The Largest US BBQ Chain Is Struggling — Here's Why

When it comes to barbecue, Dickey's Barbecue Pit has dominated the landscape for years. In 2017, the company had a staggering 570 locations across the country. Their famous slow-smoked hickory barbecue has been a big hit not just in America but globally, with locations in Canada, Mexico, the Philippines, and the UAE. But over the last few years, the company has been on a serious downturn, with over 170 locations closing since 2018. The reasons are hard to nail down as the company and franchisees have offered different explanations for the struggles.

In court documents obtained by Restaurant Business, one franchisee placed the blame on the company having "extreme and unreasonable demands." The court filing includes complaints of cost overruns when opening a new location and overcharges from the company-approved supplier of food and supplies. Some franchisees have claimed they were sold overpriced and faulty equipment that the company wouldn't fix or replace. That cuts into any potential profits, especially when the corporation also advertises frequent discounts for customers that franchisees must absorb, and they are unable to raise their own prices to offset the losses. Lawsuits have also been filed against Dickey's for making false and misleading promises.

In a blog, the company cites "macroeconomic pressure, geopolitical instability, and reduced consumer spending" as problems for all businesses, while also placing blame on franchisees who go "off script" and don't adhere to company standards.

Despite the many closures, Dickey's is still expanding. In June 2024, months before dozens of locations closed, the company signed an agreement to expand into Alberta, Canada. The chain planned to focus on store and menu upgrades, as well as a sales reimbursement program for franchisees who were performing well.

The company's website currently lists 376 restaurants still in operation. The company was founded in 1941 in Dallas and didn't begin franchising until the 1990s. After that, it took off and was once called the fastest-growing restaurant chain in the United States (though it still didn't make our list of the best BBQ places). 

Clearly, some growing pains came with Dickey's growth. There are reports from as far back as 2015 of Dickey's reselling failed franchises to other operators, a process called churning. In fiscal year 2024, 106 stores were sold from one franchisee to another, according to Restaurant Business. 

Only time will tell what the future holds for Dickey's, so if you like its pit-smoked brisket or crispy fried okra, you may want to head to your nearest location sooner rather than later. There's no telling how long they might be around.