Buffalo Wild Wings recently celebrated the opening of its 100th Go location in New York City, marking a significant milestone for the chain. This quick-service offshoot allows customers to enjoy the brand’s famous chicken wings and classic menu items through delivery and takeout orders. The move is part of Buffalo Wild Wings’ efforts to enhance its brand presence and provide customers with more convenience.
Expansion Strategy
Since 2018, Buffalo Wild Wings has been under the umbrella of Inspire Brands, which is supported by Roark Capital. Following a merger with Arby’s, Inspire Brands has expanded its portfolio to include Sonic Drive-In, Jimmy John’s, Dunkin’, and Baskin-Robbins. With aspirations to go public in the coming years, Inspire Brands aims for a valuation of $20 billion.
Market Position
Buffalo Wild Wings currently holds the title of the second-largest casual-dining chain in the bar and grill category, capturing a market share of 14.4%. Despite facing challenges in the casual-dining segment, Buffalo Wild Wings has established dominance in the chicken wing market, serving over 3 million gallons of dressing in 2023. This success contrasts with competitors like Chili’s and Red Robin, which have struggled to stay afloat.
The Go format provides Buffalo Wild Wings with a cost-effective and efficient way to expand its reach. Compared to traditional sports bars, Go locations require lower initial investments and occupy less square footage. This makes them easier to build, operate, and potentially more profitable. The strategic placement of Go locations aims to target customers who prefer takeout options over dining in sports bars.
The rise of off-premise orders has been a significant trend for Buffalo Wild Wings, driven by the convenience it offers to customers. Before the pandemic, off-premise sales accounted for 15% of total sales, a figure that has since increased to around one-third. Buffalo Wild Wings has embraced the shift by consolidating its off-premise business under the Go name, catering to evolving customer preferences.
Competitive Landscape
In a rapidly changing market, Buffalo Wild Wings faces competition not only from traditional casual-dining chains but also from fast-casual and fast-food establishments. By tapping into the popularity of chicken wings, the chain aims to stay relevant and attract a wider customer base. Initiatives such as offering special sauces, menu items, and deals demonstrate Buffalo Wild Wings’ commitment to meeting the demands of its customers.
Future Prospects
Looking ahead, Buffalo Wild Wings plans to continue expanding its footprint by opening more Go locations in addition to its existing sports bars. The streamlined nature of Go locations allows for faster growth and easier replication, making them an attractive investment for franchisees. With nearly 600 commitments already in place, Buffalo Wild Wings is poised for further expansion and success in the market.