American fast-food chain A&W, best known for its signature waffle burgers, “aromatic” fried chicken and root beer, has been hit by two years of recurring Covid-19 restrictions and the brand’s local franchisor Global Consumer or Global Consumer . Glocon’s losses rose sharply. Local media quoted Glocon CEO Nopporn Phatthararuchi as saying that the doors of all 26 A&W restaurants will be closed simultaneously on March 20, ahead of the March 31 license expiration date. Currently, Glocon is seeking the approval of…
American fast-food chain A&W, best known for its signature waffle burgers, “aromatic” fried chicken and root beer, has been hit by two years of recurring Covid-19 restrictions and the brand’s local franchisor Global Consumer or Global Consumer . Glocon’s losses rose sharply.
Local media quoted Glocon CEO Nopporn Phatthararuchi as saying that the doors of all 26 A&W restaurants will be closed simultaneously on March 20, ahead of the March 31 license expiration date. Currently, Glocon is seeking approval from its board of directors, which is seen as a formality.
The company has notified A&W employees in advance of the closure and paid compensation under labor laws, the sources said.
However, according to nation3 major grocery chains are in talks with Glocon for a possible 500 million baht acquisition of the A&W franchise.
trapped in red
According to Glocon’s last annual report, A&W stores in Thailand suffered an operating loss of more than 70 million baht ($2.21 million) in 2021 alone. Sales last year were less than 100 million baht ($3.02 million), down from nearly 200 million baht in 2018.
The company said that despite efforts to pursue new strategies to boost profits, including selling products through food trucks at gas stations rather than traditional restaurants, and selling waffles at convenience stores to expand its customer base, losses continued due to most A&W locations. Accumulated stays in malls, which were closed for a long time during the peak of the Covid-19 pandemic.
The company’s woes have been further compounded by a sharp drop in foreign tourist arrivals due to border closures and a recent rise in raw material and energy costs due to the Russia-Ukraine war.
The A&W brand has a presence in Southeast Asia in Singapore and Malaysia.
