A&W Food Services of Canada and Pret A Manger (Europe) have announced a development plan to expand the Pret brand in Canada, following a successful two-year trial that was first announced in June 2022.
Holding sole master franchisor rights to Canada for the Pret brand, A&W Food Services of Canada will launch Pret’s products to Canada in a range of selected formats, starting with a country-wide roll out of Pret coffee in A&W restaurants this fall (September to November).
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The Pret brand was initially delivered in a trial pop-up format in some A&W restaurants in 2022, and later expanded as a first standalone Pret location in downtown Toronto this year.
The development plan looks at A&W Food Services of Canada continuing to expand the count of offline locations offering Pret products across Canada over an initial ten-year term.
Sales of Pret products within A&W restaurants in the royalty pool will be subject to the 3% royalty paid by A&W Food Services of Canada to the A&W Revenue Royalties Income Fund.
A limited purpose trust, A&W Revenue Royalties Income Fund has been set up to invest in A&W Trade Marks, which via its stake in A&W Trade Marks Limited Partnership, owns the A&W trademarks used in the A&W quick service restaurant business in the country.
In exchange for licensing A&W Food Services of Canada to use its trademarks, A&W Trade Marks (via the A&W Trade Marks Limited Partnership) gets royalties equal to 3% of the gross sales posted by A&W restaurants in the royalty pool.
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By GlobalDataA&W is Canada’s leading hamburger restaurant company having more than 1,000 outlets. A&W Restaurants have trademarked menu items such as Chubby Chicken, The Burger Family, and A&W Root Beer.
Based in the UK, Pret A Manger is a sandwich and organic coffee chain. Its first shop opened in London in 1986. Pret’s sandwiches, salads and wraps are handmade every day in kitchens using ingredients while its coffees, teas and hot chocolates are claimed to be organic.
Pret operates more than 650 shops across the world in 18 markets including UK, Ireland, US, France, UAE, Kuwait, India, Luxembourg, Switzerland, Belgium, Singapore, Germany, Canada, Italy, Spain, Qatar, Greece.
Last year, A&W launched three frozen lemonades in Canada for the summer season (June to September).
