Roy W. Allen’s 1919 roadside stand sold root beer. He opened the stand in Lodi, California, during a homecoming celebration for soldiers returning from World War I.
Allen had obtained a root-beer formula and began selling the drink for five cents a glass. The stand proved successful, and he opened additional stands, including one in Stockton and several in Sacramento. The beverage—not iced tea, lemonade, or orange soda—was the foundation of the later A&W business.
In 1922, Allen partnered with his employee Frank Wright. Their surnames produced the A&W name, and the following year they opened a drive-in restaurant in Sacramento. Allen later developed the business into a franchise system in which operators bought A&W concentrate and used the brand name.
Root beer also benefited from the Prohibition era because it was a nonalcoholic beverage despite containing the word “beer.” A&W became especially known for serving it in chilled, frosty mugs and later pairing it with vanilla ice cream in root beer floats.