A&W Malaysia to spend RM110m capex to double the number of outlets within 5 years

by S BIRRUNTHA / pic by BERNAMA

A&W Malaysia Sdn Bhd has allocated RM110 million in capital expenditure (capex) to expand its footprint in Malaysia by more than doubling the number of its outlets nationwide from 49 to 124 within the next five years.

The country’s first fast food chain has entered into a development agreement with A Great American Brand International Pte Ltd (AGABI) to further strengthen the brand and its operation.

A&W Malaysia CEO George Ang said the brand has more than stood the test of time, and now it is at the threshold of a new era in the country.

“Since the acquisition by Inter Mark Resources Sdn Bhd two years ago, a series of value-and-services enhancing initiatives have been rolled out, paving the way for us to achieve the sales target in previous years.

“For this year, we aim to clinch sales of RM110 million. I strongly believe that we have moved from serving frozen chicken to fresh chicken.

“Although this means a 5% increase in cost, we will continue to do so without passing the cost to our customer since we firmly believe that our customers deserve the best,” he said at the signing development agreement ceremony in Petaling Jaya, Selangor, last Friday.

He added that moving forward into 2020, the fast food chain is making a comeback as a bigger and better brand.

“The expansion plan targets a new generation of discerning consumers in addition to the older consumers who grew up with fond memories of A&W.

“It will include setting up A&W dessert kiosks in some leading malls and retail centres nationwide with offerings such as Waffle to Go, root beer (RB) float in cones and sorbet RB with vanilla ice cream.

“We realised that in order for our expansion plans to come to fruition, we must be prepared to innovate and improve, and that is exactly what we will be doing in the months and years to come,” he said.

The signing ceremony was witnessed by the US Embassy deputy chief of mission in Malaysia Dean Thompson and A&W Restaurants Inc Global CEO Kevin Bazner.

Speaking at the event, Bazner commended A&W’s commitment in rejuvenating the brand following the change of hands of A&W Malaysia to Intermark Resources from KUB Malaysia Bhd in September 2018.

“We see the consumer affinity towards A&W is strong in Malaysia. We believe this addition to the long-term development plans of the company will contribute positively to the top and bottom line moving forward.

“I am proud to see that A&W has conceptualised plans to leverage on its rich heritage and legacy in Malaysia for a successful comeback.

“We will continue to offer direct and timely support through the A&W International division to Malaysia in reinforcing A&W’s presence across Peninsular Malaysia,” he said.

Established in 1963, the A&W franchise is the first and oldest fast food restaurant in the country, with the first outlet set up on Jalan Tuanku Abdul Rahman.

A&W Malaysia’s 49 outlets are located across Kuala Lumpur, Selangor, Negri Sembilan, Melaka, Johor, Perak, Pahang, Penang and