Buffalo Wild Wings to Buy Out 15 of its Franchisees
Buffalo Wild Wings, Inc., announced Wednesday that it will acquire 15 of its own franchised restaurants located in Ohio and South Carolina.
The Golden Valley-based company did not disclose financial terms of the acquisition but said that it will pay for the restaurants with cash.
The restaurants-located near Dayton, Ohio and Columbia, South Carolina-already operate under the Buffalo Wild Wings name and are currently owned and operated by a franchisee group. The company expects to complete the acquisition before the end of the year, after which it will assume each restaurant's ownership and operations.
“The strong performance of this group of restaurants presented a very attractive acquisition opportunity for us and we look forward to welcoming them into our company-owned operations,” Buffalo Wild Wings CEO Sally Smith said in a statement.
Buffalo Wild Wings' announcement comes about a month after a West Palm Beach, Florida-based wing chain, Hurricane Grill & Wings, said that it plans to enter Minnesota by opening 17 franchises within the state over the next eight years “after seeing unprecedented growth” this year.
With more than 800 locations, Golden Valley-based Buffalo Wild Wings is larger than Hurricane-and it too has experienced significant growth in recent years. Its annual growth rate has hovered around 25 percent, and it made Fortune's 2011 list of the 100 fastest-growing companies.
Meanwhile, another local restaurant chain, St. Louis Park-based Granite City Food & Brewery, has been ramping up efforts to grow and boost sales. Earlier this month, the company announced that it is buying seven Cadillac Ranch All American Bar & Grill restaurants, and last month, it announced plans to remodel eight of its restaurants to increase seating capacity and thus reduce wait times.
Buffalo Wild Wings reported $613.3 million in 2010 revenue, making it one of Minnesota's 40 largest public companies.