"On the franchisee side, the blame has been placed squarely on the company having "extreme and unreasonable demands" for its franchisees. They complain of cost overruns when opening a new location, which means they end up spending far more than planned or promised. Potentially worse, the company-approved supplier that they need to use for food and supplies overcharges, according to franchisees."
"Some have claimed they were sold overpriced and faulty equipment that the company wouldn't fix or replace. That cuts into any potential profits, especially when the corporation also advertises frequent discounts for customers that franchisees must absorb, and they are unable to raise their own prices to offset the losses. Lawsuits have also been filed against Dickey's for making false and misleading promises."
"The company's position is that outside elements are to blame. The company cites "macroeconomic pressure, geopolitical instability, and reduced consumer spending" as problems for all businesses. For Dickey's specifically, it blames franchisees who go "off script" and don't adhere to company standards as the reason so many failed. Locations that didn't have "the right people" running them were shut down."
Dickey's Barbecue Pit grew to about 570 locations by 2017 and expanded internationally to Canada, Mexico, the Philippines, and the UAE. Over 170 locations closed since 2018, with additional closures continuing into 2025. Franchisees report extreme and unreasonable demands, cost overruns opening new stores, overcharging by a company-approved supplier, and overpriced or faulty equipment that the company would not fix. Franchisees also absorb corporate-promoted discounts and cannot raise prices, prompting lawsuits alleging false and misleading promises. The company attributes closures to macroeconomic pressure, geopolitical instability, reduced consumer spending, and franchisees not adhering to standards, while expansion persisted into mid-2024.
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