A&W opens in c-store space in Hot Springs, Arkansas

A&W Restaurants has added another location to its convenience store footprint with a unit in Hot Springs, Arkansas. Located in a small strip center that includes a gas station, the restaurant features a drive-thru and 45 seats. Franchisee Mohammad Lone converted an independent restaurant to an A&W, according to a press release.

There are nearly 100 A&Ws located in gas and convenience stores and travel centers. C-store unit sales through September are up 11%, following a six percent annual increase last year.

A&W is seeing a big uptick in interest from c-store operators, CEO Kevin Bazner said in the release. Some are looking to convert non-branded food operations to A&W, while others are exploring leasing space to A&W franchisees. The chain has commitments for 22 restaurants, with at least nine expected to be C&Gs. Locations in California and Arizona are scheduled to open before the end of the year.

"C-store retailers are rethinking their businesses, and, at the same time, there are significant headwinds that make building new freestanding restaurants difficult," Bazner said in the release. He added that A&W is taking a two-prong approach to developing convenience store locations. "We're working with current c-store operators to bring the A&W brand to their communities, while also helping prospective franchisees find sites to build an A&W. Given the high cost of real estate and how long it takes to get a traditional location permitted and built, c-stores are a very cost-effective alternative."