Buffalo Wings & Rings enters epic-growth mode

“Sometimes in business we speak about a silver bullet, but I don’t think there was one thing in particular for our brand,” Philip Schram, executive vice president of business development, said of the chain with 45 locations in the United States and 12 international units.

Since Schram and business partners Nader Masadeh and Haytham David acquired the Cincinnati-based brand in 2005, Buffalo Wings & Rings’ holistic approach has invested in every facet of the business, from the menu to the building design to its people capability. Having solidified the brand’s foundation, the team is looking to supercharge franchise growth this year with a $30,000 waiver off its franchise fee and to carry that momentum into the next two years with accelerated development.

The brand’s revamped prototype, upgraded food and beverages, and updated service model have contributed to a nine-year run from 2005 to 2013 in which the average unit volume increased an average of 13 percent year-over-year. In 2013, more than two-fifths of the brand’s locations reported an average unit volume greater than $2 million, with the top one-fifth of locations hitting $2.4 million in annual sales, Masadeh said.

“We’ve worked hard on the brand every day for the past 10 years, and in that time the AUV has increased 13 percent every year,” Schram said. “We’ve increased the return to franchisees, but it hasn’t been a spike. It’s been consistent.”

The franchisees’ growth in their profitability not only has strengthened their interest in opening more stores but also been a major source of appeal to new operators, Schram said. When the corporate team discussed ways to further support the franchisees this year, “the discussion turned to money,” he said, and the brand arrived at the $30,000 discount on the franchise fee to celebrate Buffalo Wings & Rings’ 30th anniversary.

“It was a simple idea, mostly to benefit existing franchisees, but because of that simplicity, it has made new franchisee’s decisions to move forward with us much easier,” Schram said. “Growth has led to more growth, and now we’re heavily in expansion mode. Whenever you get that momentum and are viewed as a growing company, that always interests prospective franchisees.”

President and chief executive Masadeh said this year was the right time for an aggressive program to spur expansion because of the work that had been done the past five years on improving Buffalo Wings & Rings’ fundamentals and unit economics.

“During that time, the economy was not in the best shape, so it was the perfect time to work on the foundation of the company,” Masadeh said. “But in late 2013 and early this year, we wanted to capitalize on all that work and start accelerating franchise development.”

In addition to the 30th anniversary incentive of a discounted franchise fee, Buffalo Wings & Rings also has relaunched the brand in its core Cincinnati market to incorporate the new menu, décor and service elements that have driven results so far in newer markets like Texas. Masadeh added that two other pillars of the current growth strategy — a refinement of Buffalo Wings & Rings’ corporate culture and greater communication and alignment of the whole strategy to franchisees and corporate staff — would be ongoing.

“Those four things were forward-looking strategies, but we’re not going to forget about our existing franchisees, either,” he said, adding that Buffalo Wings & Rings would be fanning out across the country to help ensure all current franchisees are supported in bringing their operations and building designs up to the new brand standards.

The chain’s culinary team also worked hard to achieve to a 3-to-1 ratio of food-to-alcohol sales, which has helped food costs and profitability, Masadeh added.

Buffalo Wings & Rings’ growth plans, which internally are called “50 in ’15, 60 in ’16,” represent an acceleration to between 10 and 12 openings per year, but the brand will continue to play the long game and shoot for sustainable growth in quality sites with the best possible franchisee candidates, Schram said. While he is busier than ever finding prospective real estate and franchise operators, final approval of either is determined by the brand’s executive committee comprising the heads of every department, from marketing and operations to culinary and IT, he said.

“This sharing of power keeps the company on track and focused on long-term growth with the right people,” Schram said.