Source: QSR Magazine
From small-town memories to CEO, Betsy Schmandt is steering the 106-year-old brand toward modernization, Midwest expansion, and sustainable franchise growth.
From sipping Root Beer Floats during her small-town Ohio childhood to stepping into the CEO role at one of America’s most nostalgic brands, Betsy Schmandt is ready to lead the next chapter of A&W’s century-long legacy.
In an era where the road to the CEO chair is increasingly nontraditional, Schmandt’s journey is no exception. A significant portion of her career was spent in food and beverage licensing, but she made the jump into restaurant franchising eight years ago with Mrs. Fields and TCBY, leading their innovation and modernization efforts.
That initial foray into franchising taught Schmandt three fundamental lessons: respect every team member’s unique perspective, default to inclusion, and use communication as a tool to engage and make everyone feel invested in the business.
“Franchising is a team sport, and every aspect of a restaurant is interconnected. It’s important that people not only know what you’re doing, but why,” Schmandt says. “The volume of communication often decreases from headquarters out to a franchise organization, so you need to mitigate that. Franchisees are entrepreneurs; they are independent business owners, and you need to make sure their voices are heard.”
Schmandt is also naturally curious. She believes it’s essential to seek out and explore others’ opinions to understand their perspective—and how her decisions will impact them. By asking thoughtful questions and incorporating others’ voices into her strategies, she’s been able to spearhead product innovation, spot white-space opportunities, and deploy efficient go-to-market ideas.
By 2023, she had joined A&W Restaurants, serving as COO and president of the 106-year-old company, bringing those leadership lessons with her. While she led day-to-day operations and aligned the brand’s long-term strategic goals, she also got comfortable on the front lines—building burgers, dropping fries, and serving Root Beer Floats. By stepping into the shoes of team members and franchisees, she quickly put her finger on the pulse of A&W’s culture, traditions, and critical business needs.
In March, Schmandt was named CEO and immediately began elevating and enhancing the brand’s value proposition. A&W has been a staple of U.S. fast-food culture for over a century, embedding itself into countless fond childhood memories—but in a changing world, how does it stay relevant?
“It’s a question we ask ourselves frequently. We are proud of our legacy and want to continue seeing generations of family members enjoying our food and beverages, but we want to make sure we are around for another century,” Schmandt says. “We are focused on modernization in our operations and business. We must keep up with customers’ expectations. We can’t live and operate in the past, and we certainly can’t leave our franchisees behind.”
The first step toward the future of A&W, naturally, involves a refreshed tech stack. The brand is rolling out a systemwide technology upgrade that enables enterprise-wide reporting, integrated online ordering, self-ordering kiosks, and more. Loyalty and gift cards are next on the horizon.
From a growth perspective, Schmandt is doubling down on the brand’s longstanding partnerships with both domestic and international franchisees. A&W isn’t new to worldwide growth—it began in Canada in the 1950s and has since expanded to Malaysia, Singapore, Indonesia, and Japan. These countries have been blending American and local flavors for over 40 years, a testament to the brand’s longevity.
The U.S. growth strategy focuses on increasing sales and profits in freestanding drive-thrus across key Upper Midwest markets: Wisconsin, Michigan, and Minnesota. Schmandt isn’t closed off to other markets or nontraditional locations, such as travel plazas—she sees those as great options for new franchisees looking for lower operational costs and for customers seeking A&W in areas outside of the brand’s core footprint.
“We have slightly different tactics, whether it’s international or domestic, but we are focused on our small-town strategy,” Schmandt says. “Freestanding drive-thrus, particularly in the Midwest, are the key for continued growth.”
Scaling a 106-year-old chain comes with quirks, but Schmandt leans on her guiding principles. Some restaurants date back to the 1930s and have developed unique menu items over the years. While these items make locations special in their communities, they create inconsistencies that complicate unified POS systems. But instead of scrapping operators’ ideas, she finds ways to incorporate them. It’s a delicate balance between preserving heritage and creating a cohesive, scalable business model.
“We addressed this hiccup by bundling these items as hometown favorites on the menu. Operators can continue to offer those legacy items, and customers can understand that these are hyper-local,” Schmandt says. “Moving forward with new restaurants, we are focused on simplicity and a tighter menu, but we are respecting the heritage of our legacy locations, our franchise partners who know their markets best, and the loyal customers who’ve been coming for a long time.”
Supporting and connecting with franchisees across nearly 1,000 locations in 16 countries—especially when those franchisees own the chain itself—is another nuance. Alignment with the National A&W Franchisees Association (NAWFA) is critical. Communication through board meetings, newsletters, webinars, direct conversations, site visits, and conventions helps build relationships and trust, values that Schmandt champions. Since her appointment, she’s hit the road to visit as many franchisees as possible, including second- and third-generation owners who have kept the brand’s heritage alive.
“We practice intentional inclusion. Everyone who touches the A&W brand has a seat at the table and will feel valued, respected, and welcomed—whether they are franchise partners, suppliers, or distributors,” Schmandt says. “The idea is to have flexibility, equity, and inclusion deeply baked into our culture instead of being a KPI or a number to hit.”
As A&W looks ahead—recently ranking No. 60 on Entrepreneur’s Top 150 Food Franchises for 2025—the focus is on building and enhancing the brand’s long-term value proposition around quality, which Schmandt says “floats above the rest.” She is reviewing every touchpoint—from food to service to environment—to measure A&W not only against competitors, but against its standards, ensuring customers can see, believe, and feel the difference.
“We have an opportunity to build this brand back to its heyday. I know consumers love the brand. We feel very strongly that now more than ever we can provide an opportunity for entrepreneurs to join us, and we have plenty of green space for new, profitable restaurants in our system,” Schmandt says. “We see that smart, sustainable growth is happening over the next three years. And if we get that right, in the five years after that, we’ll see a resurgence in the brand.”
