Diversified Restaurant Holdings is focused on taking the extremely successful Buffalo Wild Wings® (BWW) restaurant/bar concept, which bundles together a warm tavern-like/neighborhood atmosphere, a full made-to-order menu that includes delicious New York-style chicken wings in 14 unique flavors, and a sophisticated multimedia environment, to the next level with their now rapidly emerging Bagger Dave’s Legendary Burger Tavern®.
In addition to managing and expanding the Bagger Dave’s concept, the Company acts as a holding group for a robust network of established BWW franchise locations (currently seven in Florida and twelve in Michigan). The Company is on track for completing its projected target of 38 BWW restaurants by 2017 as outlined in the Buffalo Wild Wings, Inc. Area Development Agreement.
Earlier this year, DFRH expanded its Michigan footprint even farther, tacking on another Bagger Dave’s location in Brighton and a BWW in Traverse City, both excellent markets for the concept. In addition DFRH added a BWW to its sizeable network in Florida, this time in the bustling town of Lakeland, which was similarly identified as a prime community, already attuned to the venue’s style.
DFRH is slated to open two more Bagger Dave’s in Michigan and one more BWW in University Park, Florida before year’s end, positioning adroitly for expansion on stable ground with the retention of industry veteran Bill McClintock as the Company’s Senior VP of Franchise Development. McClintock spent over a decade spearheading Sales and Development operations for Buffalo Wild Wings and, more recently McAlister’s Deli, giving DFRH a clear growth advantage.
With the recent announcement of outstanding FY10 financials by DFRH, showing broad uptake even for locations opened late in the fiscal year, it makes sense to take a closer look at the innovative style and concepts behind the Company’s success, but first, take a look at some of the FY10 results:
• Revenue was up 8.4% to $45.2M, the fourth consecutive year in a row DFRH has shown a healthy revenue increase.
• Opened four new restaurants in the year (three BWW, one Bagger Dave’s) and acquired nine affiliated BWW’s and showed a 16.5% increase in cash flow from operations, bringing in $4.6M, despite massive outlays for logistical expenses related to new infrastructure.
Bagger Dave’s has quickly established a reputation for itself; primarily due to the highly engineered concept driving the business model. Before the first location in Berkley, Michigan even opened in January of 2008, the visionaries behind Bagger Dave’s were refining everything that worked with BWW and merged it into a concept that fuses a modern take on the old-fashioned local pub motif with signature burgers and foods.
By creating a user-friendly and immersive multimedia environment that brings together a bar with a tavern-like restaurant, DFRH has hit the market sweet spot, offering customers a very friendly environment where adults and kids can co-exist in a mutually comfortable setting. It is this basic family-oriented but not exclusive platform that makes the menu really pop.
Bagger Dave’s biggest selling point is the phenomenal burgers that have captivated the hearts and minds (not to mention stomachs) of patrons in Michigan and Florida markets. In just a handful of years, Bagger Dave’s has literally built a cult following, using fresh ingredients and even offering a “create your own masterpiece” feature that allows customers to select from over 30 toppings.
Bagger Dave’s has become a sensation almost overnight and while the burgers are really the star attraction, the menu takes the same casual dining logic employed at BWW and fleshes it out completely, offering a full menu that includes various hot sandwiches, fresh salads, Bagger Dave’s special daily in-house cut and freshly made fries, as well as Sloppy Dave’s Fries®, Dave’s Sweet Potato Chips® and the Amazingly Delicious Turkey Black Bean Chili™.
The fundamental strength of the BWW chain, which has been gaining momentum since the first location opened near Ohio State University in 1982, provided DFRH with a solid return base from which to expand the Bagger Dave’s concept. The Company has made remarkable progress in short time despite an economic downturn in the consumer space with this formula and it is clear that the concept is widely embraced in target markets.
Let us hear your thoughts below:
