Back Yard Burgers, After Many Hurdles, Gets Ready to Grow Again

Better-burger chain Back Yard Burgers had its share of struggles, even before the pandemic.

But CEO Dennis Pfaff, who joined the fast-casual in May 2020 after lengthy stints at Friendly’s and Red Lobster, is hopeful that a new prototype and upgraded technology will get the brand back into growth mode after years of declines.

He just has to get those new stores open.

A new location in Kingsport, Tenn., was supposed to debut last July or August, but supply chain disruptions, a COVID outbreak among the construction crew and contractors backlogged with prior projects have slowed everything down. That unit is now slated to open at the end of February.

Back Yard Burgers has also dealt with equipment delays and lack of availability of the Styrofoam for walk-in coolers, Pfaff said, all slowing down new store openings.

“The biggest frustration we’ve seen with opening and remodels is the amount of time it’s taken to get a project completed,” he said. “Every one of these projects has been delayed.”

Back Yard Burgers was an early entrant in the better-burger category, opening its first restaurant in 1987. By 2005, the chain had 171 locations (127 franchised stores and 44 company-owned ones), according to Restaurant Business sister firm Technomic. By 2020, it had just 43 restaurants and its same-store sales fell 16.2% from 2019 to 2020, according to Technomic.

Today, Back Yard has 46 company-owned and franchised units in Florida, Nebraska, Mississippi, Alabama, Tennessee, Arkansas, Missouri, Kentucky and North Carolina.

It opened one new restaurant in June and plans to open several more this year. Pfaff said the chain is close to inking a deal to open stores in Detroit.

“It’s been difficult, for sure,” he said. “With the brand, we have drive-thru capability, which was probably our saving grace.”

In 2017, Back Yard Burgers was acquired by Axum Capital Partners, the private-equity firm from industry veteran Edna Morris and former pro-football player Muhsin Muhammad. At that time, it had 55 locations.

Back Yard Burgers is known for having its grill front and center, to make on-premise dining more experiential.

“It’s an open flame,” he said. “We’re very proud of that. You get all the smell and scenery of backyard cooking. Lots of fire, lots of smoke.”

The chain developed two new prototypes during the pandemic and is working to standardize its buildings across the system. The new design helps streamline drive-thru versus in-restaurant operations to avoid crossing footpaths, he said. It also rolled out a new app last week.

“It gives us the ability to function forward-facing, with guests dining, as well as operate separately the drive-thru,” he said, noting that is essential as COVID continues to surge in various parts of the country.

In recent months, the chain has had to shut its dining room in some locations because of COVID-related staffing issues, Pfaff said. But the drive-thru has remained open.

The chain is also at work on wide-scale remodels, with six restaurants currently underway.

“One of the first things I was asked to do was stabilize the brand,” Pfaff said. “We’ve done a pretty good job.”

Before the omicron-fueled employee shortages, Back Yard was seeing same-store sales returning to pre-pandemic levels, he said.