The Business of BBQ: Why Running a Restaurant is a Different Game
“Man, I’ve thought about it, but…” That “but” is where reality sets in.
Ask anyone who’s mastered backyard BBQ if they’ve ever thought about opening their own restaurant, and you’ll probably get the same answer: “Man, I’ve thought about it, but…” That “but” is where reality sets in. Cooking great BBQ and running a BBQ business are two entirely different skill sets, and too many people find that out the hard way.
There’s a reason why so many BBQ joints come and go. It’s not because the food isn’t good. It’s because the business side of BBQ is a beast. You’re not just smoking meat—you’re managing costs, controlling inventory, balancing labor, and figuring out how to turn a brisket into more than just sliced beef on a tray.
So before you get stars in your eyes about opening the next legendary smokehouse, let’s talk about the reality of running a BBQ business.
1. Brisket Alone Won’t Keep the Lights On
Brisket might be the most talked-about item in BBQ, but here’s the truth: it’s usually the least profitable.
A whole brisket costs anywhere from $80 to $150, depending on the quality and market price. After trimming, shrinkage from smoking, and portioning, you might only be left with 50-60% of usable product. And that’s before factoring in labor, seasonings, fuel, and equipment costs.
If all a BBQ joint sold was brisket, they’d be out of business in no time. That’s why smart pitmasters diversify the menu with:
Sausages: A great way to use brisket and pork trim while adding variety.
Burgers: A lower-cost beef option that boosts margins.
Beef cheeks and other cuts: More affordable than brisket but still packed with flavor.
Ribs and pork shoulder: More forgiving and cost-effective meats.
The key is turning every part of the animal into a sellable product. The best BBQ spots don’t waste a thing. That brisket trim? Goes into sausage. Those pork trimmings? Might become chili. Smart pitmasters understand that profitability comes from using the whole animal, not just the most expensive cuts.
2. The Hidden Costs of Running a BBQ Business
A lot of people think BBQ restaurants are expensive because the owners are just raking in cash. Reality check: the margins in BBQ are thin.
Here’s what most people don’t realize:
Labor Costs: If you’re cooking BBQ right, you’re starting before the sun comes up. You need pitmasters, line cooks, dishwashers, cashiers, and someone who actually knows how to run the business. Payroll alone can eat up 30-40% of revenue.
Utilities: Ever paid for commercial gas, water, and electric? A full BBQ operation can rack up thousands of dollars per month just in power bills. And don’t forget the cost of running multiple commercial smokers for hours on end.
Insurance: Fire hazards? Food safety risks? You better believe insurance companies charge BBQ spots a premium to stay covered.
Paper and Packaging: Every tray, butcher paper sheet, plastic fork, and sauce cup adds up. Paper costs alone have risen 33% since 2023.
And that’s before you even get into marketing, repairs, cleaning supplies, and the ever-rising cost of meat.
So when someone says, “Why does this BBQ cost so much?”—just know that every single dollar has already been accounted for before it even hits the register.
3. Pop-Up vs. Food Truck vs. Brick-and-Mortar: What’s the Best Move?
Most successful BBQ joints don’t start with a full-fledged restaurant. They start small and scale up.
Here are the most common entry points into the BBQ business and their challenges:
Pop-Up:
Low overhead, but unpredictable sales.
Forces you to learn how to pivot quickly when things go wrong.
Builds an audience and proof of concept without committing to a lease.
The downside? Weather, permits, and relying on other venues for space.
Food Truck:
More flexibility than a restaurant, but comes with hidden costs (repairs, fuel, limited storage).
Requires a commissary kitchen for prep work, which adds expenses.
Great for mobility, but limited menu capacity due to space constraints.
Brick-and-Mortar Restaurant:
Ultimate goal for most, but high-risk and high-cost.
Rent, equipment, staff, and inventory management become major factors.
Requires consistent volume to justify the overhead.
BBQ restaurant owners who’ve been in the game will tell you: go from pop-up to restaurant or food truck to restaurant—but don’t get stuck in between. A half-step like a food truck can sometimes increase costs without bringing enough sales to justify the move.
4. How Smart BBQ Owners Maximize Profits
The best BBQ businesses don’t just rely on walk-in customers. They create multiple revenue streams to make sure they’re profitable year-round.
Here’s how they do it:
Pre-Orders & Catering: Selling bulk orders ahead of time guarantees revenue before the pit even gets fired up.
Merchandise: Hats, shirts, rubs, and sauces bring in extra income with minimal effort.
Limited-Time Specials: Unique items (like beef cheeks or pork belly) create buzz and demand.
Dine-In & Takeout Balance: A mix of in-house and to-go sales helps control labor costs.
A BBQ restaurant isn’t just about what’s on the smoker—it’s about how well you run the business behind it.
5. Should You Open a BBQ Restaurant?
The million-dollar question: is it worth it?
Here’s the honest answer:
If you love business as much as BBQ, then maybe.
If you’re willing to work 80+ hours a week while everyone else is at home relaxing, then maybe.
If you understand how to balance quality, efficiency, and profitability, then maybe.
But if you just love cooking BBQ and think running a restaurant will be fun—stay a backyard pitmaster. It’s a different game. A BBQ business isn’t just about making great food. It’s about managing costs, labor, logistics, and constantly adapting.
The people who succeed in BBQ aren’t just good at cooking. They’re good at solving problems—every single day.
Final Thoughts
If you’re serious about starting a BBQ business, start small, get your numbers right, and prepare for the grind.
If you really want to understand the full picture, I will be revisiting my 100 days of business series I started years ago. Where I break down the real cost of BBQ, the myths about profit margins, and what it truly takes to make it in the business.
Got BBQ business questions? Drop them in the comments—we’d love to hear from you. And if you’re out there running a BBQ joint right now, we salute you. Keep that fire burning.