Buffalo Wild Wings 2006 Annual Report Download - page 4

• Focus on operational excellence; and
• Increase same-store sales and average unit volumes.
G
rowth Strategy
Our growth strategy involves opening company-owned and franchised restaurants in both new and existing markets.
We believe that we have established the necessary infrastructure and control systems to support our disciplined growth
strategy and that our concept can support over 1,000 restaurants in the United States. We have developed procedures for
identifying new market opportunities, determining our company and franchising strategy in those markets and identifying
sites for company-owned and franchised restaurants. Our growth strategy for the near-term projects a mix of approximately
ne-third company-owned restaurants and approximately two-thirds franchised restaurants. o
We intend to build additional company-owned restaurants in both new and existing markets. In most of our existing
markets, we plan to continue to develop new company-owned restaurants until a market is penetrated to a point that will
enable us to gain marketing and cost efficiencies. We intend to enter new markets by opening several restaurants within a
one-year period to quickly build our brand awareness. We intend to grow our franchise system through the development of
ew restaurants by existing and new franchisees, focusing on multiple-unit area development agreements. n
T
he Buffalo Wild Wings Menu
Our restaurants feature a variety of menu items including our Buffalo, New York-style chicken wings spun in one of
our signature sauces (from sweet to screamin’ hot: Teriyaki™, Sweet BBQ™, Mild™, Medium™, Spicy Garlic™, Caribbean
Jerk™, Hot BBQ™, Hot™, Wild® and Blazin’ ® , and our newest sauces: Parmesan Garlic™, Honey BBQ™, Asian Zing™, and
Mango Habanero™). Our fresh chicken wings can be ordered in sizes ranging from six to 100 wings, with larger orders
available for parties. Our sauces complement and distinguish our chicken wings to create a bold flavor profile for our guests.
In addition to chicken wings, our menu features a wide variety of food items including boneless wings, chicken tenders,
popcorn shrimp, specialty hamburgers and sandwiches, wraps, Buffalito soft tacos, finger foods and salads. We also provide
a 12 & Under Menu for kids.
Our restaurants feature a full bar which offers an extensive selection of approximately 20 domestic and imported beers
on tap as well as bottled beers, wine and liquor. Additionally, in order to continually improve our menu, we have a research
and development department that tests and implements new menu items. Our goal is to balance the established menu
offerings that appeal to our loyal guests with new menu items that increase guest frequency and attract new guests.
Restaurant Atmosphere and Layout
Our restaurants are designed to provide an inviting neighborhood atmosphere and allow our guests the flexibility to
customize their dining experience. The inviting and energetic environment of our restaurants is created using furnishings that
can be easily rearranged to accommodate parties of various sizes. Our restaurants also feature distinct dining and bar areas
ith select restaurants having patio seating. w
We strategically place approximately 40 televisions and up to seven projection screen televisions throughout the
restaurant to allow for easy viewing. These televisions, combined with our sound system, Buzztime® Trivia and assorted
video games, provide a source of entertainment for our guests and reinforce the energetic nature of our concept. We tailor the
content and volume of our video and audio programming to reflect our guests’ tastes. We believe the design of our
r staurants enhances our guests’ experiences, drives repeat visits and solidifies the broad appeal of our concept. e
All of our menu items are made-to-order and are available for take-out, which approximated 16% of restaurant sales for
company-owned restaurants in 2006. Many of our restaurants have separate parking spots for our take-out guests.
C
urrent Restaurant Locations
As of December 31, 2006, we owned or franchised 429 Buffalo Wild Wings restaurants in 37 states, of which 139 were
company-owned and 290 were franchised. In 2007, we plan to achieve over 15% unit growth and open over 20 new
ompany-owned restaurants. c
Our company-owned restaurants range in size from 4,000 to 7,600 square feet, with an average of approximately 5,600
square feet for restaurants that have opened in the last three years. We anticipate that future restaurants will range in size
from 4,500 square feet to 6,400 square feet with an average cash investment per restaurant of approximately $1.2 million,
excluding preopening expenses of approximately $180,000. From time to time, we expect that our restaurants may be smaller
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