Competitiveness: Malaysian firm plans sell stake in A&W franchise to double Thai outlet to 100

Too bad A&W has just great root beer and not real

  • By Pooky, Thai Intel’s economics journalist

Bernama, just reported that KUB of Malaysia, that holds the A&W franchise in Thailand, is looking to sell a 45% stake in its company to venture capitalist, to raise funds to expand its Thai 45 A&W franchise to 100 outlets.

Bernama reports KUB also holds the A&W franchise in Malaysia and had been in some negotiation with interest from KFC.

A&W got its start in America serving food with lots of the quick energy in sugar, for the young and active Americans crowd, often positioning itself near education and sports centers.

A&W in Thailand, have had a mixed results, with some outlets very popular, yet overall, the brand is not as strong as other major brands, such as KFC, McDonalds or Burger King-with A&W offerings, stuck somewhere between a light mean and ice-cream deserts.

That formula, in Thailand, has proved highly successful with children-who often when asked by Thai parents which fast food they like to go to most, A&W have consistently ranked among the top.

However, A&W have so few franchise in Thailand, parents often have to go out of their way to please their children.

And according to market research of Thai franchise industry, Thai parents are increasingly concerned about their children health, particularly the rapid increase of American franchise food consumption.

To some parents in Thailand, A&W has become the place to take their children, when their children deserves a special treat.

A&W in Thailand, apparently recognizes this, as there has been adjustments to its strategy, somewhat, in recent years, focusing on offerings more substantive meals-building up its brand as a place that offers more tasteful Western franchise food than McDonalds, KFC or Burger King.

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