A&W and Pret A Manger Agree on Long Term Development Plan
VANCOUVER, BC, May 27, 2024 /CNW/ - A&W Revenue Royalties Income Fund (the "Fund") (TSX: AW.UN) and A&W Food Services of Canada Inc. ("Food Services") announce that Food Services and Pret A Manger (Europe) Limited ("Pret") have agreed on a development plan to expand the Pret brand across Canada following the completion of a successful two year trial period first announced on June 2, 2022. Food Services has exclusive master franchisor rights to Canada for the Pret brand and will introduce Pret's products to Canadian consumers in a variety of carefully selected formats, beginning with a national roll out of Pret coffee in A&W restaurants this fall.
The Pret brand was first offered in a trial pop-up format in certain A&W restaurants in 2022, and expanded to a first stand alone Pret location in downtown Toronto in 2024. The development plan calls for Food Services continuing to increase the number of physical locations offering Pret products across Canada over an initial ten-year development term. Sales of Pret products within A&W restaurants in the Royalty Pool will be subject to the 3% royalty paid by Food Services to the Fund.
The Fund is a limited purpose trust established to invest in A&W Trade Marks Inc., which through its interest in A&W Trade Marks Limited Partnership (the Partnership), owns the A&W trademarks used in the A&W quick service restaurant business in Canada. In return for licensing Food Services to use its trademarks, A&W Trade Marks Inc. (through the Partnership) receives royalties equal to 3% of the gross sales reported by A&W restaurants in the Royalty Pool.
A&W Food Services of Canada Inc. is a corporation amalgamated under the laws of Canada and is 100 per cent Canadian owned and is one of the strongest brand names in the Canadian foodservice industry. A&W is the nation's second largest hamburger restaurant company with over 1,000 locations coast-to-coast. A&W Restaurants feature famous trademarked menu items such as The Burger Family®, Chubby Chicken®, and A&W Root Beer®. For more information, please visit www.aw.ca.
Pret A Manger is a beloved sandwich and organic coffee chain commonly referred to as Pret and based in the United Kingdom. The first shop opened in London in 1986 where the company is headquartered today. Pret's sandwiches, salads and wraps are freshly handmade each day in shop kitchens using quality ingredients and all coffees, teas and hot chocolates are organic. Pret operates more than 650 shops worldwide with more than 9,500 team members in 18 markets (United Kingdom, Ireland, United States, Hong Kong, France, United Arab Emirates, Kuwait, India, Luxembourg, Switzerland, Belgium, Singapore, Germany, Canada, Italy, Spain, Qatar, Greece). For more information, please visit www.pret.com.
Certain statements in this news release may contain forward-looking information within the meaning of applicable securities laws in Canada (forward-looking information). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking statements include statements with respect to the expectation that: Food Services will introduce Pret's products in a variety of formats beginning with a national roll out of Pret coffee in A&W restaurants this fall, and Food Services increasing the number of physical locations offering Pret products across Canada over an initial ten-year development term.
The forward-looking information is based on assumptions that management considered reasonable at the time it was prepared. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by the forward-looking information.
SOURCE A&W Revenue Royalties Income Fund
For further AW.UN Investor information: Kelly Blankstein, CPA(CA), CFO, email: [email protected] www.awincomefund.ca
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