Dickey's Barbecue Pit Kicks up Their Profits With 6 Revenue Streams
The Country's Fastest Growing Barbecue Chain Maximizes Potential Of 140+ Locations
DALLAS, Feb. 10, 2011 // PRNewswire // -- Dickey's Barbecue Pit is defying the rules of fast-casual and quick-serve formats once again as they maximize each location's potential with six revenue streams.
"We are fast-casual but we are also quick-service since our meats are smoked overnight in every location. Although our food is fresh, it is not cooked to order," Dickey's Barbecue Restaurant's Inc. President Roland Dickey, Jr. said. "Most fast food chains don't have much night or weekend business and they don't have a great deal of revenue in any categories other than weekday lunches. Whereas they do about 6 meals a week at their peak— we do 14."
But, Dickey said the real money isn't in dine-in business for Dickey's owners—dine in, he said, is really only one third of profits their franchisees can expect to bring in.
Dickey's revenue streams consist of catering, dine-in for lunch, dine-in for dinner, bulk pick-up items, home-meal replacement and limited time offers like Dickey's holiday meals and the currently popular Spicy Cheddar Sausage.
"Our Spicy Cheddar Sausage has only been around about a week or so and it has become a huge hit with our customers! In turn, profit margins are great for our franchisees with this product—and that is the name of the game," Dickey said.
Spicy Cheddar Sausage has been a recent success for the chain and an illustration of their potential, but Dickey's business model has stood the test of time.
The company's 3rd Generation President also said their Owner/Operators get "to the green" quicker than any of their competitors.
"Our advantage is that we are able to open cheaper than other small footprint franchises and do considerably more sales than them. The key is to pack as many streams of revenue in as small of a footprint as possible," he said.
Dickey said catering is probably one of the chain's most profitable avenues.
"Catering sales make up 0 to 3 percent of fast fooders and fast casual business, with the average being about 1 percent. Dickeys is averaging about 12 across the board," he said, smiling. "This is for two reasons. First of all, there is a natural relationship between barbecue and catering. So, that would be nature and the second part is nurture. We train our owners to market catering and push catering to new and existing customers. Numbers don't lie— at 12 percent, we know it is working."
As the school year is in full swing, home meal replacement is currently a big driver.
Dickey said this revenue stream has become one of the strongest over the past 20 years, as both parents in the typical American family have less and less time to cook.
"Our solution for working moms and dads is our 'Family Pack,'" he said. "This is not only a great value for them, it is for us as well. We are reaching the whole family on a school night, where their schedule may not permit them to dine out, and we are making it convenient for kids and parents to eat a quality meal, not everyone can do that for 5 to 7 bucks a person."
Dickey's Barbecue is the fastest growing and largest barbecue restaurant chain in the country with 140 locations in 33 states.
The first Dickey's Barbecue opened in 1941 in Dallas, TX.
The original location is still open for business and Dickey's Barbecue is still owned and operated by the Dickey Family.
Even today, Dickey's still slow smokes all of their signature meats overnight in every restaurant.
SOURCE Dickey's Barbecue Pit