yum brands selling off long john silver's and a&w

There are a lot of local jobs at stake here for some really good people. Let's hope for the best outcome with this change.

Not really a surprise, both sub-chains are floundering and Yum seems to either not be interested in salvaging them or simply do not know how to make them successful in the new normal.

Hopefully the chains will stay alive and find new life under new leadership.

An especially interesting situation if this happens is the co-branded stores. I wonder if maybe YUM has their sights on another acquisition and they need some additional cash and make it happen?

They have some very nice location sites around the city. I hope the restaurants don't just sit empty.

An especially interesting situation if this happens is the co-branded stores. I wonder if maybe YUM has their sights on another acquisition and they need some additional cash and make it happen?

I doubt the amount these two will bring is significant to YUM. My guess is they can't see a clear way to grow these two brands in China and they are just a slow-growth US distraction to them. Seems like a perfect private equity situation.

Perhaps batter-dipped fish and root beer don't appeal to consumers in China, since that appears to be where much of YUM's strategic growth is focused. While I've never been much of an LJS patron, I hope that A&W finds a "white knight" investor who will reinvigorate the brand...it has a lot of equity and (if I'm not mistaken) is the oldest QSR chain in the US (c.1919). It's too bad that YUM lacks the vision to try and rebuild A&W, which (IMO) would provide a natural extension to its product line (Pizza, Chicken, Mexican, Burgers).

Perhaps batter-dipped fish and root beer don't appeal to consumers in China, since that appears to be where much of YUM's strategic growth is focused. While I've never been much of an LJS patron, I hope that A&W finds a "white knight" investor who will reinvigorate the brand...it has a lot of equity and (if I'm not mistaken) is the oldest QSR chain in the US (c.1919). It's too bad that YUM lacks the vision to try and rebuild A&W, which (IMO) would provide a natural extension to its product line (Pizza, Chicken, Mexican, Burgers).

+1

I think the trouble with the A&W brand is that public awareness associates A&W with root beer only and not with quality food items (the same kind of obstacle Dairy Queen continues to battle). Couple that with the gridlock in the fast food burger genre and I can see why A&W might struggle.

LJS on the other hand, should be marketable, but so much of their focus has been diverted from what they do well: fish n' chips. So many fish tacos and lobster bites, they have been chasing so many trends that they have forgotten what got them here. (see also KFC's current troubles). I think you could save LJS, if you got back to basics and simply did excellent fish n' chips at fast food prices. Were I to be tasked with revamping LJS, the first thing I would do is drop the menu back to fish n' chips, hush puppies, fried shrimp, and a few other assorted items, and just focus on doing those basics better than anyone else at prices better than the other competitors.

I think the trouble with the A&W brand is that public awareness associates A&W with root beer only and not with quality food items (the same kind of obstacle Dairy Queen continues to battle). Couple that with the gridlock in the fast food burger genre and I can see why A&W might struggle.

LJS on the other hand, should be marketable, but so much of their focus has been diverted from what they do well: fish n' chips. So many fish tacos and lobster bites, they have been chasing so many trends that they have forgotten what got them here. (see also KFC's current troubles). I think you could save LJS, if you got back to basics and simply did excellent fish n' chips at fast food prices. Were I to be tasked with revamping LJS, the first thing I would do is drop the menu back to fish n' chips, hush puppies, fried shrimp, and a few other assorted items, and just focus on doing those basics better than anyone else at prices better than the other competitors.

I worked in marketing at KFC Corp. during the 1980's, when they were in the midst of their back-to-basics campaign ("We Do Chicken Right!") which followed a period of broad menu expansion during most of the 1970's which cost KFC a great deal of brand identity and nearly wrecked the company. Both the A&W and LJS brands are salvagable, but YUM's present corporate culture of building overseas at the expense of its domestic markets (the topic of another thread) will not allow it to provide the attention that A&W/LJS need in order to survive...sell both to someone who truly values these brands and will give them the development they deserve.

I personally would love to see some deep pocketed investment group buy A & W and try to return it to the glory days of its curb service roots. I used to love going to 10th St. in Jeffersonville when I was growing up. If they could get away from the QSR model and go for a more fast casual approach with an emphasis on curbside service and frosty mugs of the signature item; I believe they would have a winner. There are an awful lot of empty Sonic locations around with the potential to expand, while refocusing on rebuilding the brand and improving the quality of their offerings.

I could care less about what happens to LJS. Captain D's serves an affordable, superior product if I ever get a hankering for batter fried fish.

I personally financed the LJS Franchise throughout my 5 years in college. Heavily. They are a winner in food courts and student eateries on College campuses.

Eons ago, the last time I went to LJS made me realize why it had been eons since I went the time before. For this league of fast food fish, Captain D's puts LJS to shame and they won't be missed. I think Yum made a good decision. Now, only if Yum ditches Taco Bell and replaces them with something as good as Taco Palenque http://www.tacopalenque.com/index.php. On second though, scratch that. They would just be ruined too.

As for A&W, I have no experience with them.

Now, only if Yum ditches Taco Bell and replaces them with something as good as Taco Palenque http://www.tacopalenque.com/index.php. On second though, scratch that. They would just be ruined too.

As for A&W, I have no experience with them.

Taco Palenque.... wow, that was a surprise to see mentioned here. I really love their layout, the little salad bar is awesome, fresh tortillas non-stop too...... Many memories there, late night eats in McAllen. and when money is low.... you get yourself one fajita taco and a couple of tortillas and you can easily make three.... and this is me talking...

Eons ago, the last time I went to LJS made me realize why it had been eons since I went the time before. For this league of fast food fish, Captain D's puts LJS to shame and they won't be missed. I think Yum made a good decision. Now, only if Yum ditches Taco Bell and replaces them with something as good as Taco Palenque http://www.tacopalenque.com/index.php. On second though, scratch that. They would just be ruined too.

As for A&W, I have no experience with them.

+1

I haven't had a good piece of fish from LJS in 10 years.