Buffalo Wild Wings 2008 Annual Report Download - page 5

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cash investment would be significantly higher. In 2008, we acquired eight restaurants from Avado Brands which are 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., although 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 both company-owned and 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, 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, ability to get trade dress, and parking. Final approval by one
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® restaurants from our competitors and that showcases our food and our brand in a fun and
energetic atmosphere. These efforts include national 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 2008 we promoted the rollout of our new
Slammers™ and Wild Flatbreads™ menu items as well as developed two new TV commercials highlighting why 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 driving sales and
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 board includes six franchisees, elected annually by
their peers, 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, developing and supporting our highly qualified
management teams and employees and implementing 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 four other managers depending on sales volume of the restaurant. We utilize Regional Managers to oversee our
General Managers in our company-owned locations, ensuring that they receive the training and support necessary to
effectively operate their restaurants. Currently, we have 31 Regional Managers who oversee three to ten restaurants each. As
we expand geographically, we expect to add additional Regional Managers. Similarly, our franchised restaurants receive
operational guidance from our twelve Franchise Consultants, who oversee 15 to 50 restaurants each. We have seven Directors
of Operations who provide leadership to the Regional Managers and Franchise Consultants.
Kitchen Operations. An important aspect of our concept is the efficient design, layout and execution of our kitchen
operations. Due to the relatively simple preparation of our menu items, the kitchen consists of fryers, grill and food prep