Most Dickey’s Franchises Are Unprofitable, Franchisees Report

A recent Dickey’s Franchise Owner’s Survey presents a chilling picture of a chain in crisis:  58% of Dickey’s franchise owners reported that their stores weren’t profitable in 2018.  69% reported that their 2018 financial performance was worse than the previous year.  39% are considering closing their stores.  When asked if they had it to do over again, a resounding 85% said they would NOT invest in a Dickey’s franchise.

 
(UnhappyFranchisee.Com)  Hundreds of Dickey’s Barbecue franchise locations have closed nationwide, and dozens of others have been resold to a revolving door of owners through a deliberate practice known as churning.

Dickey's Franchise Owners AssociationA recent satisfaction survey conducted by the Pit Owners Association of Dickey’s franchise owners confirmed what we’ve long reported:  current Dickey’s Barbecue Pit franchise owners are in distress, trapped by their decisions to trust what is arguably the most predatory franchise seller in recent history.

The Pit Owners Association 2019 Dickey’s Franchisee Satisfaction Survey:

The survey report states:

• Survey completed 5/30/2019
• 201 of 336 Operators participated
• 330 of 475 stores represented

• 1.73 stores per owner on average
• 4.97 years per owner on average
• 76% surveyed have been in the system longer than 3.0 years

READ: Dickey’s 2019 Franchisee Survey Excerpt 1:  Demographics, Future & Past

58% of Dickey’s Owners Report Unprofitable Stores in 2018

Question Answer
Was this store profitable in 2018? No – 58%: 117 ppl, 191 stores
Yes – 42%: 84 ppl, 139 stores
Was the financial performance of this store better in 2018 versus
2017?
No – 69%: 139 ppl, 228 stores
Yes – 31%: 62 ppl, 102 stores
Are you considering closing this location? No – 61%: 123 ppl, 201 stores
Yes – 39%: 78 ppl, 129 stores

85% of Owners Surveyed WOULDN’T Invest in a Dickey’s Franchise Again

Question Answer
If I had it to do over again, I would invest in a Dickey’s
franchise.

Overall Score: 1.5 out of 5

85% Disagree/Strongly Disagree
(171 ppl, 281 stores)

3% Agree/Strongly Agree
(6 ppl, 10 stores)

My investment with this Brand from construction costs, time investment,

monies spent and return on investment has met my expectations.

Overall Score: 1.63 out of 5

84% Disagree/Strongly Disagree
(169 ppl, 277 stores)

7% Agree/Strongly Agree
(14 ppl, 23 stores)

My investment with this Brand from construction costs, time
investment, monies spent and return on investment is
reflective of how it was initially represented to me.

Overall Score: 1.65  out of 5

81% Disagree/Strongly Disagree
(163 ppl, 267 stores)

4% Agree/Strongly Agree
(8 ppl, 13 stores)

I feel that as a Brand we’re on a path that will make 2019 my
most profitable and best year ever as a Dickey’s Franchisee.

Overall Score: 1.90 out of 5

75% Disagree/Strongly Disagree
(151 ppl, 248 stores)

12% Agree/Strongly Agree
(8 ppl, 13 stores)

My current Franchise Agreement contains provisions
that are fair and equitable to the franchisee.

Overall Score: 1.85 out of 5

75% Disagree/Strongly Disagree
(151 ppl, 248 stores)

12% Agree/Strongly Agree
(8 ppl, 13 stores)

I am considering opening/developing/acquiring more Dickey’s restaurants.

Overall Score: 1.48 out of 5

84% Disagree/Strongly Disagree
(169 ppl, 277 stores)

4% Agree/Strongly Agree
(8 ppl, 13 stores)

Dickey’s Franchise Owners Say Their Situation’s Critical & Getting Worse

Laura Rea DickeyDickey’s franchise owners express their frustration and despair in the comment section of the survey.  Here is a sampling:

Life savings gone with no real hope on any return…

We also had to close one of our three in order to make a go at keeping the remaining two open… we bought ourselves a job that we can’t even make minimum wage at this point. It is a struggle for survival every day.  After over five years of owning the locations, we should not be in this position.

I will file for Chap 7 protection in 2019. Multiple stores will be closed and multiple markets lost. I’m sure I am only one of many.

If I could find someone to buy this I would be gone tomorrow. I don’t believe Dickey’s will ever put the franchisee’s success ahead of their greed.

…would sell TODAY if these things were worth anything

If i could return in time i would had never invested in this corrupt brand.

I’ve been at it 5 years and own 3 unopened franchises. Going forward there is no way in hell I would open another with Dickeys.

My top line sales have decreased 45% over the past 3 years.

If I would have known then what I know now there is NO WAY I would have opened this franchise. Thank goodness I was smart enough to not open more.

We started with a plan to open five restaurants… After start of operations, we have reached the conclusion that DBRI is either unwilling or incapable of helping us develop the territory. this will be our last Dickey’s Restaurant.

Dickey’s Franchise Owners Blame Franchisor (DBRI) Greed for Systemwide Failures

There is a widespread sentiment among franchise owners that franchisor Dickey’s Barbecue Restaurants Incorporated (DBRI) prioritizes corporate profits and vendor kickbacks over the profitability, survival and well-being of its franchise owners.  This belief is expressed in strong terms in the Pit Owners Association comments:

It seems to me that selling franchises is more important to Dickeys corporate than keeping them alive.

DBRI has focused on selling franchise and not the profitability of the stores.

If DBRI continues to place the franchisee’s at the bottom of the food chain both franchisee’s and franchisor will die off.

Currently all efforts seem driven by corporate profits at the owners expense.

They claim to be guest first, but they are really DBRI first, guest 2nd, and owners VERY VERY last. The future can not be bright if this mentality does not change.

“Future Survivability of brand is in doubt” – Dickey’s Franchisee

Many Dickey’s franchisees believe that, at the current rate of decline, the Dickey’s Barbecue brand is in serious jeopardy:

Future survivability of brand is in doubt.

The Dickey’s name it self is so bad that even good stores can’t sell for a decent price so good or bad people are stuck.  Dickeys reputation is just bad all around.

If things continue as they are I can see a complete failure of the brand.

This brand will cease to exist in the near future unless there is sweeping and drastic overhauls at the top.

DBRI will cease to exist if it continues in this direction.

Dickey’s is a dying brand. The sales show it, the store count shows it, and the only way out is to remove Roland and family from the picture.

Until we get a CEO/President that is qualified to run this company, independent of the Dickey family, we will never thrive.

HELP FUND MORE REPORTING ON DICKEY’S BARBECUE PIT

Dickey's Franchise ExposeHelp us finish our special report:

Burnt Ends – Dickey’s Barbecue Franchise Exposed

ALSO READ:

DICKEY’S BARBECUE PIT Franchise SBA Loans Investigated by U.S. Senator

DICKEY’S BARBECUE PIT Franchise Complaints

DICKEY’S Franchise Owners Share Frustrations & Fears

Roland Dickey Jr. Extracted Millions While Dickey’s Franchise Owners Fought for Survival

DICKEY’S BARBEQUE PIT Franchise Closures, Internal Turmoil Revealed By UUnhappyFranchisee.Com

DICKEY’S Franchise Class Action Lawsuit Filed in CA

DICKEY’S BARBECUE PIT Closed Location List – UPDATED

DICKEY’S Franchise Graveyard

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TAGS: Dickey’s Barbecue Pit, Dickey’s, Dickey’s Barbecue Pit franchise, Dickey’s franchise, DBRI, Dickey’s Barbecue Restaurants Incorporated, Dickey’s closed, Laura Rea Dickey, Roland Dickey Jr., Dickey’s Pit Owner’s Association, Dickey’s Franchisee Survey, franchise opportunity, franchise complaints, unhappy franchisee

8 thoughts on “Most Dickey’s Franchises Are Unprofitable, Franchisees Report

  • July 24, 2019 at 10:33 pm
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    Please list the latest updates on dickeys barbecue closing list.

  • July 24, 2019 at 10:34 pm
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    I believe people who work hard for their money should not invest in a franchise.

  • July 25, 2019 at 9:59 am
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    Ryan Wenrich President of the Pit Owners Association for Dickey’s BBQ has closed all 6 of the stores he owns in the Kansas/Missouri Market in 2019 most in the last month. Another Bankrupt Owner.

  • July 25, 2019 at 12:19 pm
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    Shouldn’t companies like IFPG be held accountable for some of these closings? They use deceptive images, practices and even trickery to get you to open emails.

    How much did the International Franchise Professionals Group (aka smoke and mirrors) make off of Dickey’s BBQ or the beloved “Cuppies”?

    Wake up and hold some people accountable.

    Red, we always viewed you as a man of integrity and a man of God, but you’ve hooked up with some people and creatures that don’t support that. I’ll miss you Red!

  • July 25, 2019 at 6:35 pm
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    Laura Rae looks like a porker in the above picture

  • July 30, 2019 at 3:48 am
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    What’s scary is this survey doesn’t count that 113 stores that closed in 2018.

  • August 20, 2019 at 12:29 am
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    How much did the international franchise professionals group makes off for Dickey’s BBQ or the beloved “Cuppies”?

  • September 12, 2019 at 1:29 am
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    With statistics like this, I wonder how they are selling ANY new locations. They used to open 2-3 a week, now it seems it is 1-2 a month and they close quite a few more than that.

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