Diversified Restaurant Holdings, Inc.
(
DFRH
) - a leading franchisee of
Buffalo Wild Wings, Inc.
(
BWLD
) - recently entered into a long-term lease agreement to open a new
Buffalo Wild Wings restaurant in Sault Saint Marie, Michigan. The
terms of the deal were not disclosed. The new restaurant is slated
for a mid-2013 opening.
Sault Saint Marie lies on the north-eastern end of Michigan's Upper
Peninsula and is relatively isolated from other communities in
Michigan. It is the second most populated city in the Upper
Peninsula. The city's major attractions are the ships that pass
through the American Soo Locks, one of the world's busiest
waterways and the annual International 500 Snowmobile Race.
The new unit marks the 35th Buffalo Wild Wings restaurant opening
by Diversified Restaurant and will be located at the Cascade
Crossing Shopping Center. The location is a strategic fit as it's a
high traffic area and with the Shopping Center recently renovated,
it is expected to drive additional traffic.
Minnesota-based, Buffalo Wild Wings owns, operates and franchises
Buffalo Wild Wings Grill & Bar restaurants. The company
currently operates more than 830 Buffalo Wild Wings restaurants in
48 states across the United States and Canada.
Apart from the Buffalo Wild Wings restaurants, Diversified
Restaurant owns, operates, and franchises Bagger Dave's Legendary
Burger Tavern full-service, ultra-casual restaurant concept.
The company currently operates 7 Bagger Dave's restaurants in
Michigan and 22 Buffalo Wild Wings restaurants, including 14 in
Michigan and 8 in Florida.
Diversified Restaurant has also inked a deal to acquire eight
Buffalo Wild Wings restaurants for $14.7 million. The Buffalo Wild
Wings restaurants to be purchased are in Indiana and Illinois. The
acquisition is expected to complete by the end of October 2012.
With the completion of the acquisition, Diversified Restaurant will
operate around 46 Buffalo Wild Wings restaurants by the end of
2017.
The company is also expanding its Bagger Dave's restaurants and
expects to open around four restaurants in 2012. Diversified
Restaurant is set to franchise six Bagger Dave's restaurants in the
states of Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio,
and Wisconsin in the future.
With these expansion plans, the total number of Buffalo Wild Wings
and Bagger Dave's restaurants is projected to increase from 30 to
45 by the end of 2012.
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