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

Is the largest sports bar franchise in the U.S. a touchdown of an investment? Let’s take a closer look.

By Luca Piacentini1851 Franchise Managing Editor

8:08AM • 06/04/23

LAST UPDATED: May 10, 2023

FRANCHISE WEBSITE: https://buffalowildwingsfranchising.com/

NUMBER OF LOCATIONS: 1,196

REPORTED COST TO GET IN: $2,926,500 to $4,604,800

REPORTED ROI (Item 19): $3,118,546 (average unit volume)

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.

How Many Buffalo Wild Wings Locations Are There?

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

What Is the Buffalo Wild Wings Business Model?

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.

Design elements required include:

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

How Much Can Buffalo Wild Wings Franchise Owners Make?

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

Inline

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

Freestanding

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

End-Cap

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

Inline

Number of Sports Bars: 25
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

Freestanding

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

End-Cap

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

C. All Sports Bars

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.

All Affiliate-Owned Sports Bars

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%

All Franchised Sports Bars

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%

All Sports Bars

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?

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

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

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