Chapter 3 The Company

3.1 Company Overview

The A&W franchise was brought into Malaysia in 1963 by Mr and Mrs Lie Boff from USA. The Lie Boff family opened their first outlet in Jalan Tuanku Abdul Rahman making it the first fast food outlet in Malaysia. This was followed in 1965 with the first Drive-in restaurant in Petaling Jaya. A&W Malaysia was bought over by KUB in 2001, and in 2008 embarked on an aggressive expansion drive to revamp and expand its reach. A&W Malaysia is committed to provide their customers with safe, delicious meals and operating restaurants that meet the highest food safety standards.

3.2 Business Description

A&W offers drive-up service in addition to dine-in seating, provide a menu featuring hamburgers, hot dogs, onion rings, and fries, along with its signature root beer. A&W traces its roots back to a California root beer stand business started by Roy Allen in 1919.

3.3 Company History

A&W Restaurants, Inc is a chain of fast-food restaurants, distinguished by its draftroot beer and root beer floats. A&W was arguably the first successful food franchise company, starting franchises in 1921 in California. Today it has franchise locations throughout the world. It serves typical fast food menu burgers, French fries as well hot dogs. The company name was taken from the last name initials of partners, Roy Allenand and Frank Wright. In 1963, Mr and Mrs Lie Boff from USA brought the first A&W franchise into Malaysia. The Lie Boff family opened their first outlet in Jalan Tuanku Abdul Rahman making it as the first fast food outlet in Malaysia. The most famous A&W outlet with the first Drive-in restaurant in Petaling Jaya, a satellite city of Kuala Lumpur opened in 1965 and quickly became a favourite gathering place for students, especially from the nearby Assunta and La Salle Secondary Schools. The unique A&W root beer mug was often “collected” by these young customers. It was the filming location for Malaysia movies during the 197-s and early 1980s. Customers from the 1970s will recall Tuesdays as Coney Dog Day. During the mid-1980s, A&W also operated a second Petaling Jaya outlet at the Atria Shopping Complex in Section SS22 Damansara Jaya. In Penang, A&W had an outlet at KOMTAR and Penang International Airport and has close down. Another new store has been opened at malls around Penang. During the 1990s, A&W operated an outlet at Terminal 3 of the former Subang International Airport. This outlet ceased operations when the Kuala Lumpur International Airport shifted from Subang to KLIA in 1998. To date, several more A&W outlets have been opened, mostly in shopping malss. An A&W outlet opened for a number year in Likas Square, Kota Kinabalu but was close down in 2004.However, A&W had a declining business era from 1997 - 2000. A&W Malaysia was bought over by KUB in 2001. KUB is the licensee of A&W in Thailand and Malaysia since 2002. Currently, it has 40 outlets in Malaysia and 40 in Thailand. KUB was currently undertaking a corrective strategy and reviewing the performance of each outlet. Any outlet that is not making money will be shut down or relocated. A&W need to be business and bottom line-drive.

3.4 Key People

· Director Operations/ Administrations.

KUB Malaysia Sdn Bhd

· Group Managing Director

Wan Mohd Nor Wan Ahmad

3.5 Location and Subsidiaries

Location

Head office: A&W (Malaysia) Sdn Bhd

1 Jalan Selukat 33/27, Shah Alam

Technology Park, Section 33,

40400 Shah Alam, Selangor.

Phone No: 603 - 51227770

Fax No: 603 - 51227771 

1. Alamanda
2. Nilai Avenue 
3.  Batu Road
4. Petaling Jaya
5. Batu 3, Shah Alam
6. Petronas Service Station Batu3
7. Seksyen 7, Shah Alam
8. PSS Jalan Plumbum, Seksyen 7
   40000 SHAH ALAM
9. Seremban
10. Pekan, Pahang
11. Jusco Permas Jaya, Johor Bahru
12. Zoo Melaka
13. Melaka
14. Sungai Buloh
15. Kota Damansara
16. Equine Park, Seri Kembangan
17. Damai Perdana
18. Mahkota Cheras
19. Pantai Batu Buruk, Kuala Terengganu
20. Bandar Kinrara, Puchong
21. Dataran Pahlawan, Melaka 

3.6 Brands, Major Products and Services

A&W is subsidiary of KUB Malaysia Bhd in 2001. A&W is the first fast food restaurant which entered Malaysia in early 1919. A&W serves typical fast food menu of burgers and onion fries, as well as hot dogs. Their signature “A&W Root Beer” is made from real cane sugar and a proprietary blend of herbs, bark, spices and berries where the mug would be kept in the freezer prior to being filled with root bear and served to the customer. Other than that, they also serve sweet and treats like waffle and ice cream. It provided dine-in, take away and delivery services for customers.

3.7 Corporate Vision

A&W has a rich history of bringing people together to share great food, great root beer & friendly hospitality. It’s this combination of friendly people of All-American Food that build our legend.

3.8 Corporate Mission

- To build a stronger brand identity and brand awareness level with the support of advertising and promotion.

- Constantly improving and optimizing the resources in existing outlets to better serve its customer

- Reinventing fresh new menus to attract the new market consumers.

3.9 Company’s Current Promotional Strategy

2011

- Double Fortune Burger Contest

- Golden Aroma Chicken Combo Promotion

- XXXtra Hot Sauce Combo

- XXXtra Long Coney Dog Combo Promotion

- Tangy Duo Promotion

- Story Contest

- New Year Prosperity Promotion

2012 Current

- Sen Savers Rm2.80 lunch value

3.10 Product Sales History

A&W contributed about RM60 million in term of revenue to KUB, which posted revenue of about RM800 million last years, announced by Group managing director, Datuk Wan Mohd Nor Wan Ahmad. KUB posted a net loss of RM61.86 million for financial year ended Dec 31, 2011 compared to a net profit of RM11.48 million in 2010. 

3.11 Current Marketing Objective
 

Short Term:

- Undertaking a corrective strategy and reviewing the performance of each outlet. Any outlet that is not making money will be shut down or relocated.

- Establish back the brand identity by having more advertising to compete with other fast food restaurant.

- Maintain A&W loyal customers and tackle new segments like teenagers, youngsters and lower-middle income earners via value treats. 

Long Term:
- Increasing the domestic demand through expanding the outlets and product diversification

- Improve on the advertising and marketing strategy to create awareness for public to after they relocated or open new outlets in Malaysia.

- KUB targeted to list A&W on Bursa Malaysia in 2014 or 2015.

3.12 Media Expenditure 

Currently A&W advertising is not strong enough compared to their competitors and they only focused in few medium of advertising. Lately when KUB Sdn Bhd announced that they are planning to close down 24 outlets in Malaysia, it is getting less advertising about their brand in market. Meanwhile they just spread the news through social network and flyers.