On
June 20, 1919, while the citizens of Lodi, California held a
parade honoring the returning World War I veterans, a young
entrepreneur named Roy Allen would set up a roadside drink
stand to cure the thirst of the spectators. His new thick
and creamy drink concoction, root beer, was an instant
success at a nickel per glass mug. In the 80 years that have
passed, little did Allen know that his roadside drink stand
would turn into a multi-million dollar international soft
drink business.
So positive was the customer response for his root beer
beverage that Allen immediately took on his first partner,
Frank Wright. In 1922, Allen and Wright combined their
initials "A" for Allen and "W" for Wright to formally name
the beverage, A&W Root Beer. The letters "A" and "W" would
appear on the glass mug for the first time.
With his drink stand success, Allen wasted little time in
opening his first permanent root beer stand in Lodi. He soon
followed with a second stand in nearby Sacramento where the
country's first "drive-in" featuring "tray-boys" for
curbside service, opened. The A&W Root Beer stands success
grew rapidly as two more units were opened in Sacramento.
In
1924, Allen bought Wright's share of the business to
actively pursue a franchise sales program. With the A&W Root
Beer name trademarked with the U.S. Patent and Trademark
office, Allen began selling franchises to others. It enabled
individuals to use their own capital to open A&W drive-ins
and vending booths, thus establishing America's first
franchised restaurant chain. By 1933, more than 170 A&W
outlets were franchised. To ensure uniform quality for his
beverage, Allen sold A&W Root Beer concentrate exclusively
to each franchise operator.
Despite government rationing of sugar during World War II,
A&W Root Beer stands remained successful. Following the war,
the number of A&W outlets tripled as GI loans paved the way
for private enterprise. Driven by the popularity of the
automobile and the new mobile society, more than 450 A&W
Root Beer stands were operating by 1950. It was in 1950 that
founder Roy Allen retired and sold the business to an
aggressive Nebraskan named Gene Hurtz, who formed the A&W
Root Beer Company.