Buffalo Wild Wings 2008 Annual Report Download - page 4

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Growth 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 expansion strategy in those markets and identifying sites for company-
owned and franchised restaurants. Our growth strategy is moving toward a mix of approximately 40% company-owned
restaurants and approximately 60% franchised restaurants. At the end of 2009, we anticipate that approximately 36% of the
restaurants will be company-owned.
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
new restaurants by existing and new franchisees, focusing on multiple-unit area development agreements.
The 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: Sweet BBQ™, Teriyaki™, Mild™, Parmesan Garlic™, Medium™, Honey
BBQ™, Spicy Garlic™, Asian Zing®, Caribbean Jerk™, Hot BBQ™, Hot™, Mango Habanero™, Wild® and Blazin’ ® . 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 and
boneless wings, our menu features a wide variety of food items including chicken tenders, Wild Flatbreads™, 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, our research and
development department continuously 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
with many of the restaurants having patio seating.
We strategically place approximately 40 televisions and up to 13 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 restaurants enhances
our guests’ experiences, drives repeat visits and solidifies the broad appeal of our concept.
All of our menu items are made-to-order and are available for take-out, which approximated 14% of restaurant sales for
company-owned restaurants in 2008. Many of our restaurants have separate parking spots for our take-out guests.
Current Restaurant Locations
As of December 28, 2008, we owned or franchised 560 Buffalo Wild Wings restaurants in 38 states, of which 197 were
company-owned and 363 were franchised. In 2009, our goal is to achieve 15% unit growth and open approximately 84 new
company-owned and franchised restaurants.
Our company-owned restaurants range in size from 4,500 to 9,800 square feet, with an average of approximately 5,700
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 6,500 square feet with an average cash investment per restaurant of approximately $1.5 million,
excluding preopening expenses of approximately $225,000. 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