Diversified Restaurant Holdings Announces Two Additional Bagger Dave's

SOUTHFIELD, Mich., Jan. 4, 2012 // GLOBE NEWSWIRE // -- Diversified Restaurant Holdings, Inc. (OTCBB:DFRH), the owner, operator, and franchisor of Bagger Dave's Legendary Burger Tavern(TM) ("Bagger Dave's"), and a leading franchisee for Buffalo Wild Wings(R) ("BWW"), announces its 7th and 8th Bagger Dave's openings, set to open in the second and third quarter of 2012.

The 7th Bagger Dave's is scheduled to open in Grandville, MI in the Grandville Market Place Shopping Center on Canal Avenue, at the intersection of I-196 and Rivertown Parkway. Said CFO David Burke, "As a suburb of Grand Rapids with a median age in the mid-30's and a housing market that appears to have bottomed more than 1 year ago, Grandville is a very attractive market." The new location is an end-cap among many traffic-driving retailers such as Gander Mountain, World Market, PetSmart, OfficeMax, and Hobby Lobby.

Holland, MI, a Township that has seen its population literally double over the past 20 years, will be the home for DFRH's 8th Bagger Dave's location. Aligned with the Company's real estate strategy, this property is also situated among numerous major retail outlets, such as Target and Meijer, located at the northeast intersection of US-31 and Riley St.

CEO Michael Ansley added, "Grand Rapids is a great market for us. We're excited to open our second and third Bagger Dave's in this area on the heels of our first in Cascade Twp, which opened in November 2011 and has been our most successful Bagger Dave's to date."

About Diversified Restaurant Holdings, Inc.

Diversified Restaurant Holdings, Inc. ("DRH") is the owner, operator, and franchisor of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Legendary Burger Tavern(TM) ("Bagger Dave's") and is a leading Buffalo Wild Wings(R) ("BWW") franchisee. Between the two concepts, the Company currently operates 28 restaurants in Michigan and Florida.

Bagger Dave's offers a full-service, family-friendly restaurant and bar with a casual, comfortable atmosphere. The menu features freshly-made burgers (never frozen), accompanied by more than 30 toppings from which to choose, fresh-cut fries, hand-dipped milkshakes, and a selection of craft beer and wine. Signature items include Sloppy Dave's BBQ(R), Train Wreck Burger(R), and Bagger Dave's Amazingly Delicious Turkey Black Bean Chili(R). The Bagger Dave's concept emphasizes local flair by showcasing historical photos of the city in which each restaurant resides and features an electric train that runs above the dining room and bar areas. Currently, there are six corporate-owned locations in the state of Michigan and an executed area development agreement to franchise six Bagger Dave's in five states outside of Michigan. DRH is approved to franchise Bagger Dave's in the states of Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, and Wisconsin. For more information, visit www.baggerdaves.com.

DRH operates 22 BWW restaurants (14 in Michigan and eight in Florida). The Company continues to build new BWW restaurants in fulfillment of its 32 store Area Development Agreement ("ADA") with franchisor Buffalo Wild Wings, Inc. This agreement, in addition to six BWW restaurants opened prior to the ADA, suggests that the Company will operate 38 BWW restaurants in Michigan and Florida in 2017.

Contact:

David G. Burke
Chief Financial Officer
Phone: 248.223.9160
Email: dgburke@baggerdaves.com

or

Mark Gilbert Magellan FIN, LLC
Institutional Investor Relations
Phone: 317-867-2839
Email: mgilbert@magellanfin.com
Diversified Restaurant Holdings, Inc.

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