Franchise Deep Dive: Buffalo Wild Wings Franchise Costs, Fees, Profit and Data

Company overview

Buffalo Wild Wings is a fast casual restaurant franchise concept with a sports bar theme, known for its 21 signature sauces and seasonings, walls of flat screen TVs and inviting game-night atmosphere. Today, as a franchise opportunity, the brand competes in the casual dining sector against other sports bars and casual dining chains.

Buffalo Wild Wings was founded in 1982 by three business partners who had recently moved to Ohio from Buffalo, New York and couldn’t find any good buffalo wings. Initially, the restaurant was called Buffalo Wild Wings & Weck as it also served beef on weck, a type of sandwich popular in New York.

The business partners opened additional locations in Ohio, Indiana and Steamboat Springs, Colorado before franchising in 1992. Over the next few years, Buffalo Wild Wings continued to grow, and in 1995, the brand began to move away from a college sports bar to casual dining. By the end of the 1990s, Buffalo Wild Wings had grown to 100 locations and this growth continued into the next couple decades. In 2010, Buffalo Wild Wings launched its first international locations in Canada.

In November 2017, Roark Capital Group and The Wendy’s Company, co-owners of Arby’s Restaurant Group, purchased the chain for about $2.4 billion plus debt. Arby’s Restaurant Group was renamed Inspire Brands, which is now the parent company to Arby’s, Dunkin’, Jimmy John’s and several other restaurant franchise brands.

Today, Buffalo Wild Wings has 1,196 locations in all 50 states and Washington, D.C., Canada, India, Mexico, Oman, Panama, Philippines, Saudi Arabia, United Arab Emirates and Vietnam

Buffalo Wild Wings locations are typically large, freestanding buildings or end caps with a patio, designed to be inviting for both families and sports fans. Each restaurant features plenty of TVs for watching sports and a menu that focuses on its namesake Buffalo-style wings, along with other items like burgers, sandwiches and salads. There's also a full-service bar offering a range of alcoholic beverages.

• Dominant bar anchoring indoor and outdoor dining areas

• Free flowing and flexible seating areas

• VIP spaces for guests

• Stadium-like A/V technology with LED modular screens

• Dedicated takeout access for guests

Financial performance

This Item 19 includes financial results from Buffalo Wild Wings’ “2021 Fiscal Year,” which is the period from January 4, 2021 through January 2, 2022. There were 1,196 Buffalo Wild Wings Sports Bars operating as of the end of Buffalo Wild Wings’ 2021 Fiscal Year.

2021 Average, Median, Highest and Lowest Unit Volume:

A. Affiliate-Owned Sports Bars

• Number of Sports Bars: 25

• Average Unit Volume: $3,269,537

• Median Unit Volume: $3,266,901

• Highest Unit Volume: $4,503,400

• Lowest Unit Volume: $1,714,876

• Number and Percentage Above Average: 12/48%

• Top 3rd Average Unit Volume: $4,115,587

• Middle 3rd Average Unit Volume: $3,215,448

• Bottom 3rd Average Unit Volume: $2,371,821

• Number of Sports Bars: 325

• Average Unit Volume: $3,109,265

• Median Unit Volume: $3,052,356

• Highest Unit Volume: $6,125,993

• Lowest Unit Volume: $1,386,971

• Number and Percentage Above Average: 151/46.1%

• Top 3rd Average Unit Volume: $4,009,448

• Middle 3rd Average Unit Volume: $3,041,649

• Bottom 3rd Average Unit Volume: $2,268,362

• Number of Sports Bars: 310

• Average Unit Volume: $2,974,140

• Median Unit Volume: $2,904,451

• Highest Unit Volume: $6,310,459

• Lowest Unit Volume: $1,426,857

• Number and Percentage Above Average: 147/47.3%

• Top 3rd Average Unit Volume: $3,852,385

• Middle 3rd Average Unit Volume: $2,915,255

• Bottom 3rd Average Unit Volume: $2,146,254

All Affiliate-Owned Sports Bars

• Number of Sports Bars: 660

• Average Unit Volume: $3,051,868

B. Franchised Sports Bars

• Average Unit Volume: $3,423,105

• Median Unit Volume: $3,349,652

• Highest Unit Volume: $5,293,152

• Lowest Unit Volume: $1,668,571

• Number and Percentage Above Average: 12/48.0%

• Top 3rd Average Unit Volume: $4,424,753

• Middle 3rd Average Unit Volume: $3,268,741

• Bottom 3rd Average Unit Volume: $2,450,614

• Number of Sports Bars: 280

• Average Unit Volume: $3,305,771

• Median Unit Volume: $3,283,056

• Highest Unit Volume: $6,948,708

• Lowest Unit Volume: $1,226,280

• Number and Percentage Above Average: 137/48.9%

• Top 3rd Average Unit Volume: $4,379,900

• Middle 3rd Average Unit Volume: $3,245,159

• Bottom 3rd Average Unit Volume: $2,280,703

• Number of Sports Bars: 222

• Average Unit Volume: $3,046,342

• Median Unit Volume: $3,024,974

• Highest Unit Volume: $6,967,834

• Lowest Unit Volume: $1,141,665

• Number and Percentage Above Average: 109/49.1%

• Top 3rd Average Unit Volume: $4,120,044

• Middle 3rd Average Unit Volume: $2,993,192

• Bottom 3rd Average Unit Volume: $2,025,788

All Franchised Sports Bars

• Number of Sports Bars: 527

• Average Unit Volume: $3,202,052

• Number of Sports Bars: 1,187

• Average Unit Volume: $3,118,546

Part 2 – Comparison of 2019-2021 Fiscal Years

The following table shows the year-over-year increases or decreases (as applicable) for the annual AUVs of the 2019 Sports Bars for the 2019 Fiscal Year, the 2020 Sports Bars for the 2020 Fiscal Year and the 2021 Sports Bars for the 2021 Fiscal Year.

• 2019 Average Unit Volume: $3,036,415

• 2020 Average Unit Volume: $2,501,661

• 2021 Average Unit Volume: $3,051,868

• % Change 2021 Fiscal Year vs. 2020 Fiscal Year: 22.0%

• % Change 2021 Fiscal Year vs. 2019 Fiscal Year: 0.5%

• 2019 Average Unit Volume: $3,075,403

• 2020 Average Unit Volume: $2,601,865

• 2021 Average Unit Volume: $3,202,052

• % Change 2021 Fiscal Year vs. 2020 Fiscal Year: 23.1%

• % Change 2021 Fiscal Year vs. 2019 Fiscal Year: 4.1%

• 2019 Average Unit Volume: $3,055,061

• 2020 Average Unit Volume: $2,545,841

• 2021 Average Unit Volume: $3,118,546

• % Change 2021 Fiscal Year vs. 2020 Fiscal Year: 22.5%

• % Change 2021 Fiscal Year vs. 2019 Fiscal Year: 2.1%

How Much Does It Cost to Open a Buffalo Wild Wings?

The estimated total investment necessary to begin the operation of a Buffalo Wild Wings (new freestanding and non-traditional locations) franchise, based on Item 7 of the company’s 2022 FDD, is as follows:

• Fees Related to Site Approval: $1,200 to $53,800

• Initial Franchise Fee: $25,000

• Opening Team Training Fee: $0 to $15,000

• Reimbursement of Expenses for Opening Team: $0 to $15,000

• Architecture Fees (based upon utilization of national firm): $100,000 to $160,000

• Construction and Leasehold Improvements: $1,430,000 to $1,900,000

• Furniture, Fixtures, Equipment and Other Fixed Assets: $775,000 to $925,000

• Audio/Visual Equipment: $275,000 to $425,000

• Computer POS System/Kitchen Display Unit: $66,400 to $75,000

• Office Equipment and Supplies: $6,000 to $13,000

• Sports Memorabilia: $12,500 to $26,500

• Signage and Graphics (excluding pylon or monument signage): $43,000 to $100,000

• Training Expenses: $8,000 to $12,000

• Initial Inventory: $15,000 to $19,000

• Insurance: $14,400 to $48,000

• Additional Funds for 3 Months: $100,000 to $150,000

• Rent: $7,500 to $40,000

• Lease and Utility Security Deposits: $10,000 to $20,000

• Grand Opening Advertising: $12,500

• Liquor License: $5,000 to $500,000

• Professional Fees: $20,000 to $70,000

• Total Estimated Buffalo Wild Wings Franchise Costs: $2,926,500 to $4,604,800

What Is the Franchise Fee for Buffalo Wild Wings?

Buffalo Wild Wings’ initial franchise fee, according to Items 5 and 6 of the company’s 2022 FDD, is $25,000.

Who is the Leadership of Buffalo Wild Wings?

• Sally Smith - President and CEO

• John Bowie - Brand President

• Tristan Meline - Chief Marketing Officer

• Rachel Richal - Vice President of Training

• Frank Sickelsmith - Chief Development Officer

• Phil Albanese - Senior Vice President Company Operations

• Dan Dormer - Director of Operations

What Helpful Articles Can I Read to Learn More About Buffalo Wild Wings?

• Buffalo Wild Wings May Soon Offer Sports Betting

• What Buffalo Wild Wings’ New Wing-Frying Robot Could Mean for Franchisees

• Buffalo Wild Wings Franchise: Bring the Heat to Your Market

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