You’ve probably seen the orange-and-brown logo a thousand times. Maybe you’ve even had your root beer served in a frosted glass mug by a carhop on roller skates. But when you ask where did A&W start, you aren't just looking for a pin on a map. You are looking at the literal birth of the American fast-food industry. Most people think McDonald’s or White Castle paved the way, but they’re wrong.
It started with a parade.
On June 20, 1919, in Lodi, California, the town was celebrating the homecoming of World War I veterans. It was hot. Dusty. Roy W. Allen saw an opportunity. He didn't have a restaurant. He didn't even have a building. He had a stand on the sidewalk and a recipe he’d bought from a pharmacist in Arizona. That’s it. One man, one stand, and a cold drink.
The Lodi Origins and the Pharmacist's Secret
Roy Allen wasn't a chef. He was an entrepreneur with a knack for timing. He knew that people in 1919 were looking for something refreshing, and "near beer" or herbal sodas were exploding in popularity thanks to the early whispers of Prohibition. The Eighteenth Amendment was ratified in January of that year, and by the time Allen set up his stand in Lodi, the country was drying up. People needed a substitute for the saloon.
The recipe he used wasn't some corporate concoction developed in a lab. It was a blend of herbs, bark, berries, and spices. It was thick. It was creamy. Most importantly, it was served cold. That first stand at 13 Pine Street in Lodi was a massive success. He sold the drinks for five cents.
Think about that. Five cents for a drink that would eventually launch a global empire.
By 1920, Allen teamed up with Frank Wright. Wright was a former employee who had the drive to help Allen expand. This is where the name comes from: Allen and Wright. They didn't overthink it. They just put their initials together and kept moving. They opened their first permanent store in Sacramento, and by 1923, the A&W brand was officially born.
Why the Location Mattered
Lodi wasn't just a random choice. Central California was a hub of transit and agriculture. But more importantly, the post-war era brought a boom in car ownership. People were mobile. They were driving. The traditional sit-down meal was starting to feel a bit stiff for the new, fast-paced American life.
Allen and Wright realized they didn't need fancy dining rooms. They needed accessibility.
While the Sacramento location solidified the brand, it was the move to expand that changed business history forever. Roy Allen was a visionary in a way most people don't realize. He didn't want to manage fifty different stores himself. He was tired. He wanted to sell the idea of the store.
The First Franchise in History?
Here is the part where business nerds get really excited. When you look into where did A&W start, you eventually run into the concept of the franchise. Roy Allen is widely credited with creating the first franchised restaurant system in 1925.
👉 See also: Is the Sharpe Ratio of the S\&P 500 Actually High or Just Lucky?
He didn't call it "franchising" back then. He sold "licenses."
Basically, he would sell the right to use the A&W name and his proprietary root beer concentrate to other entrepreneurs. This allowed the brand to explode across California and the West Coast without Allen having to front all the capital for every single building. It was a stroke of genius. It’s the reason why, by the 1930s, there were over 170 A&W outlets operating across the country.
The growth was chaotic. Because it was a "licensing" agreement and not a strict modern franchise contract, every A&W looked a little different. Some were just stands. Others were small walk-ups. This lack of consistency is actually what gives the brand its nostalgic, "mom-and-pop" feel today, even though it’s a massive corporation.
The Drive-In Phenomenon
By the time the 1950s rolled around, A&W was the king of the road. While the Lodi stand was the answer to where it started, the how was the drive-in.
They pioneered the carhop.
Imagine it’s 1955. You pull your Chevy Bel Air into a stall. A teenager on skates rolls up to your window, hooks a heavy tray onto the glass, and hands you a frosted glass mug that’s actually heavy. The condensation is dripping down the side. The root beer is so cold it has tiny ice crystals in it. This wasn't just eating; it was a performance.
This model worked so well that A&W expanded into Canada in 1956, opening a site in Winnipeg. Interestingly, A&W Canada and A&W US eventually became two completely separate companies. If you go to a Canadian A&W today, you’ll see a totally different menu (and the famous "Burger Family"—the Papa Burger, Mama Burger, etc.) than you will in the States.
The Mug and the Myth
One of the biggest misconceptions about A&W's start is that it was always a burger joint. It wasn't. For decades, it was almost exclusively about the root beer. The food was an afterthought—something to keep people around longer so they'd buy a second or third mug of the good stuff.
The frosted mug became the brand’s "North Star."
Roy Allen insisted on it. He believed that the experience of the drink was tied to the temperature and the vessel. If you served it in a paper cup, it was just soda. If you served it in a frozen glass, it was an event. To this day, purists will tell you that the only real way to experience the legacy of that 1919 Lodi stand is to sit down with a glass that’s been in the freezer for four hours.
What Happened to the Original Site?
If you go to Lodi today, you won't find the original 1919 stand. It was a temporary structure, after all. However, the city is very proud of its history. There is a commemorative plaque at the site of the first stand on Pine Street.
The brand has gone through countless owners. It was sold to United Fruit Co. in the 60s, then to various private equity groups, and even spent a stint under the same umbrella as KFC and Taco Bell (Yum! Brands).
In 2011, a group of A&W franchisees did something almost unheard of: they bought the company themselves. They were tired of corporate suits trying to make A&W just another fast-food chain. They wanted to go back to the roots. They wanted the mugs, the carhops, and the original recipe.
Honestly, that’s why the brand is still alive. It’s sustained by the nostalgia of where it began.
Actionable Takeaways for History and Business Lovers
If you're looking to visit a piece of this history or apply the A&W "origin" logic to your own life, keep these points in mind:
- Visit the Lodi Plaque: If you're ever in Northern California, hit 13 Pine Street. It’s a pilgrimage for fast-food historians.
- Understand the "Near Beer" Pivot: A&W succeeded because Roy Allen looked at the law (Prohibition) and found a way to give people what they were missing without breaking the rules.
- Experience the Separation: If you're a real fan, try A&W in both the US and Canada. They are distinct entities with different vibes, and comparing the two is a fascinating lesson in brand evolution.
- The Power of a "Signature": A&W didn't win because they had the best meat; they won because they had the coldest mug. Find your "frosted mug"—the one thing you do better than anyone else that defines the customer experience.
The story of where A&W started is a reminder that the biggest empires often begin with a single person standing on a sidewalk, selling a five-cent drink to people who just want to cool down. It wasn't a board meeting that built A&W. It was a parade, a pharmacist’s recipe, and a very cold glass.