A&W RESTAURANTS: A&W CEO Kevin Bazner Responds to UnhappyFranchisee.com
A&W Restaurants CEO Kevin Bazner responds to UnhappyFranchisee.com, explains the reason for A&W Restaurants 22% SBA franchise loan default rate, and provides an update of the newly acquired franchise company.
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In our post A&W Restaurants Franchise Complaints, we reported that the Small Business Administration listed the default rate of A&W Restaurant franchisees for SBA-guaranteed loans was 22%.
We also reported that 167 A&W franchises (18%) had ceased operation or been terminated between 2008 and 2011, according to A&W’s 2012 franchise disclosure document (FDD).
UnhappyFranchisee.com invites franchisors and individuals to participate in out discussions, and to feel free to rebut, clarify or disprove statements made by us or our commenters.
A&W Restaurants President & CEO Kevin Bazner provided the following statement in response to our post:
As President and CEO of A&W Restaurants, I feel the need to respond to the recent article published on this site.
While SBA did cite data gathered by the Coleman Report, several key points were left out, which made it seem like the A&W Restaurants franchise as a whole has a high loan failure rate. That is simply not true.
The end of the article mentions that A&W Restaurants was purchased by a partnership of franchisees in 2011. It fails to note that the sale was not finalized until December 19th- quite literally the end of 2011. For the majority of the year, A&W was owned by YUM! Brands, who had purchased the company in 2002.
It is also not mentioned that the A&W system as a whole operates in several different arenas: as a base brand, and also co-branded, largely with KFC and Long John Silver’s. Once YUM! announced the plans to sell A&W, a portion of the co-branded restaurants dissolved, choosing to operate without the A&W component. Many of these restaurants had qualified for SBA- backed franchise loans, and are no longer a part of the A&W system, but were included in the data that indicated a 22% loan default rate.
Overall, the A&W Restaurant family is stronger than ever. We have successfully transitioned from YUM! ownership, and have enjoyed seeing positive sales results from our operators.
Our focus for 2012 is simple: to build profitable sales. We are not actively pushing to open more units without thoroughly researching the needs of the market beforehand.
We have an open dialogue with our operators, and have pledged to maintain complete transparency with our franchise partners. As a company, we are committed to providing our operators with all of the tools necessary to make their business profitable, including ongoing training, and marketing and operational support.
We are incredibly proud to be a part of this company, and look forward to growing this brand and increasing the profits of our franchise partners.
President & CEO
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Tags: A&W Restaurants,A&W Restaurants franchise, A&W franchise, restaurant franchise, A&W franchise failures, A&W franchise complaints, A&W franchise problems, YUM Brands, Kevin Bazner, SBA loans, SBA loan failure rates
3 thoughts on “A&W RESTAURANTS: A&W CEO Kevin Bazner Responds to UnhappyFranchisee.com”
I had the awful experience of being involved with this company they lied about every detail of the franchise nobody should ever get involved with these people unless you would like to loose everything you have !! Every number that was given was completely off they lie to get you to sign and then you are nothing but a number !!!
chem dry is the worst franchise in america .they lie about everything to make people sign . I’m pray to God do not make something like this it effecting my relationship right now
Hi Mr Kelvin,
Greeting to you
My name is jolene from Singapore.
I am writting to you with regards to my bad experience that I had encountered when I visited your branch in Jewel Changi Airport.
On 9th Aug, around 9plus in the evening, my friends and I went to have our supper, at the branch, it was quite crowded and we didnt managed to have a table of 9pax. Hence, one of your crew told us that we can have one table temporarily while waiting for the next table customer to leave so that he can assist to join the table.
However, there was another table which was empty and it is across the next waiting table that we want but in between there was a couple sitting having their meal. So we thought we could approached the couple to shift their seating to that empty table so that we could have the table. Therefore, we went to asked the duty manager by the name of Rezal whether can he helped to approach the couple, he was very rude in his attitude and words that he used on us. He replied that this is common sense, they dont ask customer to shift the seating.
We were shocked to hear the rude words ‘common sense’ from the duty manager, he could have politely explained to us and helped us to find ways for seating. But he did not. After telling us off, he went to the back of the collection area.
May I know ask is this the way that your company provide the customer service? Especially from the more senior staff!
We were so disappointed and embarrasses.
As a big organsation of your company, we though every staff had gone through a professional customer service in regardless of the situation is. But t
Is was not what we see in your store.
Please do something and we hipe to see improvement in your staff attitude and service.
I am left my email address in the below box. if you wish to find out more information.