Buffalo Wild Wings is wildly popular owing to its delicious taste and unique concept.
If you are an entrepreneur who is thinking about investing in this franchise and wondering how much a Buffalo Wild Wings franchise owner makes, then we got you!
Keep on reading to find out about the sales and profits, failure rate, and payback period of the Buffalo Wild Wings Franchise.
About Buffalo Wild Wings
Buffalo Wild Wings is a popular American casual dine-in restaurant with more than 1200 locations. It was founded by Jim Disbrow and Scott Lowery in the year 1982 in Columbus, OH., as Buffalo Wild Wings & Weck.
The duo had recently moved to Ohio from New York and were craving authentic wings, but they only had two options either to travel miles back to New York or open a wing joint. You know which option they chose, and that is how Buffalo Wild Wings was established.
Today, Buffalo Wild Wings has a network of more than 1000 franchise units, and if you wish to own one yourself, too, then keep on reading.
Buffalo Wild Wings Franchise Investment Requirements
| Franchise fee | $25,000 |
| Royalty fee | 5.0% |
| Marketing fee | 3% |
| Investment (mid-point) | $3,547,000 |
| Payback period | 5.5 years |
| Average sales | $2,534,000 |
| Minimum net worth | $1,500,000 |
| Minimum liquid capital | $750,000 |
How Much Does A Buffalo Wild Wings Franchise Owner Make?
The earnings of a Buffalo Wild Wings Franchise owner may vary based on the type of franchise model they choose, their location, operating costs, etc.
However, according to the performance of 526 franchised Sports Bars locations operating in 2020, Buffalo Wild Wings franchise owners make sales of $2,534,148 per year on average.
| Type of bar | Number of stores | Median sales |
|---|---|---|
| Inline | 27 | $2,416,570 |
| End-Cap | 225 | $2,405,180 |
| Free Standing | 274 | $2,651,638 |
| Total | 526 | $2,534,148 |
How Much Does Buffalo Wild Wings Employee Earn?
The pay of a Buffalo Wild Wings employee may vary depending on their experience level, department, position, location, etc.
However, according to Indeed, the average hourly pay of a Buffalo Wild Wings employee ranges from $10.10 per hour for the position of Captain to $27.78 per hour for the position of Store Manager.
And in yearly terms, the average pay of a Buffalo Wild Wings salary ranges from $18,439 per year for the position of Certified Trainer to $104,008 per year for the position of Director.
Pros & Cons Of Buffalo Wild Wings Franchise
Pros Of Buffalo Wild Wings Franchise
- International presence.
- Offers third-party financing.
- Offers training and ongoing support.
- Profitable.
Cons Of Buffalo Wild Wings Franchise
- Requirement to hire 40-60 employees.
- No territory protection.
Buffalo Wild Wings Franchise Average Revenue & Profit
As already mentioned before, Buffalo Wild Wings franchise owners make sales of $2,534,148 per year on average, and with a profit margin of 27% EBITDA, they make profits of $671,641 per year on average.
Buffalo Wild Wings has not disclosed any information related to its finances. As such, we had to calculate the profit percentage using the industry average of similar franchises.
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Sales | $2,534,148 | 100% |
| COGS | $(633,537) | 25.0% (assumed) |
| Rent | $(285,000) | 11.2% |
| Labor | $(734,903) | 29.0% (assumed) |
| Royalty + marketing fees | $(209,067) | 8.3% |
| Adjusted EBITDA | $671,641 | ~27% |
Buffalo Wild Wings Franchise Failure Rate
To determine the Buffalo Wild Wings franchise failure rate, let us look at the following data:
| Year | Start of Year | Units Opened | Units Closed | End of Year |
|---|---|---|---|---|
| 2016 | 559 | 28 | 6 | 580 |
| 2017 | 580 | 13 | 8 | 585 |
| 2018 | 585 | 12 | 8 | 587 |
| 2019 | 586 | 4 | 8 | 573 |
| 2020 | 573 | 4 | 8 | 530 |
| 2021 | 530 | 15 | 9 | 534 |
| 2022 | 534 | 5 | 7 | 530 |
The franchise failures may be because of various reasons such as termination, non-renewal, or ceasing operations.
As we can see in the table above, the franchise failure rate of Buffalo Wild Wing is 5%.
Buffalo Wild Wings Franchise Payback Period
To find out the payback period of Buffalo Wild Wings Franchise, let us do some calculations:
| AVERAGE INVESTMENT | $3,546,900 |
| AVERAGE REVENUE PER OWNER | $2,534,148 |
| AVERGAGE PROFIT PERCENTAGE | 27% |
| AVERGAGE PROFIT PER YEAR | $671,641 |
| AVERAGE PAYBACK PERIOD | 5.5 |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 3546900/671641 = 5.2 = 5.5 Years based on median.
The average investment for a Buffalo Wild Wings Franchise is $3,546,900.
With an average profit percentage of 27%, the average profit per year is $671,641.
This means that the average payback period for a Buffalo Wild Wings Franchise is 5.5 years, and the total investment of $3,546,900 would be recoveredwithin this period.
What Is Buffalo Wild Wings Best Known For?
Buffalo Wild Wing is a casual dine-in restaurant and a sports bar that is known for its incredible wings and sauces. Its menu also includes other popular items, such as chicken tenders and legs, etc.
And they are not only known for their signature wings but also for offering entertainment. For this, they have flat-screen TVs at their restaurant where the customers can view sports and other stuff while enjoying lip-smacking food.
If you have never been to Buffalo Wild Wings, then here’s a list of items that you must try:
- Classic Chicken Wrap.
- Honey BBQ Boneless Wings.
- Parmesan Garlic Wings.
- Buffalo Sauce Cauliflower Wings.
- Cheddar Cheese Curds Side.
- Grilled Chicken Buffalitos.
- Parmesan Garlic Boneless Wings.
- Buffalo Ranch Chicken Wrap.
Is Buffalo Wild Wings Profitable?
Yes, Buffalo Wild Wings is a Profitable franchise to own.
The profitability of any business is influenced by the initial investment amount. So Buffalo Wild Wings require a high initial investment amount of $3,546,900 on average.
But the good news is that franchise owners earn a profit of $671,641 a year on average, and within 5.5 years on average, you can recover your initial investment amount and then enjoy a major portion of profits.
Buffalo Wild Wings Franchise Earning Potential
The earning potential of Buffalo Wild Wings is good, and the highest-performing franchise outlets have made AUV of as much as $8,492,338.
However, the money that you can make as a Buffalo Wild Wings franchise owner would vary depending on your franchise model, location, etc.
Wrap Up
So after looking at the franchise details of Buffalo Wild Wings, we can say that the investment required to open this franchise is a bit costly, but then the profit that you will generate is also good.
Buffalo Wild Wings is popular and always in demand. If you are looking to invest in a casual dine-in or sports bar franchise, then you can invest in Buffalo Wild Wings.
Frequently Asked Questions
How much royalty and advertisment fees does Buffalo Wild Wings charge?
Buffalo Wild Wings charge royalty and advertisement fees of 5% and 3%, respectively.
What is the intial franchise fees of Buffalo Wild Wings franchise?
The intial franchise fees of Buffalo Wild Wings franchise is $25,000.
What is financial qualification to own a Buffalo Wild Wings franchise?
To own a Buffalo Wild Wings franchise, the candidate must have the following:
- A minimum net worth of $1,500,000.
- And minimum liquid capital of $750,000.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.