Exhibit 99.01

		NEWS RELEASE

27680 Franklin Road Southfield, Michigan 48034

FOR IMMEDIATE RELEASE

Investor Contact:		Company Contact:
Deborah K. Pawlowski/James M. Culligan		David Burke
Kei Advisors LLC		Chief Financial Officer
Phone: 716.843.3908/ 716.843.3874		Phone: 248.223.9160
Email: dpawlowski@keiadvisors.com/jculligan@keiadvisors.com		Email: dgburke@baggerdaves.com

Diversified Restaurant Holdings Exercises Purchase Option
on Existing Franchise Location

SOUTHFIELD, MI, June 30, 2010 — 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 Burgers & Fries^® (“Bagger Dave’s”), and a leading franchisee for Buffalo Wild Wings^® (“BWW”), announced today that it has exercised its purchase option on the building where it currently leases and operates a BWW restaurant in Brandon, Florida. DRH leased the building at 2055 Badlands Drive since December 24, 2003. The total purchase price of the building was $2.57 million and was financed by Bank of America, the U.S. Small Business Administration, seller financing, and the Company’s working capital.

Michael Ansley, Chairman, President, and Chief Executive Officer of DRH, commented “Our Buffalo Wild Wings location in Brandon is in an attractive area. We felt it was the right time to exercise our option on this property and secure the location, as this strategic move is anticipated to save the Company approximately $5,000 on a monthly basis.”

In early June 2010, the Company announced it had signed an agreement and is moving ahead with plans to open its sixth Florida BWW store in Ft. Myers, making it the Company’s nineteenth location under its Area Development Agreement with Buffalo Wild Wings, Inc., under which it will operate a total of 38 BWW locations in Michigan and Florida by 2017.

The Fort Myers store will be the Company’s third BWW restaurant opening in 2010. In early June, DRH announced the opening of its newest BWW location in Marquette, MI, and plans for an August opening of a new BWW in Chesterfield, MI.

The Company also opened its third Bagger Dave’s location in Novi, Michigan earlier this year and is evaluating the possibility of a fourth Bagger Dave’s opening in Michigan in the fourth quarter.

About Diversified Restaurant Holdings

DRH is a leading BWW^® franchisee, operates 17 BWW restaurants (five in Florida and 12 in Michigan), and is the recipient of many franchise awards including the Highest Annual Restaurant Sales.

Diversified Restaurant Holdings Exercises Purchase Option on Existing Franchise Location
June 30, 2010
Page 2

The Company also owns and operates its own unique, full-service, ultra-casual restaurant concept, Bagger Dave’s, 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. 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™. There’s also an electric train that runs above the dining room and bar areas. All current and future locations will be smoke-free. Currently, there are three locations in the State of Michigan. DRH has filed for rights, and has been approved, to franchise Bagger Dave’s in the States of Michigan, Indiana, and Ohio. An additional franchising filing in the State of Illinois remains open, pending review by the pertinent authorities. For more information, please visit www.baggerdaves.com.

DRH routinely posts news and other important information on its Web site at www.diversifiedrestaurantholdings.com.

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, store 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 DRH’s most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission. Undue reliance should not be placed on DRH’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.

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