The fast food chain that introduced Malaysians to root beer float may be up for sale.
KUB Malaysia, the owner and operator of A&W Malaysia, has announced that they are open to selling the chain if “the price is right.”
“We have obtained several proposals for our A&W business,” said Datuk Abdul Rahim Mohd, managing director, KUB Malaysia. “We are presently evaluating — it depends on the right price. If the right price comes, we are open to it.”
A&W arrived in Malaysia in 1963 and was the first fast food chain in the country. In 2001, KUB Malaysia took over the chain, closing some locations and expanding into more urban area codes. As of today, there are 27 A&W outlets in the country.
Last year, KUB said that it will initiate a 3-year plan to expand the A&W brand, which includes a RM25 million (USD5.8 million) reinvestment and opening of eight new locations by 2019.
“My rationale is capital rationing. If the right opportunity presents itself we will make a call on whether or not we can continue with this business or to invest more in the other sectors that provide better, quicker or larger financial returns for us,” Rahim adds.
Currently, the company is waiting for approval from Petaling Jaya Council (MBPJ) to redevelop the iconic A&W restaurant in Lorong Sultan. KUB intends to turn the space into an office and retail tower.