Popular Texas Barbeque Restaurant Closing 30 More Locations

A popular Barbeque Restaurant that was formed in Dallas, Texas 83 years ago has closed over 100 locations this year.

Restaurant Business Online is reporting that 28% of this company's restaurants have shuttered their doors in the last 18 months, with rumors of more to come.

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Dickey's Barbeque Pit is America's largest chain of barbecue restaurants...for now at least.  The company was formed in 1941 by owner Travis Dickey in Dallas, TX. The original location is located at 4610 N Central Expy, Dallas, Texas, and is still in operation. It's know as Dickey's Barbecue Pit Central.

The company began franchising in 1994 and opened their first international restaurant in 2018.

Restaurant Business Online reports that Dickey's isn't the only barbecue casual restaurant change feeling the harsh reality of higher food and labor costs. The company's profits have declined 12.5% last year and 24% over the last two years.

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.

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.

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.

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