RadioOnFire.com - Fast food giant Arby’s Food Group has announced plans to purchase buffalo wild wings for $2.4 billion in cash. Minneapolis-based Buffalo Wild Wings has over 1200 locations in different countries.
The Buffalo Wild Wings mantra is “beer, sports, wings” And they have successfully used this American ideal to become one of the most popular casual dining places. Despite their overall success, Buffalo Wild Wings has experienced declines in recent years. According to NPD Group restaurant industry analyst Bonnie Riggs, they were stars in the casual dining sector until they “lost their value proposition to families with kids” after sharp increases in prices by almost 20%.
Arby’s CEO Paul Brown had this to say about the acquisition:
"Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America...We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company.”
Brown is hinting at Arby’s ability to keep manufacturing costs low which ultimately produces cheaper prices for the customer. If he can combine that with Buffalo wild wings’ already dominant hold on the casual dining sector, he would be in a position of power in the food industry.
Source: t.co
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