The Most Happening A&W Branch In Malaysia Is Going To Be Demolished

The iconic A&W drive-in restaurant will be demolished in December. Here's why.

Malaysia's first fast food drive-in restaurant will be closing down by the end of the year

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Oh no! As heard on BFM 89.9 this morning, Malaysia’s first drive-in restaurant A&W will be closed down by the end of this year.

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The iconic restaurant will be making way for two office towers which is set to be completed in 2018

KUB Malaysia Bhd, which holds the A&W franchise in Malaysia and Thailand, plans to transform its landmark restaurant in Section 52, Petaling Jaya (PJ) into two office towers with a gross development value (GDV) of RM263 million next year, said its group managing director Datuk Wan Mohd Nor Wan Ahmad.

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The restaurant will be relocated to a newer building when completed

"I can tell you that many people are eyeing that plot of land. We are building office towers there to diversify our earnings base and unlock its potential value," he said, adding that the current A&W restaurant will be closed by year-end and will be relocated to one of the new buildings when completed.

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34 other A&W outlets will also be closing down or relocated to reposition the business and operations

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However, this year, the company reported that they will close 34 A&W outlets (24 in Malaysia and 10 in Thailand) to reposition its business and operations to achieve sustainable growth. Any outlet that is not making money will be shut down or relocated.

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KUB has been making losses but will not be selling the business as they managed to turn the business around, recording the net profit just last year

KUB incurred a net loss of RM58.8 million for the year ended Dec 31, 2011 on a revenue of RM708.5 million and the losses were mainly attributed to the group’s food operations, spearheaded by its subsidiaries A&W (Malaysia) Sdn Bhd and A&W Restaurants (Thailand) Ltd Co. A&W in Malaysia and Thailand faced major setbacks in the 2011 fiscal year where it recorded losses totalling RM44.5 million, of which 50% was caused by impairment losses.

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However, he stressed that KUB Malaysia is maintaining that its "not for sale" stance on its 40% stake in A&W (Malaysia) Sdn Bhd after the loss-making fast-food chain managed to turn itself around and made a net profit of RM1.89 million last year.

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The A&W drive-in was the first of its kind in Petaling Jaya, and became a popular hangout spot for many in the 1960s to the 1980s

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The most famous A&W outlet is the first drive-in restaurant in Petaling Jaya, which opened in 1965 and quickly became a favourite gathering place for students, especially from the nearby Assunta and La Salle Secondary Schools.

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It was the filming location for Malaysia movies during the 1970s and early 1980s.

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Customers from the 70s (and 80s, even) will recall Tuesdays as “Coney Dog Day”.

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