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Shrinking Dickey


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2024 Dec 17, 9:53am   82 views  6 comments

by Al_Sharpton_for_President   ➕follow (5)   💰tip   ignore  

America's Largest BBQ Chain Abruptly Shutters 30 More Locations As Sales Plunge.

The chain, which has been closing locations for years, shuttered nearly 100 during the 2024 fiscal year.

After shuttering nearly 100 locations within 12 months, America's largest barbecue chain has reportedly been hit with another wave of closures amid significant sales declines.

Dickey's Barbecue Pit revealed in a franchise disclosure document (FDD) this past fall that operators had closed 97 locations during the chain's 2024 fiscal year, which ended on May 31. With new restaurant openings factored in, Dickey's shuttered a net total of 85 locations—about a 19% decline in its unit count from the start of the fiscal year.

According to a new report from Restaurant Business Magazine, Dickey's closures didn't stop after May. Franchisees told the publication that more than 30 additional restaurants have closed their doors in the months since then.

Dickey's did not immediately respond to our queries for comment on the report or confirmation on the exact number of closures since May. But this past October—after the chain's FDD revealed it had closed 97 locations during the 2024 fiscal year—the company told Eat This, Not That! that it had been working to "clean up" and strengthen its restaurant system.

Those efforts included closing most of Dickey's virtual eateries, ending franchise agreements with some non-compliant locations, and ensuring the right people were running restaurants.

"We listened to our operators and we made the strategic decision to strengthen our core before growing again," Jeff Gruber, senior vice president of franchise relations, said in a statement at the time.

Franchise sales allowed Dickey's to see a growth spurt after the Great Recession and the chain peaked at nearly 570 restaurants in 2017. However, in recent years, the company has reportedly faced disputes with franchisees, sales declines, and a significant number of restaurant closures.

Dickey's system sales decreased 5.2% last year, according to data from the market research firm Technomic. Additionally, Restaurant Business Magazine reported that the chain closed 113 restaurants in 2018 and then shuttered another 140 between 2018 and May 2024. Dickey's had less than 400 locations left in operation at the end of May—and the total would be even lower after the reported 30+ additional closures. (It currently operates 866 restaurants worldwide).

Dickey's, for its part, says that it has remained an industry leader, provided significant support to franchisees in recent years, and achieved five of its highest sales days ever within the last four years, "demonstrating continued growth and demand" for its signature barbecue. And despite the recent closures, Dickey's is still working to add new restaurants to its system and previously said it plans to open four this fiscal year.

Gruber also told Eat This, Not That! in October that the company planned to increase support for its franchisees by assisting with store upgrade costs, updating the menu, paying for advertising, and reimbursing operators 1% of their sales when sales are up monthly.

https://www.eatthis.com/dickeys-barbecue-pit-closing-30-more-locations-2024/


Comments 1 - 6 of 6        Search these comments

1   Patrick   2024 Dec 17, 9:55am  

I assume that inflation in the cost of meat is making their meals unaffordable.
2   Al_Sharpton_for_President   2024 Dec 17, 9:57am  

Less disposable income in their customer segment - related.
3   clambo   2024 Dec 17, 11:00am  

I eat out all of the time, and I can attest that eating in restaurants is a budget killer (I'm not on a budget however).
People today eat out so much; maybe they're waking up that it's expensive.
Of course, the price of red meat has risen dramatically, so a meat centered restaurant will suffer unless it's an expensive joint (e.g. Ruth's Chris).
Growing up we didn't eat in restaurants often; we went to them for a graduation or birthday.
My father used to take us to a nice seafood place in Memensha at the end of the summer; the rest of the summer we ate at home whatever my mother made.
4   Tenpoundbass   2024 Dec 17, 11:17am  

Good! Real BBQ is served from the back of a pick up truck in a Home Depot parking lot or under a busy underpass. As they can't afford the rent for a boo Joo fancy location, to over charge for tasteless BQQ and outrageously priced food industry grade BBQ fare side dishes. With a staff that might now a thing or two about their regional fare from where they came, but nothing about American BBQ.

Affluent people "Cookout" more frugal people have "BBQs" no grilling a couple burgers and hotdogs is not having a BBQ.
Only people with reasonable disposable income can afford to eat BBQ out.

To me BBQ was about the sides. Greens, Baked Beans, Potato Salad, Slaw, legit Macaroni and Cheese casserole style. I can make any tasty meat and pair it up with that, and it will do just as good. Many places just sale BBQ by the pound on butcher paper. Good grief Rea!!y?
5   Al_Sharpton_for_President   2024 Dec 17, 12:37pm  

If you are ever in Birmingham, AL, which is actually a pretty trippy college town, among other things, check out Dreamland. Yeah, they’ve grown from their humble origins, but still good. Most old timey places only serve Wonderbread white bread with the BBQ.

https://dreamlandbbq.com/about-dreamland/


6   WookieMan   2024 Dec 17, 1:09pm  

If you can's turn a profit making BBQ you're a common retard. I have a 8.6lbs pork butt for $8 sitting in my freezer. Pull the bone and some reduction you're left with 6lbs of meat minimum. This is grocery store and not bulk. You can't sell a $10 pulled pork to 24 people and not turn a profit? $8 and $10 in buns and $5 in bbq sauce. $23 for $240?

And yes I get leased/owned space. Staff. Most make server minimum wage and tips. It's not expensive.

They're making shit food is the point. BBQ is a high margin game if you know how to make it. Dickey's probably doesn't know how. It's also marketing and the fact they lost their way with making the food and franchising. Never heard of the place, but that's what happens. Investors get involved that wouldn't know good pork or brisket. They don't care. They like money. Fuckers.

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