Buffalo Wild Wings 2011 Annual Report Download - page 4

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North American Growth Strategy
Our growth strategy involves opening company-owned and franchised restaurants in both new and existing domestic
markets and new countries. We believe that we have established and continue to expand the necessary infrastructure and
control systems to support our disciplined growth strategy and that our concept can support about 1,500 restaurants in North
America. We have developed procedures for identifying new opportunities in both domestic and international markets,
determining our expansion strategy in those markets and identifying sites for company-owned and franchised restaurants. We
have a mix of approximately 40% company-owned restaurants and approximately 60% franchised restaurants, with
significantly all of our revenues derived from US operations. Our current North American growth strategy is to continue to
open both company-owned restaurants and franchised restaurants.
In most of our existing markets, we plan to continue to open new company-owned restaurants until a market is
penetrated to a point that will enable us to gain marketing, operational, cost, and other efficiencies. We intend to enter new
domestic and international 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. We may grow our company-owned restaurants through the acquisition of franchised restaurants.
International Growth Strategy
We plan to embark upon our international growth by adding company-owned restaurants, through development
agreements with new and existing franchisees, and, potentially, through joint venture partnerships. A typical international
franchise development agreement provides for payment of development fees and franchise fees in addition to subsequent
royalty fees based on the gross sales of each restaurant. We expect development agreements and joint ventures for
international locations to remain limited to organizations having significant experience as restaurant operators and proven
financial ability to support and develop multi-unit and multi-brand operations.
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, Jammin’ Jalapeno
™
, Asian Zing
®
, Caribbean Jerk, Thai Curry
™
, Hot BBQ, Hot, Mango Habanero
™
, Wild
®
and
Blazin’
®
; or signature seasonings: Buffalo, Desert Heat
®
, Chipotle BBQ, and Salt & Vinegar. Our chicken wings can be
ordered in numbers ranging from six to 100 wings, with larger orders available for parties. Our sauces and seasonings
complement and distinguish our wings and other menu offerings to create a bold flavor profile for our guests. In addition to
traditional and boneless chicken wings, our menu features a wide variety of food items including Sharable appetizers, Wild
Flatbreads™, specialty hamburgers and sandwiches, wraps, Buffalito
®
soft tacos, and salads. We also provide a 12 & Under
Menu option for kids.
Our restaurants feature a full bar which offers an extensive selection of 20 to 30 domestic, imported, and craft 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 introduces 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 sports grill and bars that provide a high-energy atmosphere where friends gather for camaraderie
and to celebrate competition, as well as 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, and many of the restaurants have patio seating.
We strategically place approximately 50 high-definition flat-screen monitors and up to 10 projection screens
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 13% of restaurant sales for
company-owned restaurants in 2011. Many of our restaurants have separate parking spots for our take-out guests.