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BUFFALO WILD WINGS
Transcript of BUFFALO WILD WINGS
Porter's Competitive Forces
INDUSTRY KEY SUCCESS FACTORS
RESOURCES and COMPETENCIES
2 CLOSEST RIVALS
Competitive Strength Analysis
Buffalo Wild Wings
Buffalo Wild Wings
Key Success Factor /
Male Sports Fans
Name Recognition, bwld experience, broad beer offerings, broad wing offerings, strong business growth model used to decrease risks in new markets.
Lower profit opportunity with franchised stores, currently narrow menu choices
Creativity with menu, greater international expansion
Other restaurants offering wings, increase of minimum wage, healthcare reform, the economy, chicken wing pricing
Buffalo Wild Wings Company’s mission is to “WOW people every day”.
WOW their guests every day by achieving the highest level of satisfaction with an extraordinary focus on friendly service, food, fun and value
WOW their team members by providing the same respect, positive encouragement and fair treatment within the organization that Team Members are expected to share externally with every guest
WOW the communities where they do business by practicing good citizenship and helping to make these communities better places to live, work and grow
WOW their stakeholders with outstanding, industry-leading financial results and operational performance
A full bar and an open layout, which appeals to sports fans and families alike.
Approximately 50 TVs screens which gives their customers the option to watch sports or an popular programs.
Open new markets to a point to name recognition and achieve operation efficiencies
One store at a time
Work with different organizations
-Events (Super Bowl)
-Focused in differentiation
Events (Super Bowl)
1) Net worth: $5+ million, personal guarantee of the franchisee.
2) $2+ million in liquid assets, personal guarantee of the franchisee
3) At least 5 years as a multi-unit restaurant owner / operator
4) Ability to develop 3-5 restaurants within your territory
5) A restaurant location with at least 100,000-150,000 people within a 5 mile radius.
1) Franchise Fee of $75,000
2) Option fee of $15,000 for each additional restaurant option within a territory.
3) The initial investment is estimated to be between $1,200,000 and $1,700,000 for each restaurant.
1) To qualify as a Wingstop franchisee, we require a minimum net worth of $400,000 per restaurant, of which $200,000 must be liquid
2) The initial investment is estimated to be between $252, 621 and $ 554,848
3) Franchise Fee of $30,000
4) Option Fee of $22,500 for additional locations, 10 year agreements
- (ordering systems & inventory tracking, smart phone activities, look up locations, placing orders, making reservations)
-(with perishable goods, timely distribution is critical, reliability of suppliers, reputation risks).
Managers conduct line checks twice a day, assessing temperatures, equimpment and first-in/ first out compliance.
Signage around the back of the house reminds employees to wash hands and follow various established food safety protocols.
Color-coding is another key strategy at Buffalo Wild Wings. Yellow gloves are used for raw chicken, while cooked food is handled with clear gloves. Daydots bags and labels are all color-coded as well, and certain colors of spatulas and tongs are established for foods such as burgers and chicken.
"Our teamwork and dedication really help make food safety what it should be-part of our corporate culture."
BWW's Director of Research
Company Web Site
We have a passion for sports and we believe there is a champion in every child. It’s the core of our vision for community giving.
Buffalo Wild Wings Bowl
Boys and Girls
Known for variety of:
Driving Forces in Industry
Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of October 15, 2013, the company operated approximately 1,500 restaurants. Chipotle Mexican Grill, Inc. was founded in 1993 and is based in Denver, Colorado
Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. The company operates in three segments: Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The Bakery-Cafe Operations segment operates company-owned bakery-cafes under the Panera Bread, Saint Louis Bread Co., or Paradise Bakery & Café names that offer fresh baked goods, made-to-order sandwiches, soups, salads, pasta dishes, custom roasted coffees, and other complementary products through on-premise sales, as well as provide catering services.
Founded in 1994 and headquartered in Dallas, Texas, Wingstop has more than 600 restaurants open across the United States, Mexico, Russia and Singapore. The "Wing Experts" menu features classic and boneless wings with 10 bold, distinctive flavors including Original Hot, Cajun, Atomic, Mild, Teriyaki, Lemon Pepper, Hawaiian, Garlic Parmesan, Hickory Smoked BBQ and Louisiana Rub. Wingstop's wings are always cooked to order, sauced and tossed and served with a variety of house-made sides including Wingstop's award winning hand-cut seasoned fries. Wingstop has experienced 10 consecutive years of positive sales increases, was named a Top 10 Best Franchise Deal by QSR magazine, and has been voted "best wings" in markets across the country. Wingstop is owned by affiliates of Roark Capital Group, an Atlanta-based private equity firm that specializes in business and consumer service companies with attractive growth prospects and revenues ranging from $20 million to over $3 billion.
Hooters of America, LLC is the Atlanta-based operator and franchiser of over 452 Hooters locations in 28 countries. The privately held corporation owns 160 units. The first Hooters opened October 4, 1983, in Clearwater, Florida. The Original Six founders were quickly detained for impersonating restaurateurs, but fortunately for America, they were soon allowed to go about their business. During its history, the Hooters concept has remained true to its roots. The current logo, uniform, menu and ambiance are all very similar to what existed in the original store. This consistency is understandable given Hooters continued success and high ranking amongst the industry's growth leaders.
Breath Line of Product
The firm can take advantage of the flexibility of its service model to minimize the effects of the volatility of chicken wing prices. The firm can also adjust the services it offers to suit the specific requirements of its customers. The management is experienced and stable, a factor that makes it able to deal with the threat of stiff competition in the restaurant industry. Its business growth model will enable it minimize the effects of a recession in one state by spreading its presence into new markets
The firm’s business growth model that facilitates the transfer of risks associated with expansion to new markets is useful in enabling it to move into markets where it has not yet established stores. It can also help it to explore the international market and start operating internationally. The firm can decentralize its stores to minimize the effects of a recession. It can also evaluate the reliability of its chicken wing supplier to ensure timely and efficient deliveries to avoid unnecessary delay in supplies.
Buffalo Wild Wings has been successful through its:
Opened new markets through franchise
Expand through company owned locations
Specialized beer and wings as well as broadens the variety of each flavor
Market their community involvement
Expand outside U.S. to other countries
Be aware of other competition
Dedicated to Excellence
Strong balance sheet
Open up 1 location as franchise and then another company owned.
Stock price- $151.91
: Stock Price- $184.81
: Stock Price- $593.41
Buffalo Wild Wings started back in 1981 when a couple of guys Scott Lowery and Jim Disbrow from Kent, Ohio had a serious craving for New York-style Buffalo chicken wings. Back then, in the Midwest, you were more likely to win the lotto, get struck by lightning than to find a place that served authentic Buffalo-style wings. So instead of making the trip to New York to satisfy their craving, they had a better idea: to open their own Buffalo wing joint, create an affordable place where people could hang out, grab a beer and devour some great food, including their award-winning chicken wings.
What is BWW? Well if you love wings, beers and sports, this is the place you have to go. These are the three things for what they are recognized. Buffalo Wild Wings® is the ultimate place to get together with your friends, watch sports, drink beer and eat wings. If you do not like any of those things, they still might have something you would like
With headquarters in Minneapolis, Minnesota, Buffalo Wild Wings was originally founded with the name of Buffalo Wild Wings & Weck in 1982 in Columbus, Ohio, later in 1998, they officially changed their name to Buffalo Wild Wings Grill & Bar to better describe their restaurants.
Since then, you could say things have taken off. Today, each Buffalo Wild Wings® boasts wall-to-wall HDTVs and big screens, Golden Tee, Buzztime® Trivia, and a full menu for dine-in or Take Out. And for all those thirsty guests – a full bar with an entertaining atmosphere.
BWW has grown to have about 935 restaurants in 42 states within the U.S and Canada and continues to expanding around the world. In 1991, they began their franchising program. Later in 2003, they completed an initial public offering and became a publicly-held company.
Threat of Substitutes
: (High) because consumers can easily switch their minds because of prices, or depending on their likes. They can go eat to McDonalds for a burger, Subway for a sandwich, and so on.
Bargaining Power of Buyers
: (Moderate) because as there are so many substitutes in the industry, it will depend on the loyalty or importance of the seller to the customer. What can the seller offer better and how flexible to the consumer needs is.
Bargaining Power of Suppliers: (Moderate-High) because there is a big amount of suppliers for this industry that cover the market, and produce quality of product from where the sellers can choose from
Threat of New Entrants
: (Moderate) because although any competitor can entry in the restaurant industry, it is not easy to entry at the same level of quality and financially the other competitor.
Rivalry Among Competitors
: (High) because of the numerous of successful competitors with the similarities of BWW such as Hooters, Wing Stop, and any place that sells buffalo chicken wings
The company is in the restaurant industry and services sector. Restaurant industry sales growth is closely tied to economic and demographic trends, which varies by region and state’s population density. Driven by a stronger economy and historically high levels of pent-up demand among consumers, the forecast for 2014 in the restaurant industry is as follows:
billion: Restaurant industry sales.
Restaurant industry sales increase in nominal terms.
: Restaurant industry sales increase in real (inflation-adjusted) terms.
: Restaurant locations in the United States.
million: Restaurant industry employees.
: Restaurant workforce as part of the overall U.S. workforce.
Restaurant industry share of the food dollar.
Eight in 10
: Restaurant owners who started their industry careers in entry-level positions.
Nine in 10
: Salaried restaurant employees who started as hourly workers.
Nine in 10
: Restaurants with fewer than 50 employees.
Seven in 10
: Restaurants that are single-unit operations.
Although this will represent the fifth consecutive year of real growth in restaurant sales, the gains remain below what would be expected during a normal post-recession period due to a range of challenges.
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