Becoming A Full Fledged Foodservice Organization

Three years later, both-A&W and J. Hungerford Smith Company were purchased by United Fruit Company of Boston. In 1970, United Fruit was acquired by The AMK Corporation, who formed the new corporation, United Brands Company. Within this structure the A&W Root Beer Company adopted a new trademark, changed it's name to A&W International, Inc. and began the process of becoming a full-fledged restaurant and foodservice organization.

Many innovative changes were instituted. One was the formation of the National Advisory Council of the National A&W Franchisees Association (NAWFA). This elected board marked the first time in fast food industry history that franchisees had a voice in the formation of their contract, a move Ralph Nader lauded as being one of the fairest in the industry.

 The new contract featured a revised royalty agreement. While corporate profits would continue to benefit from the sale of new franchises, other revenue would no longer be generated from the sale of beverage equipment and food items, the new agreement held that each franchisee's royalty fees would be based on a percentage of their restaurant sales. The corporation was now profitable in direct relation to the success of the chain.

Other changes included the expansion of a nationwide distribution network allowing franchisees to purchase concentrates, food items, paper goods and glass mugs. And, programs offered by the corporation were revamped to suit franchise needs - training, marketing, accounting, product development, bookkeeping systems, building design and equipment layout.

America loved the taste of A&W Root Beer. So, in 1971, United Brands formed a wholly-owned subsidiary, A&W Beverages, Inc., for the purpose of making A&W Root Beer available on the grocery shelf. First introduced in Arizona and California, the cans and bottles of A&W Root Beer was an instant success. Retailers nationwide were soon carrying the product.

In 1974, A&W Beverages, Inc. introduced A&W Sugar-free Root Beer and their goodwill ambassador, The Great Root Bear. This life size, loveable mascot has been charming children and adults at grand openings, parades, fairs and community visits ever since.

A standard core menu for the restaurants was introduced in 1978. It was the first time in A&W history that there was a consistent menu offering, And, it was at this time that A&W Restaurants, Inc., the wholly owned restaurant franchise subsidiary was formed.

The corporation launched a new restaurant concept in 1978, The A&W Great Food Restaurant. A modern upscale concept, these facilities featured fresh 1/3 and 1/2 pound 100% pure beef hamburgers, salad bars, ice cream bars and of course A&W Root Beer in a frosty mug. This concept was perhaps ahead of its time, and while they still exist, they have been reformatted to blend in with the current chain wide concept - a modem, comfortable fast food environment at competitive prices serving the finest quality food.

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