Wings & Rings back on track

New ownership reverses shrinking franchise trend
BY JOHN ECKBERG | JECKBERG@ENQUIRER.COM

 

Few restaurant chains have had the ups and downs of Milford-based Buffalo Wings & Rings, founded in 1988 but brought under new ownership led by president Phil Schram last year.

The company had as many as 25 franchises in 1998. That number dipped to six in 2005 when the company changed hands. But with one or two new franchises coming on line each month, Schram projects more than 40 by the end of 2007.

"Our company is all about supporting the franchisees," said Schram, a 42-year-old Mariemont resident, who is also chief executive. "We are a family-dining concept, but the training and operations are directed at helping the franchises."

Schram thinks that it's critical that franchisees receive the attention they deserve to ensure the success of each restaurant in the chain, which has a track record of bringing customers back again and again.

Schram, a former logistics and purchasing manager at the ZF-Ford transmission plant near Batavia, proudly points out that six of 10 customers eat at their favorite Buffalo Wings & Rings at least once a month.

In addition, one in 12, the most loyal, eat at a Buffalo Wings & Rings restaurant every day.

Those numbers come as no surprise to restaurant industry watchers who have seen sales of chicken wings take flight at many quick-serve restaurants in the past several years.

As part of the National Restaurant Association's 2005 Quickservice Restaurant Survey, quick-service operators were asked to judge whether 17 items were gaining or losing popularity.

Chicken wings received more positive responses than any other item. When asked whether they thought chicken wings were gaining in popularity at quick-service restaurants, 52 percent said that they somewhat agreed, and 18 percent said they completely agreed.

"We're seeing chicken wings continue to grow,'' said Harry Balzer, vice president of the NPD Group.

Buffalo Wings & Rings owner-operators pay $25,000 in an upfront franchise fee with another capital commitment needed of up to $450,000 to build one of the 160-seat restaurants.

The company has commitments or actual stores at 35 locations in 10 states and Kuwait. Schram expects system-wide revenues to approach $40 million by the end of 2007.

Most restaurants are in Ohio, though Kentucky will be a focus for growth in 2007, as well as California.

Restaurateur Tim Tefs is committed to building 40 in Kentucky within the decade.

The Yankee Road Wings & Rings restaurant opened in Liberty Township with a V.I.P. party Monday.

Though the restaurants tout chicken wings and spiral french-fried potatoes, typical casual-dining fare such as potato skins, nachos, mushrooms, chicken salads and 11 varieties of hamburger are also sold.

Greek Isle Gyros, branded sandwiches served on pita bread with meat, onions, tomatoes and cucumber sauce, make up about 30 percent of sandwich sales.

Chicken wings gaining in popularity

Chicken wing restaurants are growing in popularity, but consumers are not buying flavor, customer service or nostalgia.

"What's quicker than ordering wings?" asked Joel Libava, president of Cleveland-based Franchise Selections Specialist, a firm that analyzes franchises for would-be investors.

"McDonald's doesn't sell hamburgers. McDonald's sells convenience - it's the same with wings,'' he said.

Rupert Spies, senior lecturer at the School of Hotel Administration at Cornell University, in Ithaca, N.Y., sees a rare retail trend.

"It's unbelievable when you think that an item that used to be thrown away or at best went into chicken soup stock is now worth hundreds of millions of dollars per year,'' Spies said. "Nobody could have predicted this three decades ago.''

Wing consumption also has tribal overtones: Men consumers outnumber women, you get to eat with your fingers like cavemen of old, and wings are usually consumed during a sporting event.

"It's all about being part of the pack," Spies said.

John Eckberg


 

   
   
 
   
   
   
   
   
   
 
     
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