As president and chief executive of Minneapolis-based Buffalo Wild Wings, Sally Smith has grown the casual-dining chain from 30 restaurants in 1994 to more than 750 today. She also navigated the chain through the deep recession, maintaining a steady rate of growth while competitors were falling by the wayside. Last year she was named Operator of the Year by Nation’s Restaurant News during its 51st annual Multi-Unit Foodservice Operators conference. This year, in addition to piloting BWW through another year of growth, she also is serving as chairwoman of the National Restaurant Association.



HOMETOWN: Grand Forks, N.D.

EDUCATION: bachelor of business administration, accounting, University of North Dakota

CAREER HIGHLIGHTS: growing Buffalo Wild Wings from 30 locations in 1994 to more than 750 today, serving as chairwoman of the NRA, recognition with several awards by industry, “working with an absolutely fabulous team of people”

PERSONAL: divorced, two children

HOBBIES: reading, traveling, spending time with family, cooking, golf

What do you see as the key issues facing the restaurant industry?


There are several. Research shows that most operators consider the economy as the No. 1 concern. It’s the biggest challenge. Right behind that are food costs. There is commodity pressure across the board — rising corn, wheat and soy bean prices affect all protein. Certainly rising fuel costs could have the potential to impact restaurants. Not a lot of consumers want to give up dining out, but they may select restaurants a little closer to home rather than frequent those further away. Also, there is a lot of uncertainty around the health-care law — the industry is waiting for the government to provide many details on those regulations. And then there are the usual suspects — competition, recruiting and retaining great employees.


You mentioned competition. Is that increasing again?


Yes, I think we’re starting to see an increase in development. Some regional and national chains are starting to build their development pipeline. We’re seeing more competition for real estate sites. The industry is projecting real growth for the first time in a couple of years.


You also cited health care as an issue. Specifically, what are some of the problems?


We’re still working through our calculations, [but] there are so many unanswered questions. For example, the [law’s] definition of a full-time employee at 30 hours a week in any given month [is problematic]. Also, there is no definition of minimum essential coverage. We don’t know how it will impact business. It could drive premiums up. This industry has a low profit per employee — somewhere between $4,000 and $5,000. Some statistics show [health care] will cost about $3,000 per employee annually. That pretty much wipes out our profits.


I think the industry as a whole is for affordable health-care insurance. But it must be able to fit everyone’s business model. The key is affordability.


What can restaurateurs do to deal with these issues?


Restaurateurs should meet with local congressmen and help them understand the impact of things like health-care reform. [Congressmen] like stories. We need to talk about it and educate lawmakers on the vagueness of the law and the need for definition. I can’t stress enough how important it is to share stories [with policymakers].


Where do you see the economy heading?


I guess I’m optimistic. I think we need a budget and we need to resolve the debt issue before we see a lot of confidence coming back. And high gas prices can affect restaurants, retail and travel at a time when we’re starting to see [the economy] turn back around.


How does the rest of the year look for Buffalo Wild Wings?


We have our earnings report [coming up], so I really can’t talk about it. But we have weathered the economy really well over the past few years. This year we had a strong football season, and certainly March Madness was important for the company. And now we have over 750 locations, so if consumers don’t want to drive too far, hopefully there is a Buffalo Wild Wings near them.


Contact Paul Frumkin at paul.frumkin@penton.com.