Buffalo Wild Wings Signs 18 New Franchise Development Deals

Message from air traffic control: Move over ducks and geese, the chickens are taking flight.
To be specific, the Buffalo Wilds Wings chickens, that is, the ones at the core of the 252-unit chain’s ever-popular menu. Led by a hungry and growing group of Multi-unit franchise investors, the concept has rapidly become poised for major growth over the next decade.

Since July 2003, Buffalo Wild Wings has signed multi-unit agreements with 18 franchisees – some new, some old – representing development of 165 new locations over the next 10 years. The sports-themed casual dining chain has already spread its wings across much of the eastern half of the United States and, thanks in part to these latest commitments, is filling in the gaps there as well as pushing further into the West. With that momentum, the company is progressing swiftly toward its goal of having 400 open locations by the end of next year.

New agreements were signed with the following franchisees:
• Alamo Wing, Ltd. will develop 42 stores in Texas and New Mexico over the next 10 years. The company already has four open locations (one of which was included in the new agreement) as well as 25 Little Caesar sites.
• BW-Illinois/Michigan/Maryland, LLC will develop 23 stores in Michigan, Illinois and Maryland over the next eight years. The company’s partners include a commercial real estate developer working with national retailers such as Walgreen’s, and an existing Buffalo Wild Wings franchisee who already has 10 locations.
• JK&T, Inc. will develop 22 stores in Michigan and Louisiana over the next eight years, expanding on its six existing Buffalo Wild Wings locations in Michigan.
• MCA Enterprises, Inc., which currently operates four Buffalo Wild Wings restaurants in Michigan, will now develop 10 stores in Tampa, Fla., over the next seven years.
• Sunshine Restaurant Corp. will develop 10 stores in Orlando, Fla., over the next seven years. The company’s partners have backgrounds in finance, restaurant construction and management, technology, banking and real estate.
• Grand Canyon Equity Partners, LLC has agreed to develop 10 stores in Phoenix in the next eight years. The partners come from various business and legal backgrounds; one was previously in operations with Hooters.
• Suncoast Restaurants, LLC, whose principals already operate Hilton Garden Inn, Hampton Inn and Cold Stone Creamery locations, signed an agreement to develop seven stores in Pinellas County, Fla., over the next five years.
• BW Investments, LLC will build six stores in Las Vegas over the next four years, adding to the four the company already has in the market. A former senior marketing executive with the Wendy’s corporation owns the company.
• B&K Wings, LLC has signed an agreement to develop six stores in Arkansas over the next four years. The company also operates a Copeland’s of New Orleans casual-dining restaurant in Rogers, Ark.
• High Five, LLC plans to develop five stores in BelAir, Md., and throughout Delaware over the next four years. Two partners of the company come out of Buffalo Wild Wings corporate operations; a third operates several Automotive franchises in Ohio and is landlord to a Friday’s restaurant.
• Let’s Eat Out, Inc. will develop four stores in Springfield, Mo., and Huntsville, Ala., over the next three years. The company is operated by a veteran food franchisee who at one time had 42 Pizza Hut, Dunkin’ Donuts, Baskin-Robbins and Arby’s units.
• Double O, Inc. plans to build four stores in Abilene, San Angelo and Wichita Falls, Texas and Lawton, Okla., over the next three years. The company’s principal is currently a Taco Bell franchisee.
• A Sure Wing, LLC has signed an agreement to develop four stores in St. Louis over the next three years, bringing its total to seven Buffalo Wild Wings locations in the area.
• Hoosier Wing It, LLC, operator of a Buffalo Wild Wings restaurant in Michigan City, Ind., will develop three stores in Ft. Wayne, Ind., over the next three years.
• JARS 1, Inc., whose principals are also Wendy’s franchisees, signed an agreement to build three restaurants in Portsmouth, Ohio, and eastern Kentucky, over the next three years.
• RC Restaurant Group, LLC signed an agreement to develop two stores in Beaumont, Texas and Lake Charles, La., over the next two years, adding Buffalo Wild Wings to a restaurant portfolio that also includes Quizno’s.
• W&K Bismarck/Fargo, LLC, currently operating two Buffalo Wild Wings restaurants, has signed an agreement to develop two more stores in West Fargo and Bismarck, N.D. over the next two years.
• Lancaster Wings West LLC will grow from five to seven Buffalo Wild Wings restaurants by adding two stores in Flagstaff, Ariz. The company’s first five locations are in Ohio.

Strong Wind Beneath Its Wings
Buffalo Wild Wings is enjoying a period of positive change right now and executives at the chain are taking action to help it soar even higher. Last fall, they issued an initial public offering of common stock, raising capital to pave the way for growth, research and development and building an even better infrastructure. The IPO was well received, but according to Vice President of Franchising Bill McClintock, no one in his department was too surprised.

“ When our company rolled out an IPO last November, investors eagerly latched on to our concept. Earlier in the year, however, our Franchise department was already seeing signs of investor hunger: A steady stream of applicants interested in multi-unit opportunities began approaching us, and we’ve found it very rewarding that many of them are existing franchisees coming back for more. We’re also encouraged by the fact that many of the deals they’re signing are not just for two or three locations but for much larger numbers, as high as 42,” he says.

What has convinced veteran franchisees and newcomers alike to seek bigger pieces of the Buffalo Wild Wings pie is a common feeling that the chain has put together unparalleled offerings both for its operators and the consumers their restaurants serve. Many also believe that, while still relatively small, the chain has great growth potential.

Let’s Eat Out owner Jim Bruno, for instance, came back to sign a four-unit deal after his first unit was off to a good start. Having just signed a lease on the first of these new locations, he says he’s moving full-steam ahead toward securing his next property. He also has approached the franchisor to discuss a possible new deal for another 10 units.

“ I’m absolutely pro-Buffalo Wild Wings,” he says. “I have never seen a company as well structured as this one is. They really have their act together. You know they’re going to be very up-front with you and tell you the facts; the whole company is structured like that. I came away from my first meeting with really good vibes and I continue to have very good feelings.”

Others, who, like Bruno, already have had considerable exposure to other Restaurant Franchise programs, share his opinion.
“ After our first opening, we quickly realized the Buffalo Wild Wings concept had tremendous cross-demographic appeal, and we didn’t want to get left behind,” says Alamo Wing’s Larry Harris, who signed the biggest deal for 42 Buffalo Wild Wings units.

Michael Bailey, who has extensive background developing retail properties for a variety of chains in addition to Walgreen’s, says he watched the evolution of Buffalo Wild Wings from its infancy and became increasingly attracted because of its successful maturation and its broadening appeal. When he saw his chance, he opted in confidently, forming BW-Illinois/Michigan/Maryland, LLC with an existing Buffalo Wild Wings operator.

“ I thought it was a very exciting concept that would appeal to a wide variety of patrons. I watched the progression of it and felt it was something I’d like to be part of,” he explains.

A Perfect Recipe for Repeat Business
While these eager investors are steadfast in their convictions that this wings concept has, as Harris puts it, “major legs,” none of them can single out the one factor responsible for that potential. Rather, they agree, it is the combination of elements – including food, atmosphere, sports, brand awareness, corporate support and systemwide enthusiasm – that makes Buffalo Wild Wings so alluring.

In terms of consumer appeal, the Buffalo Wild Wings menu features a popular assortment of award-winning wings and signature sauces as well as “finger foods,” other chicken dishes, hot and cold sandwiches, burgers, salads and Mexican food. This appetizing lineup is presented in a fun-filled, welcoming atmosphere highlighted by large-screen TVs and dozens of smaller monitors broadcasting sporting events, with a series of National Trivia Network (NTN) consoles mixed in to entertain customers between innings or whenever they please. Tables and chairs were selected to let customers easily reorient them to group together or isolate themselves as desired or to get a better view of the game they’re watching.

“ Every person I see in the dining room or on the street when I’m wearing a Buffalo Wild Wings shirt says, ‘That’s my favorite restaurant.’ The menu is very simple but was developed with a lot of thought. People crave our sauces so much we sell bottles of it. That’s a big business. The atmosphere itself is well designed. You pull tables together, sit down and have food and beer and watch sports or play trivia with friends. It’s an adult playground,” says BW Investments, LLC’s’ Bill Welter.

That appeal not only draws a big crowd, Welter adds, but more importantly translates into repeat business.

“ When I’d talk to customers before I became a franchisee I was amazed that this was their favorite restaurant and they’d come back so much. The average customer visited three to four times a week. Even the average fast-food user doesn’t reach that level. Buffalo Wild Wings has a core group of loyal customers. That’s very special.”

Instilling Confidence in Franchisees
On the franchise side, all new Buffalo Wild Wings franchisees receive the support and training required to open their restaurants quickly and efficiently, including:
• Site-selection assistance and guidance, including field visits;
• Detailed restaurant designs and layouts;
• Professional layout, blueprint, design and construction document review and analysis;
• Complete equipment lists and specifications;
• Pre-approved suppliers;
• Guidance in securing a liquor license;
• Grand Opening promotions assistance and on-site opening assistance;
• Operational and management tools;
• Comprehensive pre-opening assistance and restaurant opening training package; and
• Post-opening guidance and support from Franchise Regional Manager staff.

Buffalo Wild Wings’ startup and ongoing training programs teach franchisees and their staff many aspects of running a location, including:
• Preparation of all menu items;
• Quality and food-portion control;
• Effective foodservice operations;
• Beverage and inventory management;
• Hiring and personnel management;
• Marketing, promotions and public relations;
• Management tools, systems and routines;
• A “Wing Certified Trainer” program;
• Cleanliness, organization and sanitation standards; and
• Management of opening and closing functions.

In addition, Buffalo Wild Wings offers ongoing support services such as:
• A confidential manual documenting Buffalo Wild Wings operational procedures;
• Marketing manual guidance;
• Operational, marketing and financial-control consultation as needed;
• National purchasing programs;
• Scheduled visits from a Franchise Regional Consultant; and
• Available in-service training and/or retraining of restaurant staff.

These comprehensive resources are carefully cultivated, franchisees say, but just as the restaurant environment is a critical complement to the Buffalo Wild Wings menu, franchisees also say that the Buffalo Wild Wings corporate staff is inextricably linked with the value of the franchise program.

“ The professionalism I observed in the corporate headquarters matched that of chains I’ve dealt with that have 3,000 to 4,000 locations,” says Steve Howard, a multi-unit Sonic Drive-In operator who, along with his brother Ken, signed a 10-unit franchise agreement with the chain for Texas and Oklahoma in 2002. “They have it on the ball: They’re aggressive but personable. They don’t put things on the back burner. They’re out to take this chain and make it grow and they have the ability to make people want to be involved in that. We haven’t seen that with everybody we’ve dealt with.”

View From Within As Impressive As The One From Without
The Buffalo Wild Wings corporate staff is so enthusiastic about the chain’s potential, in fact, that some have begun to bank on it in a big way. High Five’s Bobby Pancake spent six and a half years on the corporate side, for instance, and when he was ready to strike out on his own, he knew there was no need to look anywhere else.

“ I believe this brand is going to be around for a long, long time and it’s positioned right,” he says. “I know the concept. I believe in it and in its growth potential and I want to be a big part of that.”

But those who have approached the chain from the outside have realized equally well that a strong concept with the desire and ability to grow doesn’t come along too often.

“ We wanted to make sure it was the right fit for us,” says Andrew Gross, who spent more than a year and a half with his Sunshine Restaurant Corp. partners working on their deal before signing it, and now rests assured that they will be the ones to satisfy the Orlando market’s demand for Buffalo Wild Wings’ unequalled flair for sports-themed casual dining.

“ We want to control the area where we’re developing,” he says. “We don’t have all of Orlando, but we have most of it.”