Fast food wings are big business in the US
Buffalo Wild Wings, the largest chain specialising in broiler wings with 890 stores reported second quarter revenue of $305 million for fiscal 2013, a 28% increase over revenue generated during the second quarter of 2012.
Earnings attained $16.5 million compared to $11.7 million for the prior-year quarter.
In commenting on results the president and CEO Sally Smith stated “We are very pleased with our strong results for the second quarter. Revenue was driven by a 23% increase in the number of company-owned restaurants and a 3.8% increase in same-store sales”.
Containing expenses was a serious consideration since the demand for wings especially during the televised national sports events, increases demand with a proportional increase in cost of raw material.
There are currently 20 chains in the US specialising in wings with a total of 2,000 restaurants. Second-ranked Wing Stop has grown from 90 to almost 600 restaurants since it was established in 1994. Revenue for this company is approximately half of that of Buffalo Wild Wings.
Operators of conventional franchises with extensive menus, favor the chicken wing model. One owner of a sandwich franchise commented “any time you get high sales out of a small footprint you have a winning formula”.
The price of wings has escalated by 25% since 2010 and prospects for increased volume are limited by the rate of expansion in the US broiler industry.
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