000529 KFC & A&W to Co-Brand 300 Restaurants

Louisville, KY - - KFC Corporation and A&W Restaurants, Inc. announced that the companies plan to test 300 co-branded KFC/A&W units over the next five years. KFC will implement the test throughout the country in both corporately owned KFC restaurants and in those owned and operated by its franchisees. The co-brand concept will place the two famous brand names side by side under one roof.

“Co-branding is a trend that is evolving daily in the quick service restaurant business,” explained A&W President Kevin Bazner. “We believe this is a good fit for KFC, since our All American Menu of hamburgers, hot dogs, our signature A&W Draft Root Beer and A&W Root Beer Floats will compliment the KFC menu. We are extremely excited at the opportunity to partner with a such a famous brand as KFC.”

“We think that this program could facilitate growth for both brands,” said Chuck Rawley, KFC President and COO. “In the past, co-branding has provided benefits that translate into a win across the board -- customers win, franchisees win and companies win.”

Founded in 1919 and headquartered in Farmington Hills, Mich., A&W restaurants currently operates more than 1,000 units in 48 United States and 17 foreign countries. In 1999, the A&W parent company, Yorkshire Global Restaurants acquired Long John Silver's, Lexington, KY, the world's largest seafood chain. Together, the combined operations have more than 2,200 units and annual sales of $1.3-billion making it the 14th largest QSR.

KFC, based in Louisville, Ky., is the world's most popular chicken restaurant chain specializing in Original Recipe Extra Crispy and Colonel's Crispy Strips chicken with homestyle sides and five freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving customers delicious, already-prepared complete family meals at affordable prices. There are nearly 10,800 KFC outlets in 90 countries and territories around the world serving some 8 million customers each day.

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