A&W began in 1919 in Lodi, California, when Roy Allen took on partnership with Frank Wright to help him with the root beer business he had started that year. They branded their product A&W Root Beer after their last names. Two years later, Allen bought out Wright and began franchising his product. His profits came from a small franchise fee and concentrate sales.
By 1960, they had 2000 stores. In 1971, a beverage division was started, supplying bottled A&W products to grocery stores. The soft drinks sold under this brand are root beer and cream soda, made by Dr Pepper/Seven Up, Inc. For some time in the 1970s, A&W was larger than McDonalds. Oshkosh, Wisconsin franchise manager Jim Brajdic said: "Problems back then, including a lawsuit, franchisee discontent and inconsistencies in the operation, caused the chain to flounder and branches to close."
In 1989, A&W made an agreement with Minnesota-based chain Carousel Snack Bars to convert that chain's 200 locations (mostly kiosks in shopping malls) to "A&W Hot Dogs & More". Some A&W Hot Dogs & More locations are still in operation today. In late 2000s, A&W started adding some new franchises with a nostalgic look and modern technology inside. They have a carhop design with drive-thrus and some have picnic tables.
In the United States and Southeast Asia, A&W is currently a Yum! Brands, Inc. company. Most A&W locations that have opened in the U.S. in recent years have been co-branded with one of Yum!'s other chains—Long John Silver's, Pizza Hut, Taco Bell, or Kentucky Fried Chicken.
