverage on its rich heritage and legacy in Malaysia to make a comeback into the market, and this will be done through a mix of communications initiatives. Ang said previously that the fast food chain intends to grow the number of its restaurants in Malaysia to 124 by the end of 2024.