LAKE CHARLES, LOUISIANA: A prominent BBQ restaurant in Louisiana that opened 83 years ago closed over 100 outlets last year. We've got all the details.

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
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Restaurant Business Online reports that 28% of this company's restaurants have closed in the last 18 months, with more rumored to follow.

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Dickey's Barbeque Pit is currently America's largest chain of barbecue restaurants. Travis Dickey, the company's owner, founded it in Dallas, Texas, in 1941. The original facility, at 4610 N Central Expy in Dallas, Texas, is still in operation. It is known as Dickey's Barbecue Pit Central.

The company started franchising in 1994 and built its first worldwide restaurant in 2018.

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
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According to Restaurant Business Online, Dickey's is not the only BBQ casual restaurant that has faced the harsh reality of rising food and labor expenses. The company's profits fell 12.5% last year and 24% during the previous two years.

With all that said, Eat This, Not That reports that Dickey's has informed them that they would be adding new locations in the future, with plans to open four this fiscal year..

Photo by Luis Santoyo on Unsplash
Photo by Luis Santoyo on Unsplash
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I asked ChatGPT to give me five 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.

 A barbecue restaurant could struggle financially for several reasons, including:
  1. High Operating Costs: Barbecue restaurants often have high overhead costs due to the need for specialized equipment (smokers, grills, etc.), the cost of quality meat, and the time-consuming nature of slow-cooked barbecue. These costs can eat into profits, especially if the restaurant doesn't maintain high enough sales to offset them.
  2. Seasonality and Weather Dependency: Barbecue is a popular outdoor dining choice, but its success can be weather-dependent. In regions where weather is unpredictable or colder months dominate, outdoor dining and grill-based businesses might see a sharp decline in customers, leading to inconsistent revenue streams.
  3. Intense Competition: The restaurant industry is highly competitive, and barbecue eateries face fierce competition not only from other barbecue joints but also from fast casual, casual dining, and even food trucks that offer alternative dining experiences at lower price points. If a restaurant doesn't stand out with unique offerings or an exceptional experience, it may struggle to attract loyal customers.
  4. Inconsistent Quality and Service: Barbecue is a skill that takes time and precision. Inconsistent food quality, poorly prepared meat, or subpar customer service can quickly turn customers away. Regular, high-quality food and good customer service are key to retaining repeat business, and failure to deliver both can lead to negative reviews and a loss of customers.
  5. Poor Location: Location is crucial for any restaurant, and a barbecue restaurant might struggle financially if it's in an area with low foot traffic, poor visibility, or a lack of demand for barbecue food. Even a great menu and service can't overcome the challenges of a location that doesn't attract enough customers.
Photo by Sergey Kotenev on Unsplash
Photo by Sergey Kotenev on Unsplash
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These factors can contribute to financial struggles if not addressed effectively.

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