By 1933, the creamy beverage was such a success that there were over 170 franchised outlets operating in the mid-west and west. To insure uniform quality for the namesake beverage, Allen sold A&W Root Beer® concentrate exclusively to each franchise operator.

During World War II no new restaurants were opened and despite governmental sugar rationing and employee shortages most A&W® units remained successful. After the war, the number of A&W® restaurants tripled as GI loans paved the way for private enterprise to flourish.

In 1950, with over 450 A&W® restaurants operating nationwide, founder Roy Allen retired and sold the business to an aggressive Nebraskan named Gene Hurtz, who formed the A&W Root Beer Company. The post war era - the rapidly recovering economy and popularity of the automobile, provided the right environment for Hurtz's company to prosper. Drive-ins were becoming increasingly popular and A&W® had the privilege of being one of the few nationally established drive-in restaurant chains. By 1960 the number of A&W® restaurants had swelled to over 2000.

The first A&W® restaurant outside of the U.S. opened in 1956 in Winnipeg, Manitoba, Canada (the Canadian division eventually became a wholly owned subsidiary of A&W® and in 1972 was sold to Lever Brothers, Ltd., an international conglomerate.)

In 1963, the A&W Root Beer Company was sold to the J. Hungerford Smith Company, the firm which had manufactured A&W Root Beer® concentrate since 1921.

In that same year, the first overseas A&W® restaurant opened it's doors. Located in Guam, the international division quickly expanded to the Philippines.