Popular Texas-Based BBQ Joint Now Closes Dozens More Locations

It's one of the nation's most recognized BBQ restaurants, with joints in states scattered across the country. But now one popular restaurant is battling shrinking profits and seeing dozens of franchises close.

Dickey’s was founded in 1941 by Travis Dickey in Dallas, TX. In the late '90s, the company started franchising and by 2010 there were over 100 locations. However, the company saw massive growth beginning that year. Over the next seven years, it became the largest barbeque chain in the country, ballooning from 115 locations to 567 by 2017.

According to Restaurant Business, "nearly half of the franchisees of Dickey’s Barbecue either closed or sold their store over the past year, according to the company’s most recent franchise disclosure document (FDD)."

Franchisees closed 97 restaurants during the company’s 2024 fiscal year, which ended May 31. Another 106 locations were sold to other franchisees.

The company has not stopped closing down stores. And now franchisees are pointing the finger saying that it is too hard to turn a profit with the way it's set up.

the company's operators say that it's too difficult to generate a profit, according to Restaurant Business. "They complain about cost overruns on new unit openings, high costs for food and supplies from Dickey’s company-run supply chain subsidiary, frequent discounts on digital orders, and pricing limits from the franchisor."

“Some locations are viable,” Robert Zarco, an attorney who represents a number of Dickey’s franchisees and the independent franchise association, said in an interview. “But very few. Seventy to 80% are shutting down. “The whole business model is simply not working.”

For now, it would appear that if things don't change we can expect more Dickey's to be closed down as well.