updated 6/1/2011 10:46:45 AM ET 2011-06-01T14:46:45

  • Executes agreement to purchase former Big Boy® location
  • New store will be third to open in 2011

SOUTHFIELD, Mich., June 1, 2011 (GLOBE NEWSWIRE) -- Diversified Restaurant Holdings, Inc. (OTCBB:DFRH) ("DRH" or the "Company"), the owner/operator and franchisor of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Legendary Burger Tavern® ("Bagger Dave's") and a leading franchisee for Buffalo Wild Wings® ("BWW"), today announced they have signed an agreement to purchase the land and building of a former Big Boy restaurant located at 2817 Kraft Avenue Cascade Township, MI. The property is on the southwest corner of Kraft Ave and 28th St. SE across the street from a Crowne Plaza Hotel, a Meijer and in close proximity to other popular retail outlets. The restaurant plans to open at the end of 2011.        

"We're excited to serve the Grand Rapids community with our sixth Bagger Dave's restaurant. With a growing population, Grand Rapids is Michigan's second largest city, making this a key location to help build the Bagger Dave's brand. It's a high-profile location consistent with our plans to expand Bagger Dave's through corporately-owned and franchised locations throughout Michigan, Indiana, Ohio, Illinois, Kentucky and Wisconsin," commented Michael Ansley, President and CEO of DRH.

Intended to fill the niche between fast food and casual dining, Bagger Dave's provides quality food at an ultra-casual price point in a full-service, neighborhood-oriented environment. The menu features fresh food, several signature items, and the ability for each customer to create their own "legend" burger. Complemented by house-made sauces and a full-service bar featuring Michigan craft beers, Bagger Dave's is truly a one-of-a-kind dining experience.

DRH is the owner/operator and soon to be franchisor of Bagger Dave's Legendary Burgers & Fries®, a unique, full-service, ultra-casual restaurant and bar. The Company developed the unique Bagger Dave's concept in 2007 and currently owns and operates four Bagger Dave's restaurants in Michigan with a fifth restaurant scheduled to open in East Lansing this fall. It opened its first two locations, in Berkley and Ann Arbor, in 2008, a third location in Novi in February 2010 and a fourth location in Brighton in February 2011.

DRH is also a leading franchisee for BWW. It opened its 21st location in Lakeland, Florida in February 2011, and announced its 22nd location to be opened later this year in University Park, Florida.

About Diversified Restaurant Holdings, Inc.

DRH owns and operates its own unique, full-service, ultra-casual restaurant and bar concept, Bagger Dave's Legendary Burger Tavern®, which was launched in January 2008. The concept focuses on local flair with the interior showcasing historic photos of the city in which it resides. It also features an electric train that runs above the dining room and bar areas. Bagger Dave's offers a full-service, family-friendly restaurant and bar with a casual, comfortable atmosphere. The menu features freshly-made burgers (never frozen), accompanied by more than 30 toppings from which to choose, fresh-cut fries, hand-dipped milkshakes, and a selection of craft beer and wine. Signature items include Sloppy Dave's BBQ®, Train Wreck Burger®, and Bagger Dave's Amazingly Delicious Turkey Black Bean Chili®. Currently, there are four locations in the state of Michigan. DRH is approved to franchise Bagger Dave's in the states of Michigan, Indiana, Ohio, Illinois, Kentucky and Wisconsin. For more information, please visit www.baggerdaves.com.

The Company is also a leading BWW franchisee and currently operates 21 BWW restaurants (seven in Florida and 14 in Michigan). The recipient of many franchise awards, including an award for the Highest Annual Restaurant Sales, DRH remains on track to fulfill its Area Development Agreement with Buffalo Wild Wings, Inc., which requires a total of 32 BWW restaurants in Michigan and Florida by 2017. Combined with the six restaurants DRH has outside of this Area Development Agreement, the total restaurant count for the Company will be 38.

Safe Harbor Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. Forward-looking statements are based upon the current beliefs and expectations of management. All statements addressing operating performance, events, or developments that DRH expects or anticipates will occur in the future, including but not limited to franchise sales, restaurant openings, financial performance, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units, or the market price of its common stock are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of risk factors and uncertainties including, without limitation, our ability to operate in new markets, the cost of commodities, the success of our marketing and other initiatives to attract customers, customer preferences, operating costs, economic conditions, competition, the availability of financing for franchisees and the Company, and the impact of applicable regulations. These and other risk factors and uncertainties are more fully described in the Company's most recent annual and quarterly reports filed with the Securities and Exchange Commission. Undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, DRH disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

CONTACT: Investor Contact:
         Steven Marcus
         DME Capital, LLC
         Phone:  917-648-0663
         Email: steven@dmecapital.com
         
         Company Contact:
         David G. Burke
         Chief Financial Officer
         Phone: 248.223.9160
         Email: dgburke@baggerdaves.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

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