In: Economics
1. What's A&W's Leadership strategy?
2. What's their Strategic direction?
What's A&W's Leadership strategy?
A&W is a 100-year-old brand. Kevin Bazner, president and CEO, has been a key part of the brand's resurgence, part of an effort to "sustain the company for another 100 years. He's pushed the needle on everything from menu changes and marketing efforts to unit economics and aggressive development strategies. Today, he says, he remains committed to long-term development of the brand both at home and abroad. Under his leadership, A&W sales have dramatically turned around and are outpacing the industry. After years of declining unit counts, the brand is again growing, with both existing and new franchisees opening restaurants. A&W now has nearly 1,000 restaurants operating worldwide.
Bazner is committed to the long-term development of the iconic chain and continues to head day-to-day operations and the development of A&W's domestic and international markets. An example of this commitment came earlier this year when the brand introduced a new franchise growth program offering reduced royalties for new franchisees and an incentive program for existing operators. They are focused on an accelerated growth plan with a goal of adding another 50 to 75 restaurants per year, with a continued focus on growing profitable same-store sales."
A&W started with a 100 percent focus on improving existing franchisees' sales and profitability. Today, they are equally committed to this, as well as to new growth, which they call their second number-one priority. While our business has evolved, Bazner’s primary responsibilities as CEO remain strategy, people, culture, and communication, while ensuring the organization and all of its stakeholders are focused on our strategic initiatives. A&W’s leadership strategy comprises of Collaboration, people first, doing the "right" thing, respect for others, and data driven wherever possible.
What's A&W's Strategic direction?
A&W's goal is to become a thriving second-century brand, creating a replicable growth path that will sustain the company for another 100 years. They are focused on an accelerated growth plan with a goal of adding another 50 to 75 restaurants per year to the pipeline, with a continued focus on growing profitable same store sales. A&W founders pointed them in the right direction in terms of environmental responsibility. With their reusable glass root beer mugs, they have been reducing waste at the source since their inception. They recognized that environmental responsibility was important to their franchisees and their guests, so they officially created an Environmental Leadership strategy in 2009.”
In 2012 they introduced beef raised without the use of hormones or steroids. They spent several years beforehand preparing and working with their partners and ranchers to guarantee continuous supply for a nation-wide roll out. They introduced ceramic plates and stainless steel cutlery in 2014 in all of their restaurants that have their own dining rooms over 560 restaurants across the country. Food court locations that are unable to implement the reusable packaging use compostable plates instead. They have made many changes to their packaging in the last few years in an effort to reduce their waste to landfills. One of the biggest changes was the switch from foil burger bags to compostable paper bags. A recent waste audit showed that only 12% of waste in their restaurants is true landfill waste, everything else is compostable or recyclable. But their goal is to eliminate waste completely.