Diversified Restaurant Holdings, a franchisee for Buffalo Wild Wings (BWW), has unveiled a restructuring programme to save costs.
The restaurant franchisee expects to reduce annual costs by approximately $1.5m through the restructuring process, which includes other cost saving measures.
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According to the company, restructuring charges are expected to be approximately $2m through the second quarter of this year including approximately $400,000of non-recurring expenses incurred in the first quarter of 2019.
Diversified Restaurant Holdings Board executive chairman Michael Ansley said: “We are excited about the changes and investments being made by Inspire Brands. We have a strong franchise and are comprised of a great group of employees providing exceptional service throughout the five states in which we operate our 64 restaurants.
“In addition to this administrative adjustment, our priorities continue to be the restructuring of our debt, growing sales and leveraging our infrastructure.”
Diversified Restaurant currently operates 64 franchised restaurants in Florida, Illinois, Indiana, Michigan and Missouri.
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By GlobalDataAs part of its restructuring strategy, the company has also announced various changes to the organisation’s management.
The company’s president and CEO David G. Burke and chief financial officer Phyllis Knight have resigned from their roles. Burke also resigned his position as a director.
Ansley will assume the role of Interim CEO, and the company’s controller Toni Werner will assume the role of interim CFO.
Ansley added: “We would like to thank David and Phyllis for their contributions and wish them well in the future. I am resuming responsibility of the business supported by Jason Curtis, our long-time chief operating officer.
“We also have the benefit of Toni stepping up as interim CFO to lead our strong finance and accounting team.
“These changes and the dedication of the DRH team are a true testament to our belief in the opportunities for our business as we support Inspire Brands’ efforts to reignite Buffalo Wild Wings.”
In March this year, the franchisee company agreed to buy nine Buffalo Wild Wings (BWW) restaurant locations in Chicago, US, for $22.5m.
