America's Largest BBQ Restaurant Chain Is Failing. Here's Why

American barbecue culture continues to thrive. Whether it's newfound regional attention from the likes of Michelin or increased consumer intrigue in lesser-known barbecue chains, many still love to bite into slow-cooked meats. Yet all while such meat fanfare continues, America's largest barbecue chain — Dickey's Barbecue Pit — isn't doing so well.

The business started all the way back in 1941 in Dallas, Texas, eventually expanding to hundreds of locations. Yet 2024 proved an especially tough year for the enterprise; sales dropped by some 18.1%, all while nearly 20 locations closed, according to Nation's Restaurant News. Amidst the mid-2020s, many chains face economic struggles — it's a tough time in the market. Although Dickey's downturn is especially dramatic, it is likely predominantly caused by an internal management situation.

In the last few years, issues surrounding franchising have plagued the business. Well over half of Dickey's locations operate under a franchisee, a model the chain employed for decades. Yet the relationship between the chain's sales representatives and business owners has proved increasingly strenuous in the 2020s. Reports indicate Dickey's management projected unrealistic earnings, attached unexpected operating fees, and urged continued operation despite low sales. Such events even led to legal action, laying claim that Dickey's executives knowingly provided bound-to-fail business models, all before buying up failing stores. While Dickey's ownership denies such issues, outlets close at a record pace.

As the tensions mount, Dickey's executives place blame on individual franchise owners. Management even suggests the business is on the upswing — with profits increasing and new outlets on the rise. Yet current economic markers show quite a different trend, which makes Dickey's statements appear less savory than their brisket.

The Restaurant Business Magazine reports that in the fiscal year leading up to May 2024, some 85 locations fully shuttered, while an additional 105 changed ownership. Considering the restaurant currently operates 376 Dickey's Barbecue Pit locations — and once had over 550 at its peak — that's quite a business hit. The financial problems involve their still-operating restaurants, too. The Nation's Restaurant News notes that Dickey's Barbecue Pit's profit fell by an average of 8% across locations. So, taken in combination with franchising struggles, such figures reveal a comprehensively struggling chain. 

Business decisions like fixed menu prices, unrealistic discounts, and steep mandatory food suppliers' costs all place a burden on the individual business. Subsequently, many franchise owners continue to operate at loss — often in hopes of repaying steep initial investments. And while a few locations do succeed in making money, such struggles reflect in both the financial figures and the consumer experience. Dickey's barbecue didn't land high on Food Republic's barbecue chain ranking, and with the current trend, the future's looking grim. Unless they plan a nostalgic comeback like Red Lobster, more closures await.