Following the closure of almost 100 areas this previous fall, Dickey’s Barbecue Pit is gearing up for yet one more spherical of closures amid the brand new fiscal yr. Citing a major decline in gross sales, Dickey’s revealed in a franchise disclosure doc {that a} whole of 85 further areas additionally closed final yr. Franchises in every single place haven’t been resistant to the present development of declining gross sales, as manufacturers like Eegee’s, TGI Fridays and Red Lobster have discovered themselves in the same boat.
Dickey’s is reportedly working laborious to “clear up” and strengthen its restaurant system, of which has already been struggling to maintain up with the eating tendencies of right now. One step within the restrengthening course of entails closing many of the model’s digital eateries. This requires the model to finish franchise agreements with sure non-compliant areas with a purpose to guarantee the best individuals are positioned in command of working the eating places.
😋😋 SIGN UP to get scrumptious recipes, useful kitchen hacks & extra in our every day Pop Kitchen publication 🍳🍔
“We listened to our operators and we made the strategic resolution to strengthen our core earlier than rising once more,” senior vp of franchise relations Jeff Gruber mentioned in a press release this previous fall.
Post 2008, Dickey’s skilled immense development, which lasted all the best way as much as 2017, and peaked at almost 570 eating places throughout the nation. In the next years, the corporate was plagued with numerous disputes involving franchisees, in addition to a discount in gross sales on high of the huge variety of restaurant closures. The system through which Dickey’s operates inside has seen a 5.2-percent lower within the final yr alone, in accordance with information from market analysis agency Technomic.
Related: This Iconic Sandwich Chain Just Filed for Bankruptcy—Here’s What’s Happening
As was reported by Restaurant Business Magazine, the model closed 113 eating places in 2018, adopted by one other 140 by 2024. About 28-percent of the shop’s areas have reportedly closed in simply the final 18 months. By the top of May of this yr, Dickey’s had 385 areas left beneath its umbrella, of which the quantity remains to be dwindling.
Despite the present state of affairs, the Dickey’s chain is working laborious on a brand new system that ought to go into impact someday this fiscal yr. A lot of modifications have been reported on the horizon for the favored BBQ chain, together with retailer improve prices, an up to date menu, paid ads and a 1-percent of gross sales reimbursement program for operators who expertise month-to-month net-positive gross sales. Sometimes, it’s essential to shrink your whole footprint with a purpose to make it potential to give attention to the high-quality factors that matter most. We sit up for seeing how this restructure fares for the Dickey’s model.
Up Next:
Related: Sam’s Club’s Sleek and Chic 24-Piece Stoneware Dinnerware Set Has Shoppers Saying ‘You Can’t Beat the Price’
