Business Category: Franchise, Other Eating & Drinking Places, and Restaurants
Listing Price: $850,000
Cash Flow: $240,000
Equipment Value: $75,000
This 70+ year-established A&W restaurant is highly profitable and situated in an excellent Northern Iowa small-town location, with proximity to two major highways and very low competition.
A&W is an iconic brand emblematic of American values and simpler times. Their menu is filled with the classics including hot dogs, burgers, shakes, and of course, A&W Root Beer.
The Owner purchased the Franchise in 2016. After doubling its sales and increasing its standing in the community, he is seeking to pass it onto new ownership in order to pursue other interests.
The Restaurant’s location offers a community of loyal customers and multiple annual events, as well as proximity to a major highway, making it a popular pit stop for hungry travelers. The Restaurant also experienced an increase in sales through the pandemic, even as they have been drive-through only. Ownership took advantage of this time to remodel their dining room and update their kitchen equipment and drive-through menu board to Franchise standards.
Opportunities For Growth:
(1) Addition of Food Truck: The town has many annual events that bring in an influx of people. New ownership could increase revenue by acquiring a food truck and getting right into the middle of the action to serve hungry festival attendees.
(2) Permanent Patio: The addition of a patio would allow the Restaurant to accommodate more customers in the warmer months, as well as provide pandemic-safe seating while the dining room is closed.
(3) Online Ordering: New ownership could partner with delivery apps to make their products more available and boost sales.
(4) Expansion of Drive-Through: The Restaurant has been drive-through only throughout the pandemic and has still seen an increase in sales. Adding an additional ordering lane would allow the Restaurant to fill orders more quickly and serve more customers.
(1) Small Town Strength in a High Traffic Area: The restaurant operates in a strong, small town market where the A&W brand has thrived for its 72 years of operation.
(2) Prime Vendor Relationships Keep Supply Costs Down: A&W franchise partners can tap into significant discounts on food, janitorial supplies, and equipment. Their extensive network keeps distribution costs from spiraling, and the system overall helps A&W operate with wider profit margins.
(3) Profitable and Turnkey: The Restaurant is highly profitable and has a newly remodeled dining room with updated kitchen equipment and drive-through menu board, allowing a new owner to focus on further growth.
(4) Raving Reviews & High Ratings: Strong customer reviews keep clientele coming back and also serve to bring in more new customers.
Real Estate Value: $200,000
Real Estate Available: For Sale - Included in Asking Price
Reason For Sale: Other interests.
Number of Employees: 28