Why America's Largest BBQ Chain Is Failing Faster Than You Can Say 'Brisket'

It may not be one of the BBQ joints Anthony Bourdain called the best, but Dickey's Barbecue Pit has been a favorite among meat lovers for years. Still, things haven't been all sunshine and roses for the chain in recent times. After a steep rise in success from 2008 through 2017, when it had 564 locations across the country, it began rapidly closing restaurants. The company now has under 400 restaurants comprising its nationwide footprint.

The question is, how could a business that seemed to be expanding without an end in sight be met with such overwhelming failure? In a word, franchising. More to the point, the chain has drawn the ire of the franchisees that put their money on the line to carry the brand, as well as make a profit for themselves. Folks who want to run a Dickey's Barbecue Pit shell out roughly $200,000 to $800,000 to get in the game, depending on who you ask. Even if it's toward the lower end, those investors aren't looking to take a loss on that investment, but that's exactly what some franchisees have alleged is happening. 

Dickey's Barbecue Pit has been dealing with a wild amount of litigation between its franchisees and the parent company for several years now. Some disgruntled franchisees have actually sued the company for reportedly misrepresenting the facts regarding how much income a location would generate and using misleading data to persuade people to run a location themselves. There was even one instance where a franchisee accused the company of putting a location up for sale without having permission from the operator.

Unfortunately, Dickey's Barbecue Pit has done little to rejuvenate faith in the brand. On the contrary, the BBQ franchise has laid the blame of not making a profit squarely on the shoulders of the franchisees and claimed that their allegations are entirely untrue. Instead, the company has asserted that the reason some franchisees aren't making as much scratch as anticipated is because they aren't adhering to the game plan that the business lays out for investors to be successful. "The breakdown was not with the brand, the franchise model, or the business — but with the franchisee's execution. The model works when it's followed," Dickey's Barbecue Pit shared in a June 2025 blog post.

These claims and lawsuits from dissatisfied franchisees make the demise of Dickey's Barbecue Pit different from other struggling restaurants, like what happened with TGI Fridays. It's not an issue that can be turned around by combing over the numbers and making adjustments here and there. The secret sauce to a successful franchise is a strong relationship with the parent company that keeps operators happy and restaurants profitable. If you have a Dickey's in your neighborhood, count your lucky stars, because unless it resolves the problems angering its franchisees, your best option for good barbecue might be teaching yourself to make juicy BBQ chicken on the grill at home.