Each year a handful or two of nationally-recognized brands don’t live to see the new year. With a tough economy the number of disappearing companies has multiplied these past few years. 24/7 Wall St. (a financial news and opinion resource) annually compiles a list of those they feel won’t make it past the end of the year. This year A&W All-American Food Restaurants made an appearance in the top ten.
24/7 Wall St. once again published their list of brands that they feel will no longer exist next year. They base their predictions on the following:
* A rapid fall-off in sales and steep losses
* Disclosures by the parent of the brand that it might go out of business
* Rapidly rising costs that are extremely unlikely to be recouped through higher prices
* Companies which are sold
* Companies that go into bankruptcy
* Firms that have lost the great majority of their customers
* Operations with rapidly withering market share
Their predictions have not been too far off with industry giants like Blockbuster and T-Mobile (both named on last year’s list) biting the dust.
This year’s list names Yum! Brands franchise A&W Restaurants as a brand that will no longer exist within the next 18 months. Although the company has been up for sale since early this year, no buyers have been named. They said that A&W All-American Food restaurants (as well as Long John Silver’s which is also up for sale) no longer fit into their long-term strategy. Yum! Brands is trying to focus on overseas markets, specifically China. A&W have a minimal presence outside of the U.S. and none in China.