Question

1) The widespread success of chains such as Buffalo Wild Wings and Wingstop indicates consumer demand for Buffalo wings is substantial and growing. Buffalo wings, of course, have nothing to do with buffalos—they are fried chicken wings coated in various types of generally hot sauces. How does the increase in demand for Buffalo wings affect the costs of a restaurant like Chick-fil-A, which does not sell them but sells sandwiches made from chicken breasts?

3) The managers of the Glenmorangie Distillery in Scotland advertise their single malt whiskey as “unnecessarily well made.”

a. What do you think this advertising slogan means?

b. If the slogan is literally true, have the managers maximized Glenmorangie’s profit? Why or why not?

Answer 1

Earlier restaurants followed the trend of giving free Wi-Fi to their customers, which had been a great crowd puller especially for coffee chains. But now Buffalo wild wings followed a different strategy in which they made up the set of having a happy home TV set with great LCD screens and is a great crowd puller especially under a scenario with high cost payments of TV operators and dish and Netflix subscriptions.

Their mission is to provide services with quality food delivery with a niche unique touch.

The positive aspects of their system is that they have a unique organizational structure and strategy that make them unique in their operations and drives high crowd pulling and customer retention. Their main factor is to get back repetitive customers so as to retain customers on a large scale.

The short term goals of the company is to retain customers on a high scale giving high customer satisfaction and long term goal is to sustain market competition and to establish as a successful brand.

"The restaurants focused on sports as younger clientele came to watch cable and satellite channels they couldn't afford at home," Gruley writes. "Buffalo Wild Wings became an early adopter of flatscreens and high-definition TV."

The company has also hired "guest captains" who are primarily responsible for changing TV channels.

"Buffalo Wild Wings looked fun, and cost-conscious families saw it as a two-fer," according to Bloomberg analyst Jennifer Bartahus. "If you're going to spend $40 on your family, the lure of being able to entertain yourself at the same time is strong."

By capitalizing on the fact that many customers were too broke to buy tickets for sporting events, CEO Sally Smith told Business Insider.

"We had a lot of customers during the downturn who came to our restaurants because of the cost of going to the game," Smith said in a telephone interview. "We did a really nice job of staying current and aggressively remodeling our restaurants to have a stadium look and feel."

While many chains focus on the food and the menu, Buffalo Wild Wings invests in the customer experience. The company has hired "guest captains" who are responsible for changing TV channels. They were key to the brand's March Madness strategy, vice president of marketing Bob Ruhland told Business Insider.

"This person isn't burdened with cleaning tables and delivering food," Ruhland said. "They make sure that TVs are on the right channel and are going to be really key during March Madness when people are following specific teams."