A&W Malaysia allocates RM22m capex to open 20 outlets this year

KUALA LUMPUR (Jan 10): A&W Malaysia Sdn Bhd is allocating RM22 million in capital expenditure (capex) this year to open 20 new outlets across the country. There are currently 49 A&W outlets nationwide.

A&W Malaysia chief executive officer (CEO) George Ang said the capex allocation stays roughly the same each year until 2024.

“This is in line with the company’s plan to expand and open as many as 124 outlets by 2024, to emerge among the top three fast food players in Malaysia and the number one quick-service restaurant that Malaysians crave for,” he told reporters, after the signing of a development agreement between A&W Malaysia and A Great American Brand International (AGABI) today.

“Since the acquisition took place two years ago, a series of value- and service-enhancing initiatives have been rolled out, paving
the way for us to achieve sales of RM90 million last year, up from RM70 million recorded in 2018," he said.

This year, it is aiming for a sales target of RM110 million.

Ang, through his private investment vehicle Inter Mark Resources Sdn Bhd, had in September 2018 acquired A&W Malaysia from KUB Malaysia Bhd for RM34 million.

Under KUB, A&W Malaysia had closed down 26 loss-making outlets nationwide in 2012, as a part of the company’s recovery effort.

Earlier, under the development agreement with AGABI, A&W Malaysia aimed to expand the number of outlets nationwide to 124 within five year.

Signatories to the agreement were Ang and AGABI managing director Martin Lim. The event was also witnessed by US-based A&W Restaurants Inc global CEO Kevin Bazner and the US Embassy deputy chief of mission Dean Thompson.

Bazner recognised strong consumer affinity towards A&W in Malaysia, and is confident the company’s development plans will reap
positive results for its top- and bottom lines.

“Having celebrated 100 years globally was a commendable milestone. I am proud to see A&W Malaysia has now conceptualised plans to leverage on its rich heritage and legacy in Malaysia for a successful comeback. I must acknowledge that A&W Malaysia should be applauded for its commitment to reinvest and grow the brand,” he said.