Hearth & Home June 2017

The Silver Bullet from Sunrise Metal Shop.

2017 Buyer's Guide – Barbecue Data

Note: The estimate of barbecue specialty retailers in the U.S. and Canada is derived from Hearth & Home’s circulation database. All other data are from recent surveys.

FAST FACTS

Barbecue Specialty Retailers - U.S.

2,387

Specialty Retailer Gross Revenues - Barbecue products and accessories

U.S.

<$25,000

34%

$25,000 - $99,999

17%

$100,000 - $199,999

15%

$200,000 - $499,999

21%

$500,000 - $999,999

9%

$1,000,000 - $1,999,999

4%

$2,000,000 - $4,999,999

0%

>$5,000,000

0%

Average profit margin - Gas grills

31%

Total barbecue revenues represented by barbecue accessories

12%

Average number of barbecue brands carried

4

Barbecue Specialty Retailers with indoor and outdoor barbecue selling areas

67%

Indoor barbecue selling area (median sq. ft.)

800

Outdoor barbecue selling area (median sq. ft.)

100

Began retailing barbecue products (median yr.)

2002

Barbecue Specialty Retailers displaying and selling barbecues year round

92%

Barbecue sales to previous customers

39%

Barbecue Specialty Retailers open seven days a week

12%

Barbecue Specialty Retailers who give cooking demos at least once a week

28%



In 2016, 16% of all gas grills
were sold as built-in units.



U.S. Sales of Barbecue Products
Year-to-Year Sales Change
U.S. Sales of Barbecue Products Year to Year

After a great year in 2014, sales of barbecue products slipped back in 2015 and 2016.

Barbecue Retailers’ Product Mix
Product Category % Retailers Selling
Barbecue 10%
Barbecue Hearth 37%
Barbecue Hearth Patio 46%
Barbecue Patio 6%

Hearth products are part of the mix in 83% of the stores that sell barbecues.

Retailers’ Market Area
Retailers' Market Area

Sixty-nine percent of barbecue retailers are in a market area with population under 250,000.

Retail Sales for All Products
2016
TOTAL RETAIL SALES FOR ALL PRODUCTS

Sixty-five percent of barbecue retailers have total sales for all products carried above $1 million.

Retail Sales of Barbecue Products and Accessories
2016
Retail sales of barbecue products and accessories

Thirteen percent of barbecue retailers have sales of barbecue products and accessories of over $500,000.

Gross Revenues by Category
Gross Revenues by Category

Hearth products represent 41% of gross revenues for barbecue retailers.

Stores Operated
% of Barbecue Specialty Retailers
Number of Stores Operated

Twenty-two percent of barbecue retailers operate more than one store.

Staying in the Grill Business
Staying in the Grill Business

Five percent of barbecue retailers plan to drop the category, with 12% undecided.

 

Barbecue Purchases and Sales
2016
Barbecue purchases and sales for 2014

Sixty-nine percent of barbecue purchases by the retailers occur in the first half of the year, but those purchases continue to the end of the year.

Sales of Barbecue Products
2016 Compared to 2015
Sales of barbecue products 2015 compared to 2014

Thirty-three percent of barbecue retailers were up in 2016.

Additional Services Provided
Additional service provided

Fifty-two percent of barbecue retailers now provide design services.

Grill Sales Up or Down
Grill sales up or down

Pellet grills and smokers posted the strongest year in 2016, with infrared grills, gas grills and kamados struggling a bit.

Gas Grills – Average Gross Margin
2016
Average gross margin of gas grills

Only 24% of barbecue retailers are able to maintain a gross margin over 35%.

Type of Gass Grill Sales
Natural vs. Propane
Type of Gass Grill Sales Natural vs. Propane

Sixty-four percent of gas grill sales are for propane units.

Retailers Selling Prefabricated Grill Islands
Retailers Selling Prefabricated Grill Islands

Only 39% of barbecue retailers carry prefabricated grill islands.

 

Barbecue Accessories as
Percent of Barbecue Revenues
Barbecue Accessories as Percent of Barbecue Revenues

Forty-three percent of barbecue retailers say that barbecue accessories represent over 10% of their barbecue revenues.

Consider Margins Made on Barbecue Products too Low?
Percent of Retailers
Staying in the Grill Business

A whopping 73% of barbecue retailers consider margins on barbecue products too low.

 

Retailers Selling Complementary Products
Complimentary products to barbecues

Each year, more retailers are carrying a wider variety of outdoor products.

Retailers Carrying
Sauces & Seasonings
Retailers carrying sauces and seasonings

Thirty-six percent of barbecue retailers don’t carry sauces and seasonings. That almost seems unthinkable.

Retailers Selling
Sauces & Seasonings
Retailers selling sauces and seasonings, gross sales up down or same

Gross sales were up for 41% in this group.

Retailers Not Selling
Sauces & Seasonings
Retailers not selling sauces and seasonings

Gross sales were up for only 29% in this group.

Cooking Demos To Promote Sales
Percent of Retailers
Percent of retailers who do cooking demos to promote sales

Thirty-two percent of barbecue retailers don’t demonstrate their grills.

Frequency of Cooking Demonstrations
Frequency of cooking demonstrations

Weekly appears to be the most common frequency of cooking demonstrations.

 

Barbecue Grill and Smoker Shipments North America
1987-2016

Year

Charcoal

Gas

Electric

Total

1987

7,758,700

3,657,100

99,200

11,515,000

1988

8,137,400

3,850,300

134,700

12,122,400

1989

8,114,864

3,823,262

133,319

12,071,445

1990

7,831,621

4,002,279

190,809

12,024,709

1991

6,301,723

4,261,181

142,734

10,705,638

1992

5,992,326

4,283,387

155,895

10,431,608

1993

5,890,920

5,062,665

262,945

11,216,530

1994

6,274,420

5,837,136

237,425

12,348,981

1995

5,321,924

5,800,878

261,267

11,384,069

1996

5,159,325

6,413,417

262,862

11,835,604

1997

5,041,612

6,361,102

223,402

11,626,116

1998

5,033,205

7,969,537

215,534

13,218,276

1999

6,108,427

8,639,833

203,789

14,952,049

2000

5,898,000

9,320,000

211,000

15,429,000

2001

5,404,000

8,516,000

187,000

14,107,000

2002

5,363,500

9,583,500

238,200

15,185,200

2003

5,357,000

8,446,500

293,000

14,096,500

2004

5,426,250

8,732,200

293,700

14,452,150

2005

5,752,000

8,953,500

280,800

14,986,300

2006

6,845,000

10,137,500

290,000

17,272,500

2007

6,863,000

10,281,500

287,000

17,431,500

2008

6,775,000

9,614,000

292,400

16,681,400

2009

6,164,000

8,543,000

277,150

14,984,150

2010

6,232,500

8,553,500

276,600

15,062,600

2011

6,047,000

8,445,000

288,000

14,780,000

2012

5,917,000

8,200,000

280,000

14,397,000

2013

5,590,000

8,053,000

302,000

13,945,000

2014

N/A

N/A

N/A

N/A

2015

N/A

N/A

N/A

N/A

2016

N/A

N/A

N/A

N/A

Sell Barbecues Over the Internet
Percent of retailers who sell barbecues over the internet

Only 18% of barbecue retailers are selling on the Internet.

Limit Barbecue Internet Sales to Your Marketing Area?
Impact by other retailers from internet sales

Of those that do sell over the Internet, the vast majority (85%) don’t limit those sales to their own marketing area.

Internet Sales
Impact by Other Retailers
Impact by other retailers from internet sales

Only 3% of barbecue retailers say there is no impact from other retailers selling over the Internet.

 

Selling the Concept of The Outdoor Room
Retailer’s Product Mix Yes No
Barbecue 25% 75%
Barbecue Hearth 48% 52%
Barbecue Hearth Patio 83% 17%
Barbecue Patio 74% 26%

It’s not a surprise that barbecue retailers who also carry hearth and patio products are actively promoting the concept of the Outdoor Room.

Selling the Concept of the Outdoor Room
Percent of Retailers
Selling the Concept of the Outdoor Room Percent of Retailers

It’s almost an even split among those barbecue retailers who promote the Outdoor Room, and those that don’t.

More Customers Creating Outdoor Rooms
Percent of Retailers
More Customers Creating Outdoor Rooms Percent of Retailers

Trend Alert: A whopping 68% of customers are creating Outdoor Rooms.

 

Days Closed Related to Demographics
Total Population None Monday Saturday Sunday
Under 25,000 0% 16% Open 84%
25,000-49,999 0% 5% Open 95%
50,000-99,999 18% 12% Open 70%
100,000-249,999 5% Open Open 95%
250,000-499,999 28% 13% Open 59%
500,000-999,999 25% 27% Open 48%
Over 1,000,000 14% 28% Open 58%

Every barbecue retailer is open on Tuesday, Wednesday, Thursday, Friday and Saturday. No barbecue retailers in population areas under 50,000 stay open seven days a week.

A flat roof and master bedroom suite in San Francisco was transformed into this dramatic deck with kitchen, dining and living areas. The flooring is heavy ceramic tile pavers interspersed with walkable in-floor skylights on the main deck, with ipe wood floors at the upper deck and stairs.
Photo Courtesy: ©2017 Ohashi Design Studio. www.ohashidesign.com.
Photographer: Paul Dyer Photography.

More Industry Data

2017 September Business Climate

In early October, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare September 2017 sales to September 2016. The accompanying charts and selected comments are from the 189 useable returns.

» Continue

2017 August Business Climate

In early September, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare August 2017 sales to August 2016. The accompanying charts and selected comments are from the 189 useable returns.

» Continue

2017 July Business Climate

In early August, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare July 2017 sales to July 2016. The accompanying charts and selected comments are from the 216 useable returns.

» Continue

2017 June Business Climate

In early July, Hearth & Home faxed a survey to 2,500 Specialty retailers of hearth, barbecue and patio products, asking them to compare June 2017 sales to June 2016. The accompanying charts and selected comments are from the 192 useable returns.

» Continue

2017 May Business Climate

In early June, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare May 2017 sales to May 2016. The accompanying charts and selected comments are from the 196 useable returns.

» Continue