DALLAS, TEXAS: Last year, more than 100 sites of a well-known barbecue restaurant that was founded in Dallas, Texas, 83 years ago have shuttered.

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
loading...

According to Restaurant Business Online, in the past 18 months, 28% of this company's restaurants have closed, and there are rumors that more will follow.

92.9 The Lake logo
Get our free mobile app

For the time being, Dickey's Barbeque Pit is the biggest chain of barbecue restaurants in America. Owner Travis Dickey founded the business in Dallas, Texas, in 1941. The original facility is still open and can be found at 4610 N Central Expy, Dallas, Texas. Dickey's Barbecue Pit Central is the name of the place.

In 1994, the business started franchising, and in 2018, it established its first restaurant abroad.

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
loading...

Dickey's is not the first BBQ casual restaurant to face the harsh reality of rising labor and food expenses, according to Restaurant Business Online. Over the past two years, the company's profits have decreased by 24% and by 12.5% from the previous year.

With all that said, Eat This, Not That is reporting that Dickey's told them they will be opening up new locations in the future, including plans to open four this fiscal year.

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
loading...

I asked ChatGPT to give me seven reasons why a BBQ restaurant could struggle financially, and I think it pretty much hit the nail on the head of why the majority of these locations are having to shut down.

Here are seven reasons why a BBQ restaurant might struggle financially:

  1. High Food Costs
    BBQ typically requires premium cuts of meat and slow-cooking methods, leading to high food costs. If these costs aren't carefully managed or reflected in menu pricing, profit margins can suffer.
  2. Inconsistent Food Quality
    BBQ is labor- and skill-intensive, with a focus on smoking and seasoning. Inconsistent preparation can lead to dissatisfied customers and a damaged reputation.
  3. Poor Location
    If the restaurant is in a low-traffic area or a location not conducive to attracting customers, it may struggle to draw in enough patrons to sustain itself.
  4. Seasonal Demand
    BBQ is often associated with warm weather. If the restaurant doesn't diversify its offerings or adjust for colder seasons, it might see significant revenue drops in the off-season.
  5. Weak Marketing and Branding
    In a competitive market, failing to establish a unique brand or effectively market the restaurant can make it difficult to stand out. Limited online presence or poor customer reviews can also deter new customers.
  6. Operational Inefficiencies
    Poor management of labor, inventory, and other operational costs can drain resources. Overstaffing or underutilizing kitchen equipment can exacerbate financial strain.
  7. Limited Menu Appeal
    If the menu is too niche or doesn't cater to dietary preferences (e.g., vegetarians or health-conscious diners), the restaurant may miss out on a broader customer base.
Photo by Sergey Kotenev on Unsplash
Photo by Sergey Kotenev on Unsplash
loading...

These factors can contribute to financial struggles if not addressed effectively.

8 Texas Cities With The Highest STD Rates In America

More From 92.9 The Lake