Buffalo Wild Wings Franchisee Signs Agreement To Build 42 New Units In Texas And New Mexico

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MINNEAPOLIS, MN (Friday, April 16, 2004) - Last November, Buffalo Wild Wings was the main course of a financial feast as investors dined heartily on its initial public offering. The company served up 3,000,000 shares of common stock, but underwriters had to quickly purchase additional shares to satisfy demand.

A month earlier, the company's franchise division had dished up an equally heaping helping of its Buffalo-style chicken wings, signature sauces and sports-themed casual-dining atmosphere. Larry Harris, a franchisee with three existing locations, signed an agreement committing to build 42 new restaurants in San Antonio, Austin, Houston, El Paso and other areas of Texas and in Albuquerque, Santa Fe and Las Cruces, New Mexico over the next 10 years.

Harris became a Buffalo Wild Wings franchisee in February 2001 and opened his first restaurant in McAllen, Texas in October of that same year. He earned the title of Buffalo Wild Wings' Developer of the Year for 2001, then went on to complete his initial three-unit commitment a year ahead of schedule, opening three new-construction locations in just two years. He now operates in McAllen, Harlingen, Brownsville and, as of last month, Corpus Christi, the first unit to open under his new agreement.

With a proven development record behind him, Harris was swiftly approved for the 42-unit agreement, which he signed last October. He plans to open four or more units per year, developing simultaneously in both states.

" I'm confident we can keep up the pace over the life of this agreement," says Harris. "We planned for a full year prior to signing the deal. Over that time, we developed our capital resources and build-to-suit partner network, met and established relationships with potential landlords throughout our territory and identified and pre-recruited the professionals we would need to effectively drive our development. In an rapid development program like this, advanced planning is crucial to ensure that all parts come together in a timely, efficient manner."

Multi-unit deals like Harris' have been closing regularly at Buffalo Wild Wings headquarters in recent months. Since July 2003, the chain has signed agreements with 18 investors that will result in 165 new units over the next eight to 10 years. The deals range from two-unit commitments on the low end to Harris' 42-unit deal on the high end.

Such agreements are helping put Buffalo Wild Wings on course to meet its development goals of having 400 open restaurants by the end of next year. The chain has been growing at a rate of about 50 units annually and currently has 252 locations operating in 30 states.

Investing in a Marketable Concept
What makes the concept so appealing, Harris says, is its carefully contrived combination of food and drink, fun-filled atmosphere and fast-casual positioning that equally attracts sports enthusiasts, after-work and late-evening bar crowds and families seeking good food and entertainment at a reasonable price.

" Buffalo Wild Wings really has a flair for operating restaurants," he says. "They've put together a great concept with substantial growth potential I'm very pleased with and the return I'm already seeing on my investment."

Everyone finds something to enjoy at Buffalo Wild Wings restaurants. The menu features an appetizing array of award-winning wings and signature sauces, Mexican food, children's selections, "finger foods" and popular mainstream menu items like chicken dishes, hot and cold sandwiches, burgers and salads. The bars are fully stocked bar with wine, cocktails, specialty drinks, domestic and imported beer on tap and in bottles as well as non-alcoholic beverages. And the décor incorporates National Trivia Network (NTN) consoles interspersed with large-screen TVs broadcasting popular sports events.

" I really love the product and the ambiance of the restaurants. More importantly, in each market where we open, customers respond favorably, either because no one is doing what we do or, in other cases, because no one is doing it as well," Harris says.

Growing Up in the Business
Of course, like a highly sophisticated automobile or a precision-made string instrument, outstanding performance is only due in part to the equipment. Equally important is the ability of the one who takes the wheel, the bow, or in this case, the wing.
" Larry represents the ideal multi-unit candidate for us," says Bill McClintock, Buffalo Wild Wings' Vice President of Franchising. "He brings so much to the table – extensive background and success in the restaurant industry, an appetite for significant growth, and an appreciation for both the benefits and the responsibilities of franchising."

Harris has had a long time to hone his restaurant skills. He is just completing his third decade in the industry, having started while in school working afternoons and weekends as a line cook at a Kip's Big Boy restaurant in Grand Prairie, Texas. By the time he came to Buffalo Wild Wings, he had held positions of increasing responsibility with various food-related businesses, including a corporate stint with Pizza Hut and a distinguished career as a Little Caesar franchisee (he earned the chain's National Operations Excellence Award in 2001 and currently operates 25 locations in the Rio Grande Valle and Corpus Christi areas of South Texas).

At each stage of his career, Harris has gained insight into the challenges of foodservice, from the rigors of managing a staff to the many facets of getting a new location up and running to the time necessary to achieve success. He has also learned the importance of gathering a seasoned team around you – between the top three people in his organization, there are 67 combined years of restaurant experience opening and operating some 300 restaurants – and keeping them there.

" All of our key management are owner/partners in the business, not just employees," he explains. "Besides myself, the chief operations officer and the chief financial officer of the company are on the franchise documents as owners. This levels the playing field and provides the ultimate long-term incentive that a nice compensation package alone cannot accomplish."
Harris looks forward with optimism as his growth plans with Buffalo Wild Wings take flight.

" After our first opening, we quickly realized that the Buffalo Wild Wings concept had tremendous cross-demographic appeal and major legs for a national push, and we didn't want to get left behind. I was left standing when the Applebee's train left the station in the early 80s, and wasn't going to miss the next big opportunity in the industry."

About Buffalo Wild Wings
Offering an award-winning selection of NY-style chicken wings and signature sauces, Minneapolis-based Buffalo Wild Wings Grill & Bar (NASDAQ: BWLD) combines fast-casual dining and sports bar entertainment in an environment that appeals to a broad demographic. Each location features a full menu of salads, appetizers, burgers and a variety of specialty items, all served in a relaxed, comfortable atmosphere where customers hang out with friends, play National Trivia Network (NTN) trivia games and watch their favorite sporting events on big-screen TVs. Franchise opportunities are available to qualifying investors with a minimum of $800,000 total net worth per unit ($250,000 to $400,000 liquid). Area development opportunities (minimum of two stores) also are available.