The country’s largest barbecue chain has announced the closure of another 30 restaurants.
Dickey’s Barbecue Pit is about to make another brutal round of closures, after closing nearly a hundred locations in the past year.
The franchise has attributed a significant decline in sales to the need to reduce its footprint.
Dickey’s said it is working to “clean up” and improve its restaurant system so it has a better chance of surviving in a tough environment for fast-casual chains.
Changes include store revamps and an updated menu, accompanied by an advertising push.
“We listened to our operators and made the strategic decision to strengthen our core before returning to growth,” senior vice president of franchise relations Jeff Gruber said in a statement in the fall.
Dickey’s experienced strong growth between 2008 and 2017, when it peaked with approximately 570 locations.
About 28 percent of Dickey’s locations have closed in the past 18 months
In the following years, the company became bogged down in a series of disputes with franchisees.
The company also suffered a sales decline that led to the closure of restaurants, including 113 in 2018 and another 140 in 2024.
About 28 percent of Dickey’s locations have closed in the past 18 months. Restaurant business reported.
Dickey’s franchises have seen a 5.2 percent decline in sales in the past year alone, according to data from market research firm Technomic.
One franchisee, who had to close four locations due to declining sales, blamed “extreme and unreasonable demands” from Dickey’s, Restaurant Business reports.
Dickey’s is the latest restaurant chain to face mass closures during a brutal year for legacy restaurant chains.
Earlier this year, Red Lobster closed more than 100 locations and entered Chapter 11 bankruptcy before being bought out.
Denny’s recently announced the closure of 150 of its locations after five quarters of sales declines.
The once popular fast-casual also closed another 85 locations last year
Dickey’s franchises have seen a 5.2 percent decline in revenue in the past year alone
Applebee’s also closed 35 locations this year, citing consumer caution and economic conditions.
Chains are struggling to win back customers after years of inflation and price increases.
According to government data, the cost of dining out increased by 30 percent between October 2019 and October 2024.
The price of food bought in supermarkets has risen by 27 percent over the same period.