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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