American fast-food chain A&W, which is known for its frosty mugs of root beer and waffles, is planning to close all its branches in Thailand after suffering huge losses since the arrival of the Covid-19 pandemic.
The legendary A&W fried chicken restaurant chain is to close on March 20 after almost four decades, after its SET-listed parent Global Consumer Plc (Glocon) threw in the towel because of accumulated losses and the impact of the Covid-19 pandemic.
In this regard, Global Consumer Plc. is in the process of presenting a request for the termination of A&W business to the Board of Directors. Currently, all 26 A&W stores are still serving as usual. And can order through delivery. The A&W business in Thailand will cease operations. or there are further acquisitions that need to be followed up
A sales representative at an A&W restaurant in a Bangkok petrol station, who asked not to be named, said the company had informed A&W’s staff in advance about its closure, with compensation paid by labour laws.
The doors of all 24 A&W restaurants will simultaneously close on March 20, confirmed Glocon chief executive Nopporn Phatthararuchi, but its licence to operate them will expire on March 31.
However, according to a Nation Thailand source, there are 3 large food chains in talks with Global Consumer about purchasing the A&W franchise. The deal is thought to be worth around 500 million baht and could be finalised this month.
The A&W fast-food chain started life as a roadside shack in the city of Lodi, California in 1919. Its famous root beer was concocted for the first time on a hot dog cart during a parade. The shack became a restaurant in 1923, with the first branch opening in Sacramento, and by 1926, A&W had quickly grown into a franchise. The chain now has around 1,000 branches worldwide and opened its first Thai outlet in the Central Ladprao shopping mall in 1983.
In related news, mounting losses have driven the board of Global Consumer Plc to approve the sale of the 2 remaining outlets of Kitchen Plus Restaurant and Coffee Corner.