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Sports, Beer, and Wings: What Buffalo Wild Wings Wants to Offer

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Apr. 20 2016, Updated 10:07 a.m. ET

Positioning

Since its inception, Buffalo Wild Wings (BWLD) has become more and more attractive to college students, sports fans, and young people. The company’s restaurants serve made-to-order, New York-style chicken wings with 16 signature sauces and five seasonings or dips to choose from. Each restaurant boasts a full bar and offers a variety of domestic and imported beers, wine, and liquor. Along with these, multiple TVs and projection screens for viewing sports events, video games have attracted younger crowds—not to mention an energetic atmosphere.

Sports, Beer, and Wings: What Buffalo Wild Wings Wants to Offer

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Revenue sources

In 2015, the menu items consisting of traditional wings and boneless wings constituted 21% of total restaurant sales apiece. During the same period, the takeout category formed approximately 15% of the total company-owned restaurant sales.

BWLD’s restaurants allow their guest to customize their dining experiences to meet their individual demands and service preferences. Guests can opt for a workday lunch, a dine-in dinner, a take-out meal, or a late-night meal, or customers can simply enjoy an afternoon or evening sporting event.

Alcoholic beverages

The open layout of BWLD’s restaurants provides distinctive seating arrangements for sports fans and for families. BWLD earned 20% of its revenue from alcoholic beverages in 2015 and offers a verity of domestic and imported beers on tap, including craft brews and a wide selection of bottled beers, wines, and liquor.

By comparison, in 2015, alcoholic beverage sales made up 11% of the total sales of Texas Roadhouse (TXRH) and Outback Steakhouse of Bloomin Brands (BLMN).

Notably, BLMN, BWLD, TXRH, and Jack in the Box (JACK) make up 0.75% of the total holdings of the iShares Russell 2000 ETF (IWM).

Suppliers

BWLD’s purchasing team negotiates prices with independent suppliers on behalf of both company-owned and franchised restaurants to increase purchasing efficiency. In the US, the company uses McLane Foodservice to distribute food supplies and paper to its restaurants. BWLD’s sauces and toppings are supplied by T. Marzetti Company, but BWLD owns the formula of signature sauces and toppings, which prevents T. Marzetti Company from selling them to other restaurants.

Continue to the next part for a look at BWLD’s emerging brands.

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