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Dickey’s abruptly closes 30 more locations as sales plummet
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Dickey’s abruptly closes 30 more locations as sales plummet

After closure of nearly 100 sites in 12 monthsAmerica’s largest barbecue chain has reportedly been hit by a new wave of closures amid a significant drop in sales.

Dickey’s Barbecue Pit revealed in a franchise disclosure document (FDD) last fall that operators closed 97 locations during the chain’s 2024 fiscal year, which ended May 31. With the new restaurant openings factored in, Dickey’s closed its doors. a net total of 85 locations…a drop of approximately 19% in the number of units since the beginning of the fiscal year.

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According to a new report Since Restaurant Business MagazineDickey’s closures did not stop after May. Franchisees told the publication that more than 30 additional restaurants closed their doors in the months that followed.

Dickey’s did not immediately respond to our requests for comment on the report or to confirm the exact number of closures since May. But last October, after the chain’s FDD revealed it had closed 97 locations in fiscal 2024, the company said Eat this, not that! that he had endeavored to “clean up” and strengthen his restoration system.

exterior of Dickey's barbecueexterior of Dickey's barbecue
Ken Wolter / Shutterstock

These efforts included closing most of Dickey’s virtual restaurants, ending franchise agreements with some non-compliant establishments, and ensuring the right people were running the restaurants.

“We listened to our operators and made a strategic decision to strengthen our core before expanding again,” Jeff Gruber, senior vice president of franchise relations, said in a statement at the time.

Franchise sales helped Dickey’s experience 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 franchiseesa drop in sales and a significant number of restaurant closures.

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Sales of Dickey systems declined 5.2 percent last year, according to data from market research firm Technomic. In addition, Restaurant Business Magazine reported that the chain closed 113 restaurants in 2018 alone, then closed 140 more between 2018 and May 2024.. Dickey’s had 385 locations still operating at the end of May, a total that is now even lower after the more than 30 additional closures reported.

Despite recent hits to its footprint, Dickey’s is still working to add new restaurants to its network and previously announced plans to open four this fiscal year. Gruber also said Eat this, not that! in October, the company planned to increase support for its franchisees by helping them fund store upgrade costs, updating the menu, paying for advertising and reimbursing operators 1% of their sales when sales increase monthly.

Zoe Strozewski

Zoe Strozewski is a staff writer for Eat This, Not That! Originally from Chicago and now living in New Jersey, she graduated from Kean University in 2020 with a bachelor’s degree in journalism. Learn more about Zoe