The Mag
Today we have with us, Thomas Flaherty, with Buffalo Wings & Rings. Welcome, Thomas.
Thomas Flaherty
Thank you very much, happy to be here.
The Mag
Well, I'm excited to learn what you're up to tell us a little bit about Buffalo Wings and Rings how are you serving folks?
Thomas Flaherty
Sure, well, that's a loaded question. These days, obviously, in a pandemic environment, how we're serving people, but I'll tell you a little bit about us when we can get into some details. Obviously, we're based in Cincinnati, Ohio, we started in 1984. So, we've been around for quite a while, but continuously improving and evolving the brand, which we can talk about a little bit more. The things that we're doing to evolve, we really try to separate ourselves from the competition. I mean, obviously, there are a lot of kinds of sports bars or sports restaurants out there in the world.
And we really try to separate ourselves by making it really more of a sports restaurant and bar with a club-level experience. So, the club level implies, you know, it's a bit of a higher expectation in terms of service, higher expectations, interpret of food quality. So that's the one really big thing about us, it's really a chef-inspired menu. Obviously, we have great wings, but a full complement of items on our menu. You know, we're open to all and really, as I mentioned, focus on VIP service. So that's really the differentiators with us. And we've got 85 Global locations, based in Cincinnati, but we've got locations not only across the US, mostly in the Midwest, South Texas, Florida, a couple of locations in California. And then we have locations in Europe in the Middle East as well. And we're getting ready to launch Mexico this year. So, a lot going on.
The Mag
So now what was the genesis of the idea? How did the restaurant come into being was it kind of started as a mom-and-pop and then organically grew? Or was it built to be a franchise all along?
Thomas Flaherty
Now, to your point, it was definitely a mom and pop it was built on the premise of you know, having a local kind of sports bar restaurant environment. It was started in 1984, as I mentioned, and then it was acquired by the new ownership in 2005. And at that point, they really saw that this is a big burgeoning brand and restaurant, and it looks like something that could be franchisable. And they have definitely focused on growing that. But it started out as an individually owned location in Cincinnati, Ohio.
The Mag
So now what were the characteristics of it, where you guys said, hey, you know what, this is something that's scalable, that we'll be able to replicate in other markets?
Thomas Flaherty
Yeah, it's a great question. You know, I think everybody can solidly say the US and really the world has a passion for sports and a passion for connecting around good food and sports. So, for us, it was really, in addition to the sports just again, focusing on great quality food. And then really, when the new ownership took it over, they went from kind of that mom-and-pop feel and personality and management that you were talking about early earlier and then said how do we scale this? How do we really make it a franchisable model? So, starting to focus on things like a scalable, down to the point of sale system, the brand itself, the menu, how to consistently deliver great food and good quality.
And just I think, you know, the overarching premise for us, it's not only sports, restaurant and bar and notice that's a sports restaurant, we focus on being a restaurant first, not just a sports bar, we do have a bar element, of course, but focusing on how we can make that consistent, higher-end and replicable.
The Mag
So now, what are some ways that you do kind of push that value curve and that kind of premium service club level? I mean, you're using very specific words to kind of take an experience that seems above that what a lot of people may behave in their mind or expect in this type of restaurant.
Thomas Flaherty
Right? Yeah, I think you see it and you feel it, right. So, when you go into one of our locations, it's not just your typical, again, kind of bar where you have a bunch of TVs in there, you know, and kind of peanuts on the floor, kind of an environment. And we've just created a new prototype design. So even further enhancing, not only the look and feel but the technology, etc. But the real focus is that quality service, the VIP service, as I said, and then the quality menu, so even down to the quality of the ingredients that we use, you know, fresh, never frozen products, that flavor profile, consistently sensing with our customers, you know what flavor profiles they like, even for evolution, right, like ghost pepper, and things like that are more of a new thing versus just a standard buffalo sauce if you will. I know the really big elements, the prototype design, menu service.
The Mag
So now when it comes to service, have you kind of cracked the code in terms of training in order to allow your franchisees to replicate and to achieve that level of service?
Thomas Flaherty
I believe so. You know, it's everything is a loaded question in these times, I believe we have great systems in place, let me start with that we have great training and franchise support and a replicable model. As mentioned, kind of being in the pandemic or COVID-19 environment. You're always we're always in a spirit of continuous improvement. So good is never good enough if you will. But then in these times over the last year, or so, we've really had to say what does that mean? Now, what is VIP service mean? Now, there's a lot more focus on off-premise, for example, our new prototype design has literally a valet pickup lane, so you don't even have to get out of your car.
So, VIP service there or a curbside valet will come out to your car and help you there. They're focusing on how to package that well how to interact with the guests when they're not coming into the environment in the restaurant, where you have those TVs, and again, kind of that upscaling by around the inside has been a bit of a shift. But, you know, again, I think that we have a great service model, we have great training, but it good is never good enough. And we're continuously just looking for ways to improve that, whether it's via a smiling face or new technology applications.
The Mag
So now going through COVID did that. So, you had obviously made some changes, did it? Do you think any of those changes are kind of silver linings in the sense that, hey, this is something now we can incorporate or maybe we can do things that we were forced to do, it might have legs, that we'll be able to kind of lean into that moving forward and to create more opportunities down the road?
Thomas Flaherty
Absolutely. I mean, I believe that consumer habits will evolve, right, they went to mostly, or a large focus anyway on carryout delivery, not only with us but for all restaurants as you're well aware. But there are things that we learned through that process of are doing the best job and how do we do the best job in terms of our accuracy, customer engagement, customer satisfaction with the overall experience down to the packaging, we have new packaging, you know, that really has been enhanced because of this environment that we're in. So, there are a lot of things that we did to adapt to this environment that I think definitely will hold for the long term, again, that focus on a valet pickup line.
That's not something that we historically were looking at, it was already, by the way, part of the prototype design. So, we were looking at a new POS system, new technology, new elements, but I think it was very serendipitous for us that we had, you know those elements in place in time for the pandemic, but then you realize, as everyone does, you know, the Mike Tyson thing, everybody has a plan to get punched in the mouth. So we have a plan and how to plan and I think we executed very well. And frankly, we fared very well. During the pandemic, we pretty quickly jumped on a COVID-19 response team. And we created a strategic plan specifically for COVID-19 that had three big elements, survival, rebound, and slingshot survival was you know, as it said, how do we survive, that's what's going to happen.
So just addressing the world rebound was, you know, when we start to come out of this, how do we evolve? And what were the new normal be? And then slingshot is a very nerdy, nerdy scientific reference that I use. You know, in the science community, you have a satellite or a spaceship, you know, orbit around a planet like the earth and then use that momentum to slingshot you into space faster toward your target than you would have otherwise been going.
So, we kind of use this time during the last year to say let's reassess all of our systems policies, procedures, even down to the franchise, qualification. process and things like that, really focus on how we slingshot and grow into the future. So, there will definitely be elements out of this last year that survives. While I believe some of that, you know, dayparts will change, we've had stores that had limited hours because of COVID. And they will open back up to longer hours and head distancing. So less in-store and more off-premise focus. But you know, the technology new point of sale system that we have those things will definitely carry on, but I think to be executed in a different way than we originally planned.
The Mag
But having that kind of as part of your culture and your DNA, this continuous improvement, this always kind of forward-looking at, that probably helped you thrive in a way that some other folks maybe struggled?
Thomas Flaherty
Indeed, you know, it's always being prepared for change, right? It's the only constant that's changed. And I think that I give a lot of credit. I've been with the organization for a little over a year. Now. So, we have my role of Chief development officer with real estate construction and franchising. We also have Chief Operations Officer, Officer that's been there for about a year. So, we both came in kind of right before everything changed.
So, it's been great for us to meld with the organization and learn about the organization while also bringing new ideas on how we can adhere to that spirit of continuous improvement but use our experience to kind of push us forward ragged, give a lot of credit to our CEO, Mater. Masada is really a forward-thinking person who wants to do great things and make positive impacts on people's lives. And that's a great kind of foundational value.
The Mag
Now has, has this trickle down into your franchisees do? Are those the kind of people you attract as well? Are these kinds of relentlessly optimistic forward-thinking, make it happen kind of people so that you're able to kind of tap into their brainpower and bubble up some ideas that from them as well?
Thomas Flaherty
Absolutely, I mean, I think any franchise owner would be kind of silly. If they didn't listen to the franchisees constantly, we have gotten a lot of great. And we have franchisees that are one-unit operators. And we have franchisees that are multi 100 operators, some of them this is their only business, some of them have multiple franchise or other brains. So, we have as a matter of normal course, and then we'd certainly utilize those to full potential, but we have as part of normal course, our franchise support and kind of normal interaction, business planning, and business reviews. But we also have a franchise Advisory Council.
So, we've definitely been having in-depth conference conversations with the Franchise Advisory Council, we have quarterly franchise webcasts, which gives us an opportunity to kind of come up to 50,000 and talk about the business and things that need to evolve. We have literally weekly calls with all of our franchisees we have a weekly call every week. So that was a great opportunity for us to jump in, you know, normally you're focusing on more tactical operations and marketing initiatives during that weekly call. And then when COVID hit, we really transferred that to a kind of COVID Task Force call an opportunity for us to on a weekly basis talk with our franchisees get real-time input in the weekly calls and then again, regurgitate out from a more strategic level there in the quarterly webcast and then in-depth conversations with our FEC as well Franchise Advisory Council.
The Mag
So now, you mentioned this new design, and we've talked a little bit about some innovation. So, can you share a little bit about some of these innovative ideas that are kind of coming up or on the roadmap?
Thomas Flaherty
Yeah, absolutely. And, you know, the radio audience won't be able to get the picture in mind instantly, but I'll share some pictures with you. And then at the end, we can talk about our website address and where they can see and learn more. But it really starts on the outside I mean in and of itself. It's a brand-new prototype design. So, I think that the new modern fresh prototype design really makes a big impact from the outside including, by the way, even a new logo evolve logo. Many brands as you know evolve their logo over time. So, this is part of the enhancement there.
So, from the exterior a lot of good visual elements, but also practical elements like that pull up, you know, pick up valet that I've talked about, or the curbside valet, we've got an expandable hangout area on the outside think of like a, a patio or a side area on the prototype model even has like artificial grass and cornhole boards and things like that for the outside. And then as you move inside, kind of reconfigure and re-imagine how the restaurant could operate and evolve with the time. So, we have a new U-shaped bar we used to have the bar was kind of on one side of the building, and it was facing that one side of the building. Now we have a U-shaped bar if you can imagine in your mind, you know, where you have people sitting on both sides of a bar with the bartenders and drinks on the inside of that.
So, people can even look at each other. So, it's just, you know, really conducive for, you know, congregations or people to come together and really see each other and have fun and of course, see the game or, or experience different things in that part of the area. And then we've separated kind of a central area that's hybrid between the bar area and the restaurant, itself. So, it's a bit of a hybrid in that area. And then there's more of a traditional kind of restaurant area on the other side of that. So even from the very beginning, where you walk in, there's a brand wall, we call it on the back of that sort of image you're walking into a restaurant, and that whole back wall is a very large, you know, 15-foot tall, new logo on the back of that.
To the best of your when you walk in the restaurant, there's not only places for you to put, you know, national sports team paraphernalia, or things like that. But there are things specifically about local, whether it's local high school teams, or local universities, things like that. And you can display those items in that vestibule area. And then in the kitchen, really thinking about efficient use of space. I mean, we hired some even external folks to help us look at the best and most efficient way to have the equipment layout in the kitchen, as well as the people walking around, and how to most effectively utilize their steps and the size of the walk-in coolers and things like that. So really a lot of thought on going into every element of exterior and interior options.
The Mag
Wow, that's pretty ambitious.
Thomas Flaherty
Yeah. And it's exciting to me to see it come to life, we open that new store in October, and it's just done incredibly well. Again, opening in the pandemic wasn't a part of the original plan. And it's just done incredibly well. Again, it was serendipitous, that we had a lot of those elements that really fared well during this time with new technology, new pickup options, curbside options, delivery, things like that.
The Mag
Now, you mentioned a little bit about how you're not just in the US it's kind of a global brand. Now, can you talk about your expansion plans internationally?
.
Thomas Flaherty
Sure. You know, we started growing internationally A number of years ago. So, I mean, the owners, one of the two of the owners, excuse me are from Jordan, and one of the older owners is from France, originally, and so it's not surprising that they would start considering international development. And they did that pretty soon. You know, again, the brand started in 1984. But the new ownership started in 2015. Don't shoot me 2005. So, they really early on said we're going to start focusing on buildings and stores and Europe in the Middle East.
And then like I said, we're getting ready to open Mexico, as well. And that will be our first foray into Mexico this year. So that's pretty exciting. But we've got locations, you know, in Dubai, Jordan, Egypt, a number of Middle Eastern markets, Cyprus, Greece, and then Mexico coming later this year, which is pretty exciting. And they continue to grow internationally, you know, the Middle East, it's interesting, just opened a store in Iraq, which is not naturally intuitive, but obviously a lot of growth and infrastructure building there as well. So, I think we'll continue we have a base of operations kind of out of the Middle East for regional support and then a base of operations in Cincinnati to kind of support both of those.
The Mag
Now, you mentioned the franchisee or some of them are kind of single owners and some of them are kind of empire builders. What do you look for in that ideal franchisee right now?
Thomas Flaherty
You know, it's really both, I mean, our brand bodes well. Whether you want to be an owner, operator in any town, USA, right, wherever you're from and where you're operating, you may already have, you know, Papa John's, or Wendy's or other brands in your market and you want to add on to your portfolio. So, we'll assess how many units that each local market will support and then talk to folks whether they're interested in doing one or multiple. Most of our franchisees are in that kind of one to three store category and then some are larger.
So, I would say the answer is both. We're looking for some markets. They will only support one store like Campbellsville, Kentucky, for example, that happens to be a multi-unit operator who's doing multiple areas in Kentucky, but at that size of a city, you would look at it, maybe it could be an individual operator. And then I mentioned our new expansion into Mexico that franchisee has KFC and Carl's Jr, Pizza Hut IOP. So, a number of kind of WorldCat class brands already. And we can make that investment, you know, work and work with both of those. Whether it's an individual investment in, you know, an economic perspective or a multi-brand area manager have a model.
The Mag
Now, what are the characteristics of a good market for you?
Thomas Flaherty
So, you know, again, the good thing about our brand overall is, everybody, wherever you are, has, I think a fervor and excitement around sports. So, we typically look at the kind of 40,000 population within the kind of an eight to 10-minute drive area, is how we look at it, if you go smaller than that, it's tough to make it work. We do have, however, a number of freestanding locations. And then we also have an endcap model of focus, meaning if you don't want to buy the land, and do the site work, and build the building and everything, which is obviously a higher investment, you can do that.
So, we can scale it, but typically about 40,000 people in about that eight or 10-minute drive area. And then, of course, we look at the traffic generators and different elements, visibility, access, Ingress egress of the locations, different household incomes, I mean, this is a kind of a medium mid-scale restaurant. So, you know, that super high-end is not what we're looking for. So, a lot of the US, as you know, is very, fits very well for that model of more of a mid-scale investment in restaurant operation.
The Mag
So now if somebody wants to learn more, have a more substantive conversation with you or somebody on your team is our website.
Thomas Flaherty
Yeah, absolutely. And we'd be excited to talk with them. You can go to own a buffalo "O w n" ownabuffalo.com is our franchising website. And then our main website is buffalowingsandrings.com.
The Mag
And that's spelled out right, everything spelled out, correct. That's correct. And then they can get to the franchise stuff from that as well. Right?
Thomas Flaherty
Absolutely. Yeah, they own a buffalo is specifically designated for franchising and our franchise qualification process, site criteria, and things like that, I included and of course contact information. And we'll be happy to get back to anyone interested and have a great conversation.
The Mag
Good stuff. Well, Thomas, thank you so much for sharing your story, and congratulations on all the momentum and success.
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