America's Largest BBQ Chain Abruptly Shutters 30 More Locations As Sales Plunge
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 faced major 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 alone and then shuttered another 140 between 2018 and May 2024. Dickey's had 385 locations left in operation at the end of May—a total that's now even lower after the reported 30+ additional closures.
Despite the recent blows to its footprint, 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.
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