Like many restaurant brands, Dickey’s Barbecue Pit leaned heavily into virtual brands during the pandemic as an added revenue channel when off-premises business accelerated. The company expanded through a partnership with Ghost Kitchen Brands in 2021, for instance, and launched a virtual brand called Wing Boss that same year.
Dickey’s also launched Big Deal Burger, Trailer Birds Hot Chicken, and Barbecue at Home. Now, the Dallas-based company says it will stop expanding five of its non-barbecue concepts and retire licensing agreements outside of its traditional franchise system. Dickey’s is also terminating and transitioning “non-compliant” restaurants that are both traditional and licensed locations.
These efforts are part of the company’s broader strategy – launched in celebration of its 83rd birthday this month – to “reinforce its commitment to operational excellence and brand consistency.”
In a release, the company said the past year has been spent focusing on its core, barbecue roots under the leadership of Roland Dickey Jr., chief executive officer of Dickey’s Capital Group, and Laura Rea Dickey, CEO of Dickey’s Barbecue Pit.
“This anniversary is not just a celebration of our history, but of our future,” Laura Rea Dickey said in a statement. “Over the past year, we’ve doubled down on our barbecue and paused our focus on some of our other concepts. We have spent the past year prioritizing our barbecue menu, strengthening our franchise system and reinvesting in our restaurants.”
Other initiatives include expanding the menu to Southern staples such as fried chicken, country fried steak, loaded mashed potatoes with gravy, and stuffed baked potatoes.
Dickey’s has also launched a capital improvements campaign targeting restaurant upgrades and store remodels. Additionally, its "brand champion" program has been expanded to give 20% of royalties back to franchisees who meet brand standards.
“Continuing to serve better and better barbecue and build the Dickey's brand takes us back to our legacy and what my grandfather began in 1941. It's a heritage that we're really proud of, and we will continue to carry it well into the future — hopefully for another 83 years,” Roland Dickey Jr. said in a statement.
This strategic plan comes as Dickey’s latest franchise disclosure document, released last week, shows that 97 locations ceased operations in fiscal 2024, while 12 new outlets were opened, for a net loss of 85 units. This equates to about 19% of its domestic base. Additionally, earlier in September, Smokin’ Dutchman Holdings, a Dickey’s franchisee operating four locations in Western Michigan, filed for bankruptcy.
According to Technomic data, Dickey’s domestic system has retrenched each year since at least 2019, when it had 506 locations and $350.5 million in sales. The company finished 2023 with 469 locations and about $322 million in sales.
Notably, however, Dickey’s subsidiary, Wycliff Douglas Provisions, a Texas-based meat processing company launched in 2022, continues to grow, registering a 105% year-over-year increase in sales and a 200% increase in its customer base. WDP has also extended its shipping beyond Texas to all U.S. markets.
“This expansion allows us to better serve our customers and meet the increasing demand for our high-quality meat products,” Laura Rea Dickey said in a statement.
Contact Alicia Kelso at [email protected]
