Buffalo Wild Wings Embraces Takeout Format as One-Third of Sales Shift Off Premises

Buffalo Wild Wings (BWW) has embraced the takeout format with the opening of its 100th Go location in New York City. BWW Go, a quick-service offshoot of the sports bar chain, offers delivery and takeout options for its famous chicken wings and other classic menu items. This move aims to make the brand even more ubiquitous while providing customers with added convenience.

Since becoming a part of Inspire Brands in 2018, Buffalo Wild Wings has seen significant growth. Inspire Brands, backed by private equity firm Roark Capital, has added several other chains to its portfolio, including Sonic Drive-In, Jimmy John’s, Dunkin’, and Baskin-Robbins. Inspire is reportedly considering going public in late 2024 or 2025 with a valuation target of $20 billion.

Buffalo Wild Wings is the second-largest U.S. casual-dining chain in the bar and grill category, with a market share of 14.4%. It has established itself as a dominant player in the chicken wing market, serving over 3 million gallons of ranch and blue cheese dressing in 2023. However, like other casual-dining chains, BWW has faced challenges, with competitors such as Chili’s and Red Robin struggling to turn their businesses around.

In 2023, BWW’s revenue declined by 1% to $2.32 billion. To address this, Inspire has introduced the Go format, which offers a more affordable and streamlined option for franchisees. Opening a traditional Buffalo Wild Wings location requires an initial investment ranging from $2.44 million to $4.83 million, while a Go location costs approximately $560,000 to $1.05 million. The smaller footprint of Go locations allows for cheaper real estate and faster construction.

The Go format primarily targets customers who prefer the convenience of takeout over visiting a sports bar. Before the pandemic, off-premise orders accounted for 15% of Buffalo Wild Wings’ sales. However, since the pandemic, takeout and delivery orders now make up approximately one-third of the chain’s sales. BWW has rebranded its entire off-premise business under the Go name, highlighting its commitment to this growing segment.

The popularity of chicken wings has surged during the pandemic, with their versatility and variety appealing to consumers. While pizza chains like Domino’s and Pizza Hut have experienced sales struggles due to “pizza fatigue,” chicken wings have maintained their popularity. Wingstop, a fast-casual chain specializing in wings, has consistently reported strong same-store sales growth, positioning itself as a potential industry leader.

To compete better with fast-food rivals, BWW Go allows Buffalo Wild Wings to offer a more convenient dinner option. The chain can adapt its limited menu to cater to customers seeking a quick and hassle-free meal. BWW’s Chief Marketing Officer, Tristan Meline, mentioned the possibility of introducing more special sauces, menu items, or deals specifically for Go customers.

BWW plans to continue expanding its footprint of over 1,300 sports bars while simultaneously opening Go locations at a faster rate. The approval and construction process for sports bars can be time-consuming, but the Go format allows for quicker expansion. With nearly 600 commitments from franchisees to open additional Go locations and 85% of operators franchising with other chains owned by Inspire, BWW is poised for exciting growth.

By the end of this year, Buffalo Wild Wings aims to open another 50 Go locations. The combination of its established brand recognition and the convenience offered by the Go format positions BWW to capture more market share and meet the evolving needs of customers in the post-pandemic era.