Thursday, January 20, 2011

Psst, hey bub, wanna buy a restaurant?

Yum! Brands announced yesterday that they're putting two of their less successful restaurant chains on the auction block, A&W and Long John Silvers.

I have just one question. Who in their right mind would want to buy them?

What do either of these brands offer of value?

A&W is not a cheap and convenient as the larger national chains like McDonald's and Burger King. And it's not as good and interesting as regional players like Culver's and In & Out Burger. Sure, there's some equity in their root beer and drive in heritage, but it's been so poorly managed over the years, that it's practically meaningless.

And Long John Silvers? Bad fried fish in a pirate themed environment. Yeah, that's worth investing in.

The cost to resurrect the image of these brands (if that's even possible) would be astronomical.

My guess is that they won't be around for long. Both will be purchased by another restaurant chain for the value of the real estate and converted into a place where people actually want to eat.

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