Buffalo Wild Wings 2007 Annual Report Download - page 5

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5
excluding preopening expenses of approximately $180,000. From time to time, we expect that our restaurants may be smaller
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.
The eight restaurants acquired from Avado Brands will be larger than our typical restaurant ranging from 6,500 square
feet to 9,800 square feet.
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 assigning undeveloped markets for either company-owned or franchise development. Once a
market is assigned, 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.
Marketing 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 and our brand 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 restaurant openings.
Marketing Campaigns. Our primary marketing campaigns focus on our experience or a particular menu item, day or
daypart in an attempt to drive traffic and build brand awareness. For example, in 2007 we developed a campaign to promote
the rollout of our new “Ribs & Combos” menu items as well as developing a new TV commercial highlighting YOU HAVE
TO BE HERE™ at Buffalo Wild Wings. 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
management teams and employees and through the implementation of operational standards and best practices within our
restaurants.
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