Buffalo Wings & Rings Is Taking Flight
Emerging restaurant chain Buffalo Wings & Rings rebrands and rebuilds its reputation among franchisees.
By David Farkas, Senior Editor -- Chain Leader, 9/1/2009 12:00:00 AM
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Parisian Philip Schram concedes his French friends don't quite understand using one's fingers when dining. “Most of them prefer eating with a knife and fork,” declares the president and CEO of Cincinnati-based restaurant chain Buffalo Wings & Rings.
What does impress his friends, he adds, is the wing chain's rapid expansion. Schram expects to have 59 full-service eateries open by the end of 2009.
That's roughly 10 times the number of units he had when he and partners Nader Masadeh and Haytham David, chief financial officer and vice president of sales and marketing, respectively, acquired the then-beleaguered business in 2005.
Systemwide sales will climb 36 percent, to $50 million, in 2009, Schram predicts. Comparable sales for the 28 units open 15 months or more are flat year to date.
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| A rebranding effort launched rapid growth at Buffalo Wings & Rings. |
Chicken and More
The versatility and healthy reputation of chicken appears to have spurred growth across the category. Since 2000 the number of chicken restaurants has climbed 18.6 percent, says a recent report from GE Franchise Finance.
At Buffalo Wings & Rings, chicken finds its way into sandwiches, wraps, salads and gyros. Checks average $8 at lunch and $12 at dinner, reasonable for a full-service atmosphere.
Growth hasn't been without problems for franchisees, who are spread across 14 states (the company operates one restaurant, near headquarters). “The cost of chicken wings is close to an all-time high,” hurting franchisees' profits, Schram says, adding wing prices are prone to fluctuating.
To combat those ups and downs, the partners early on adjusted the menu, adding gyros and pulled pork sandwiches, for example. “Rings,” by the way, refer to curly fries.
Since acquiring the chain, the partners have also impressed potential franchisees with a rebranding effort that added a new color palate and galvanized-sheet-metal finishes.
The effort also includes a slick Web site dubbed PalJunction.com. An early social media site Schram purchased in 2004, it's now used to communicate between franchisor and franchisees. The site includes document management, e-learning, project management, and a tool that franchisees use to calculate royalty payments and write checks.
“So you have the entire company universe on PalJunction, and it has been a huge productivity tool, putting everyone on the same rhythm,” Schram says. He adds that unlike similar franchise databases, which charge per restaurant, PalJunction is included in the royalty fee.
Systematic Approach
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Productivity is Schram and Masadeh's bailiwick. Former auto executives for a Cincinnati-based joint-venture between Ford and a German parts manufacturer, they worked together to streamline the new company's supply chain.
Striking out on their own in 2004, they intended to buy a manufacturing firm. But they changed their minds after discovering Buffalo Wings & Rings, which had shrunk from 25 units to seven licensed units after the founders' divorce.
“My partner said, 'Look, this business deals with lots of systems—organization, training, support, purchasing, customers,” Schram recalls. “We are going to love it.'” Knives and forks be damned.
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They do have the best wings I've found since we moved here. I like the Saratoga chips too.
Laura J Whiting - 2009-10-9 19:28:00 MDT
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