In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Buffalo Wild Wings franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Buffalo Wild Wings franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Buffalo Wild Wings franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Buffalo Wild Wings outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Buffalo Wild Wings’ financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, median, high, and low gross sales for the 544 Buffalo Wild Wings Franchised Restaurants open at least 12 months as of December 31, 2017 (and which opened after January 1, 2001)
Section I – Background Information
12 Things You Need to Know About the Buffalo Wild Wings Franchise
Unveils In-Restaurant and Final Four Programs to Enhance Fans’ NCAA March Madness Experience
1. During the NCAA (National Collegiate Athletic Association) Basketball Championship, Buffalo Wild Wings positioned itself as the “Official Hangout for NCAA March Madness.” In early March, the brand unveiled a series of in-restaurant and Final Four activities designed to reward fans, enhance their tournament watching experience, and bring them closer to the NCAA Championship.
2. Bob Ruhland, vice president of marketing for Buffalo Wild Wings, said, “Buffalo Wild Wings is the ultimate destination for college basketball fans looking to watch March Madness with their friends while enjoying hot wings and delicious beverages. This year, we wanted to reward our loyal Fans with opportunities that will elevate their Tournament watching experience in our restaurants and at the Final Four.”
3. Through the promotion, customers had opportunities to win Blazin’ Rewards bonus points. They were also able to purchase team-branded pint glasses and limited edition e-gift cards. Buffalo Wild Wings also sponsored the B-Dubs Sports Lounge located within the Final Four Fan Fest in San Antonio, Texas. At the lounge, fans were able to watch Championship games, participate in Blazin’ Challenge wing eating contests, and explore a new digital experience called “Tender by B-Dubs” that helps customers identify their perfect sauce match.
Appoints New Director of Protein Supply Chain
4. In early December 2017, Buffalo Wild Wings announced that Tim Scheiderer had been named director of protein supply chain. Scheiderer comes to the company with more than 26 years of direct poultry experience, having served in a variety of roles including operations, business development, and quality assurance. Most recently, Scheiderer served as director of business development for national accounts at Tyson Foods, where he was responsible for sales planning and growth.
5. In his new role at Buffalo Wild Wings, Scheiderer will be responsible for strategic oversight and day-to-day management of the restaurant’s protein procurement area. Barry Barnett, senior vice president, global supply chain at Buffalo Wild Wings, said, “We are excited to welcome Tim to Buffalo Wild Wings and look forward to the valuable contributions he will offer our organization. His extensive background in various disciplines within the poultry industry makes him a significant and welcomed addition to the brand, particularly in these challenging times facing our poultry supply.”
Makes Ordering Takeout Easier With New Website
6. Around the beginning of October 2017, Buffalo Wild Wings launched a new website that makes it easier for customers to see, find, and order their favorite Buffalo Wild Wings menu items – from their mobile device or desktop. About a month after rolling out the new website, Buffalo Wild Wings said that there was a 20 percent increase in website transactions. Some of the website’s updated features allow customers to view a visually dynamic Buffalo Wild Wings menu, search for localized promotions and restaurant information, and explore exclusive content for sports fans.
7. According to Brooks Goldale, Buffalo Wild Wings’ director of digital experience, “With our new website, we wanted to create a more dynamic, responsive, and personalized user experience that puts our Fans one step closer to enjoying their favorite food. Our site now brings the Buffalo Wild Wings restaurant experience straight to the web and makes ordering B-Dubs online stress-free.”
8. The website’s new key features and sections include:
- Mobile-First Design: With a majority of visits to its site coming from mobile devices, Buffalo Wild Wings created a platform with the mobile user in mind. The site offers a simple, straightforward experience that allows users to find the information they need quickly, including food, promotions, location information, and exclusive content. The new site has seen a 16 percent increase in mobile user satisfaction scores.
- Visual & Customizable Menu: Visuals for every item allow users to quickly view, select, and breeze through the ordering process. Fans can also customize each item to their personal preferences.
- Favoriting Items: Customers can save their go-to menu items and previous purchases to help expedite the ordering process on future visits.
- Promos: This section provides a snapshot of the various ongoing and limited-time promotions offered at the local Buffalo Wild Wings. This section is customized by a user’s location so they can find the best deals at the nearest restaurants.
- Fan Zone: The “Fan Zone” offers timely and relevant content for fans to explore while providing them with Buffalo Wild Wings’ unique take on sports. The page features tips and advice for sports lovers, exclusive video content, and information on national and local events hosted at Buffalo Wild Wings restaurants around the country.
9. Buffalo Wild Wings was founded in 1982 by Jim Disbrow and Scott Lowery in Columbus, Ohio. The two friends had just moved from Buffalo, New York to Ohio and were unable to find a restaurant serving their favorite Buffalo, New York-style chicken wings. They decided that the only way to satisfy their cravings was to open their own chicken wing joint that specialized in authentic Buffalo-style wings like the ones from home.
10. Disbrow and Lowery brought in Mark Lutz to help them run the business. Over the next decade, the business partners opened eight more Buffalo Wild Wing locations. In 1992, they partnered with Francorp, a Chicago-based franchise development firm, to franchise the Buffalo Wild Wings concept. Two years later, Sally Smith joined the company as chief financial officer – she would eventually become the president and CEO of Buffalo Wild Wings.
11. By the end of the 1990s, there were 100 Buffalo Wild Wing restaurants around the country; less than a decade later, the 500th location opened. Buffalo Wild Wings has continued to show strong growth and there are currently over 1,250 restaurants around the world.
Entrepreneur’s Franchise 500
12. Buffalo Wild Wings did not rank on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Buffalo Wild Wings franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Buffalo Wild Wings’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 579
- Outlets at the End of the Year: 559
- Net Change: -20
- Outlets at the Start of the Year: 559
- Outlets at the End of the Year: 580
- Net Change: +21
- Outlets at the Start of the Year: 580
- Outlets at the End of the Year: 585
- Net Change: +5
- Outlets at the Start of the Year: 473
- Outlets at the End of the Year: 576
- Net Change: +103
- Outlets at the Start of the Year: 576
- Outlets at the End of the Year: 607
- Net Change: +31
- Outlets at the Start of the Year: 607
- Outlets at the End of the Year: 615
- Net Change: +8
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- The Item 19 Statement is an unaudited statement of average gross sales, as qualified below, for all Franchised Restaurants in the System located in the U.S.
- Buffalo Wild Wings used information from Franchised Restaurants opened after January 1, 2001, because most of the Franchised Restaurants opened after January 1, 2001 meet the company’s current business model and qualifications for franchisees in areas such as site selection, required restaurant operations and development experience, and financial strength.
- A lesser percentage of Franchised Restaurants opened prior to January 1, 2001 meet the company’s current business model and qualifications for franchisees.
- It is possible that the revenues received by the Franchised Restaurants covered by this disclosure may decrease over time.
- The Franchised Restaurant sales information is based on sales reports submitted to Buffalo Wild Wings by franchisees. Buffalo Wild Wings has not audited the reports for purposes of this Item 19 information.
- All Franchised Restaurants considered offer substantially the same products and services as will be offered from Franchised Restaurants.
- Some restaurants have sold or earned this amount. Your individual results may differ. There is no assurance that you’ll sell or earn as much.
- Gross Sales includes the total revenues and receipts from the sale of all products, services, and merchandise sold in or in relation to your Restaurant, whether under any of the Trademarks or otherwise, including, without limitation, any cover charges or fees, any vending or similar activities in your Restaurant or on its premises, catering, delivery and other off-site activities and events, and all use or license fees. Gross Sales does not include sales tax, promotions, voids, or discounts.