Buffalo Wild Wings 2006 Annual Report Download - page 5

or larger or cost more or less than our targeted range, depending on the particular circumstances of the selected site or market.
Also, from time to time, we expect to purchase the building or the land and building for certain restaurants, in which case the
cash investment would be significantly higher.
Our restaurants are typically open on a daily basis from 11 a.m. to 2 a.m. Closing times vary depending on the day of
the week and city and state regulations governing the sale of alcoholic beverages. Our franchise agreements require
franchisees to operate their restaurants for a minimum of 12 hours a day.
Site Selection and Development
Our site selection process is integral to the successful execution of our growth strategy. We have processes for
identifying, analyzing and approving new markets, as defined by the A.C. Nielson designated market areas in the United
States. In selecting designated market areas, we collect and review restaurant industry data relating to restaurant sales,
spending on food away from home and expected restaurant growth in the market, as well as market demographics, population
data and relative media costs for radio and television advertising. Once a market is identified, we use a trade area and site
selection evaluation system, which has been customized for the requirements of the Buffalo Wild Wings system, to assist in
identifying suitable trade areas within that market and suitable sites within identified trade areas. Criteria examined to
determine appropriate trade areas include the presence of a casual dining corridor, projected growth within the trade area, the
locations of key big box retailers and multi-screen movie theaters in the neighborhood, key demographics and population
density, drive time and trade area analysis and other quantitative and qualitative measures. Once a suitable trade area is
identified, we examine site-specific details including visibility, signage, access and parking. Final approval by two or more
members of our executive management team is required for each company-owned site. At least one senior franchise
executive reviews each franchise site.
M
arketing and Advertising
We have created a unique marketing program designed to communicate a distinctive and consistent brand that
differentiates Buffalo Wild Wings from our competitors and that showcases our food in a fun and energetic atmosphere.
These efforts include marketing campaigns and irreverent, award-winning advertising to support both our company-owned
and franchised restaurants. The primary goal of these efforts is to build brand awareness throughout the United States. In
addition, advertising campaigns are also designed to: i) drive positive same-store sales through additional visits by our
existing guests and visits by new guests, ii) increase margins, iii) increase average order size, and iv) support strong
r staurant openings. e
Marketing Campaigns. Our primary marketing campaigns focus on a particular menu item, day or daypart in an
attempt to drive traffic and build brand awareness. For example, in 2006 we developed a campaign to promote the rollout of
our new “Ribs & Combos” menu items. Our secondary marketing campaigns focus on reaching beyond the core Buffalo
Wild Wings guest. Given our strategy to be a neighborhood destination, community marketing is also a key to developing
brand awareness in each market. Our restaurants actively sponsor local sporting teams and sporting events to drive guest
traffic associated with those activities.
Advertising. Our media advertising focuses on positioning the Buffalo Wild Wings brand as an inviting neighborhood
dining location. Our commercials, print advertisements and radio spots are irreverent by design and have been recognized in
the restaurant and advertising industries for their creativity.
Franchise Involvement. System-wide campaigns and promotions are developed and implemented with input from the
Buffalo Wild Wings National Advertising Advisory Board. This volunteer franchisee board is elected by franchisees annually
and meets regularly to review marketing strategies, provide input on advertising messages and vendor co-op programs, and
discuss marketing objectives.
Operations
Our management team strives for operational excellence by recruiting, training and supporting the highest quality
anagement teams and employees and through the implementation of operational best practices within our restaurants. m
Restaurant Management. Our management structure consists of a general manager, one assistant general manager and
up to three other managers depending on sales volume of the restaurant. We utilize regional managers to oversee our general
managers, ensuring that they receive the training and support necessary to effectively operate their restaurants. Currently, we
have 16 regional managers who oversee four to nine restaurants each. As we expand geographically, we expect to add
additional regional managers. We have five Directors of Operations who lead the Regional Managers.
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