Famous Dave's

Famous Dave's of America, Inc. began on June 23, 1994, when "Famous" Dave Anderson, an Ojibwe Choctaw, opened his first restaurant near Hayward, Wisconsin. He had spent more than two decades developing his sauces, rubs, and cooking methods. A second shack style restaurant opened in Minneapolis in 1995, the same year Famous Dave's received a blue ribbon for "Best BBQ Sauce in America" at the American Royal International Barbeque Contest. Corporate filings list Chandler, AZ, while the company operates from Minnetonka, Minnesota, United States. Unit counts vary by source. The 2024 Franchise Disclosure Document reports 81 franchised locations in the USA across 26 states, with 35 in the West. Other reports list more than 125 locations in 31 U.S. states and three countries in October 2020, then 117 locations in 31 states and two countries as of November 5, 2020, including 29 company owned and 98 franchise operated restaurants. In 2021, the network reached 180 locations in 33 U.S. states and four international locations in Abu Dhabi, Al Ain, Dubai, and Winnipeg. By February 2025, it had more than 100 locations across 31 states, Canada, and the United Arab Emirates. Some records report 11 total units and 16 franchised units, while another source places the network at 116 locations nationwide in June 2024. The brand is described as the second largest barbecue chain in America. The broader full service restaurant market is projected at USD 1.59 trillion globally in 2025 and USD 2.05 trillion by 2035, with a Compound Annual Growth Rate of 2.6% over that period. Famous Dave's offers established BBQ positioning through several operating formats and a national footprint.

Famous Dave's operates in the full service restaurant category, where consumer preferences, technology, and culinary creativity continue to shape demand. The global market is projected to grow from USD 1.59 trillion in 2025 to USD 2.05 trillion by 2035 at a Compound Annual Growth Rate of 2.6%. The U.S. market is expected to grow at a 3.5% CAGR from 2025 to 2035, supported by dining out and technology use. The broader restaurant and food service industry was forecast to exceed $1 trillion in sales in 2024, add 200,000 jobs, and reach total employment of 15.7 million people. Consumers are showing interest in experiential dining, interactive menus, chef led concepts, AI produced recommendations, automated reservations, contactless payments, data based pricing, demand forecasts, and personalized menu suggestions. Sustainability and health preferences are increasing interest in locally raised, organic, and plant based foods. Off premise dining has also expanded through takeout, delivery, ghost kitchens, and drive thru service. Famous Dave's off premises sales represented about 40% of revenue around 2018 and have grown since then. Interest in distinctive sauces, rubs, and smoked meats aligns with the brand's culinary offering.

The standard initial franchise fee is $35,000, while some sources report fees up to $45,000 or from $35,000 to $45,000. A ghost or cloud kitchen add on has a $10,000 franchise fee. Selected candidates may receive discounted three unit and five unit fees, and a multi unit agreement may reduce the fee for each additional location. Total initial investment ranges from $481,750 to $4,510,750+. A full service restaurant requires $1,299,250 to $2,910,750, or up to $4,510,750+ when real estate is purchased. Counter service, Quick Service, or Line Service requires $718,750 to $1,515,750 when leased, or $735,750 to $1,525,750 under another investment range. Another source reports $481,750 to $1,060,750 for the QSR model. The ghost kitchen add on ranges from $68,500 to $645,000 when leased. Ongoing charges include a monthly royalty of 5% of gross revenue and a marketing and advertising contribution of 1% of revenue. Typical qualification standards include liquid capital of $200,000 or $300,000, net worth of $500,000 or $650,000, and a credit score of 700 or higher. Working capital is estimated at $20,000 to $45,000. First three month employee salaries are estimated at $25,000 to $50,000 for Counter Service and $60,000 to $95,000 for Full Service. Miscellaneous expenses range from $5,000 to $10,000 across formats. Grand opening costs range from $5,000 to $15,000 for Counter Service and Ghost Kitchen, and $15,000 to $25,000 for Full Service. Additional funds for the first three months are estimated at $5,000 to $15,000 for Counter Service and $5,000 to $10,000 for Full Service and Ghost Kitchen. BBQ Holdings Inc. (NASDAQ: BBQ), the parent company, was acquired by MTY Food Group in 2022.

The operating system covers food preparation, customer service, financial management, and local marketing. Staffing and labor costs vary by format, with three month salary estimates of $25,000 to $50,000 for Counter Service and $60,000 to $95,000 for Full Service. Available formats include full service restaurants, Quick Service or Counter Service locations, and ghost kitchen add ons for off premise dining. A new prototype for 2025 was tested in Arizona and launched in Brookfield, Wisconsin, in March 2025. The fast casual model uses less than 2,000 square feet, has 15 to 20 seats, and costs approximately $500,000 to build. It targets non traditional spaces and emphasizes takeout, catering, and online ordering. The company is also adding drive thru capabilities and has pursued dual restaurant sites with partners such as Johnny Carino's. Training includes 280 hours of on the job instruction and 75 hours of classroom instruction covering food preparation, customer service, financial management, and marketing. Continuing support includes operational assistance, proprietary recipes, culinary updates, marketing, real estate and site selection guidance, technology tools, third party delivery integration, and catering support. The system also supports multi unit expansion. Target territories have at least 75,000 residents within a 3 mile radius or 80,000 within a 10 minute drive, plus a daytime population of at least 35,000 within 3 miles or 55,000 within a 10 minute drive. The model can suit owner operators and experienced multi unit investors using absentee ownership.