Recently the 'food, beer sports' giant chain has come under fire for declining performance and value. As is typical for a company that is facing declining sales, their now former CEO looked for a scapegoat. And, like many people my age (or older) he came up with an easy target: millenials.
"Millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants and eating quickly, in fast-casual or quick-serve restaurants," Smith wrote. "Mall traffic has slowed. And, surprisingly, television viewership of sporting events (important for us, especially) is down."
The problem? She's wrong.
Like many companies struggling to adapt to a changing marketplace, with new dynamics and changing tastes, Buffalo Wild Wings is stuck to a model that used to work but no longer does. The millenial sports fan exists - and wants to watch television. They like to go out to different places to watch sports and they like to eat out. Fast casual? Sure. But what does Buffalo Wild Wings think they are? Surely they recognize that they are just as 'fast casual' as any other restaurant in that category.
But here is what I see from the outside. Millenials do not like bland chain style places. They want their restaurants and bars to feel fresh, unique and local. They want craft cocktails and artisan foods. they want some choices but not too may choices. in other words, they don't want just wings, or wings and burgers, but they also don't want every possible food under the sun on a menu.
When a store is 'corporate owned' it tends to be very bland in its consumer experience. When a franchisor creates too many limitations on its franchisee, it creates the same dilemma; a bland experience which is unable to adapt to local needs.
The Mercato group, which won its fight to oust Sally Smith, is right that they need to divest the corporation of its stores by getting more franchise agreements in place. But if they think that alone will solve their problems, I think they are wrong. They also need to loosen the reigns some on franchises to adapt to each locale. And no, that does not mean having more 'local' signed paraphernalia.
What BWW needs to do now is invest in a new model; one that allows its franchise to be more adaptable to local needs. Allow Portland locations to have some 'farm-to-table' options. Invest in creating 'craft cocktails' at locations; cocktails that define BWW as a unique place; a 'must go' location for watching sports. Another change? Not every location is as excited about some events as others, create some flexibility within each store as to what is watched on the 'main' television. If Portland is more excited about Major League Soccer, why force customers to watch the Timbers game on a small corner screen so that the main television can show the Milwaukie Bucks-Atlanta Hawks playoff game? Do Portlanders really care enough about that game?
The company also needs to work at creating more 'localized' advertising. Allow a place with no major NFL team to advertise college football. Allow a place where soccer is more important to advertise MLS games. Follow the leader here folks. Invest in market research that maximizes regional advertising rather than generic national advertisements.
If BWW does not want to become the dinosaur of casual sports dining, they are going to have to adapt to a rapidly changing environment. They have taken the first step, will they continue to move forward? That remains to be seen.
