Dickey’s Brings Texas Slow-Smoked Meat to More Cities
Entrepreneurs seem to have a hankering to serve up some Texas barbecue, Dickey’s Barbecue Pit style.
The 78-year-old Dallas-based chain recently signed four new franchisees to extend the brand into more locations outside of Texas. The latest deals will take on-site smoked meat to Hemstead, New York, on Long Island; Butte, Montana; Windsor, Colorado; and Grants Pass, Oregon.
Each state already has Dickey’s locations. Colorado has the most with 21, New York and Oregon have five restaurants each while Montana has three. The chain’s home state has the most locations with 138 of more than 500 around the United States.
“Expanding our presence nationally and internationally is an opportunity we’re always exploring, so I look forward to the success of our new locations up North,” Roland Dickey, chief executive of Dickey’s Capital Group, said in a statement.
Total investment in a Dickey’s franchise ranges between $280,819 and $481,819, according to the company. CoStar data shows that Dickey's locations are between 1,500 square feet and 5,000 square feet. The stores tend to lease space in small shopping centers, especially if the franchisee can get an end cap space, which is the location at the corner of a center with more signage opportunity.
Dickey’s also does free-standing locations, which creates opportunity for an investor to buy into the franchise indirectly and not have to smoke meat all day. The buildings are net leased, where the Dickey’s franchisee pays most of the property’s operating expenses.
The free-standing locations are sometimes for sale. One listed now in Keller, Texas, is looking to fetch $1.6 million with a 7.5% capitalization rate, or return on investment, according to CoStar data. Another Dickey’s in Marianna, Florida, is on the market for $1.58 million with a 6% cap rate.
