Buffalo Wild Wings 2022

Oct 24, 2022 | Insights, Restaurant Research

Midcap Banner
Midcap Banner

Buffalo Wild Wings Executive Summary

Buffalo Wild Wings (BWW) enjoys a unique positioning as the largest sports bar brand (also 2nd largest casual chain) that is famous for its wings flavored with 24 sauces & seasonings in ascending order of heat to go with a side of celery & carrots with choice of 2 dipping sauces. BWW replicates the social and interactive energy of a stadium with wall-to-wall high-def TVs, creating a cost effective and enjoyable place for guests to watch games and hang-out with friends. The chain’s well-established brand equity around wings, beer & sports is extended by an offer of beers, burgers, sandwiches and salads. Brand strategy includes the following objectives: (1) leverage menu items beyond wings (and their dramatic price volatility) in order to broaden the brand’s appeal beyond sports fans; (2) leverage improvements to product quality, cook time & alcohol offerings in order to further differentiate from local sports bars; and (3) communicate a compelling reason for consumers to leave their homes in order to come socialize in-restaurant. Fortunately, the chain has recently been able to emphasize price point deals fueled by a -30% drop in wing costs for the YTD period ending 8/31/22, helping to address the current economic backdrop. BWW’s value constructs include: Happy Hour deals; BOGO free Boneless Thursdays; BOGO 50% Traditional Wings Tuesdays; $9 Wing Bundles with fries; and lunch combos at $8, $10 & $12 price points. Further, interesting menu innovation includes: Bird Dawgs (hand-breaded chicken tenders with hot dog toppings & bun); a new Saucy Chicken Sandwich starting at $5.99; and $9.99 Boneless Bar Pizza (available in Buffalo or Honey BBQ). BWW’s carry-out business benefits from a designated to-go room, separate entrance & designated parking places and off-premise has extended its market reach. Having said all this, BWW is vulnerable to wing cost volatility which increases the risk to top-line sales and margins while making it difficult to provide stable menu pricing. Significant COGs underperformance reflects the challenge of its high bone-in wing mix and it is notable that BWW’s unit-level EBITDAR significantly underperforms its own system-high, reflecting elevated food & labor costs. In conclusion, BWW enjoys considerable brand equity as the largest and perhaps most iconic sports bar chain with a positioning that currently benefits from manageable wing prices.

Buffalo Wild Wings Market Share
Buffalo Wild Wings Market Share
Contact RR Button
No Bull Economics
Restaurant Research

Email Sign-up

Jack in the Box Corporate Insights

Jack in the Box results reflected an improvement in: dining room openings (60% of system); innovation, upsell & add-ons sales; digital progress which is helping frequency; and late-night.

How to Circumvent Food Shortages?

The vulnerabilities of a long-distance supply chain have become very evident over the last couple of years, especially when it comes to farming.

This Week in Summary 11/18/2022

We want to spotlight Target this week which provides valuable insight on consumer spending.

How Would You Value the Federal Reserve?

Here is an idea: let’s take the Federal Reserve public in the world’s largest IPO.

How to Pass Along Inflationary Costs Without Losing Traffic?

Wendy’s is avoiding standardized menu price increases and turning to strategic increases designed not to price out lower income consumers.

Investors in Retail Stocks Think Consumers are Back

Recent retail stock gains would suggest that investors are confident in consumer strength, despite continuing inflationary issues.

Papa John’s & Chili’s Reveal the Plight of Cash Strapped Consumers

The relevant question remains whether consumers who are increasingly cash-strapped can be convinced to pay more for higher quality levels?

This Week in Summary 11/11/2022

Market melt up & the midterm elections

DoorDash’s Grip on Labor Costs is Funding New Investments

Doordash’s platform generated +10% of all restaurant industry sales.

3Q Results for Bloomin’, Texas Roadhouse & Cheesecake

Full serve restaurant sales performance is currently a function of customer demographics.

Digital Marketing Opportunities
Restaurant Research

A Restaurant Research LLC Company