A&W Restaurants Income Fund (AW.UN) to Home Grow?

A&W Revenue Royalties Income Fund (TSX:AW.UN) announced on January 22, 2010 that they plan to continue the expansion of their restaurant base.  In the article produced via NewsWire, the emphasis seems to be on Ontario and Quebec, but from what I have seen over the past year this is only the tip of the iceberg.

Graham Cooke, Vice President of New Restaurant Expansion recently stated “We’re proud to say that we have reached 150 restaurants in Ontario…” and “At the same time, we successfully launched our multi-site franchise development program, targeting Ontario first and then Quebec in 2010″.  This sounds fine and dandy, but what I am about to reveal will provide evidence that the companies plans remain far more encouraging than this back east buzz.

Mr. Cooke also was quoted in the article saying “Last year’s introduction of the multi-site development program is a game changer for us. Since the launch, we have secured commitments for 60 new locations in Ontario alone. These will translate into new freestanding restaurants over the next 3-5 years. The good news is that we’re really only getting started”.

Sure, Ontario is a huge province with a grand population base, and so is Quebec, but let’s think outside the bun for a minute.  Are there any provinces out there with net immigration?  Maybe there is a province with a city that’s been named one of the most desirable places in the world to live.  If you are thinking beautiful British Columbia, with the outrageously unaffordable property market of Vancouver than you are correct.

A little birdie, the UBC Sauder School of Business Careers Website, has produced enough evidence to infer that Western Canada may be a major source of the expansion plans for A&W Restaurant Franchises Going Forward.  There have been at least 4 positions focused on Real Estate in BC posted on the Sauder Website over the past year by Janet David & Associates, HR Hunters for A&W Corporate.  Any chance that A&W, based out of North Vancouver, is looking to seize the opportunity to grow in their own back yard?

Just looking at the Vancouver market alone I can see a number of retail spaces for potential flagship stores to compete eat up some of McDonald’s and Wendy’s market share.  Anyone heard of Cambie Street where the infamous Canada Line Construction changed the landscape of Vancouver and caused major turbulence within the retail property market?  Most of the new high foot traffic station locations are begging for A&W outlets.  Don’t be surprised if you see A&W’s popping up all over BC.

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One Response to A&W Restaurants Income Fund (AW.UN) to Home Grow?
  1. The Rat
    January 29, 2010 | 11:08 pm

    I have some shares in AW.UN and I have to say I was pleased with the position from a diversification standpoint and it provides a good avenue for income at the same time.
    Nice thread

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