Are you sizzling? As peak barbecue season begins, fewer Americans are buying grills | CNN Business




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Americans have been gorging on barbecue during the pandemic, but the barbecue industry now faces a number of threats, including high meat prices and interest rates, in addition to economic uncertainty. Many don’t feel the need to upgrade relatively recent purchases.

Market leaders like premium grill maker Traeger, once a pandemic darling, reported grill sales in its latest quarter were $76.8 million — down from the $156.1 million the company raked in during the second quarter of 2021.

Top-selling grill brand Weber has also seen its market share decline since 2020, according to Traqline data. (Weber did not respond to CNN’s request for comment.) Home Depot also reported pressure on pricier patio and garden equipment, including grills, in its May first quarter, part of a broader decline in sales and profits.

And it’s not just the big brands. Local stores that sell grills and other backyard cooking equipment have also reported demand is decreasing.

“The trend is down,” said Brian Bushfield, general manager of West Coast BBQ Shop in San Diego, Calif. He noted a slow start to June and a slow Memorial Day, even though the holiday is one of the most popular times to buy new grills.

America may be less interested in buying grills, but they still use them extensively. And there’s evidence that the great evaporation of barbecue sales may have bottomed out.

Americans are not less cooking outside on grills. At least that’s according to statistics from the Hearth, Patio & Barbecue Association, which reports that 80% of U.S. homeowners owned a grill or smoker in 2023, up from 64% in 2019. Among new grill owners surveyed , 27% cited cooking more at home during Covid as their reason for purchasing.

Paul Glader/CNN

Roy Morchian, owner of American Royal Hardware in Montclair, New Jersey, says grill sales have returned to pre-pandemic levels at the local True Value franchise.

Besides barbecue grills, consumables such as charcoal pellets and propane tanks make up the Home Depot barbecue category. Joe Downey, a senior grill salesman at Home Depot, said those items are generating a large portion of sales, fueled by new customers who purchased grills during the pandemic and are returning frequently to buy fuel.

“More and more cooks are cooking at home,” he said. The cost of eating at home fell earlier this year while the cost of eating out increased, according to data from the Bureau of Labor Statistics which reported a 0.2% drop in food prices from March to April .

Roy Morchian, owner of American Royal Hardware in Montclair, New Jersey, told CNN that the number of barbecues sold in 2020 increased from an average of 80 to 120 per year at his store to 160. And even though their sales “have returned to normal” and are now approaching pre-pandemic levels, he notices that new faces have joined those who were familiar when purchasing propane tanks to fuel the Weber grills they stock.

Most grill manufacturers and retailers seem to agree that the pandemic has increased demand for grills and other durable home equipment as people look for ways to fill their days and entertain their families at home.

Paul Glader/CNN

The staff at American Royal Hardware in Montclair, New Jersey, say they place barbecue grills on the sidewalk in front of their store to market them to passing motorists and pedestrians in a busy downtown area.

San Diego Grill Pros owner Jessica Hernandez cited “astronomical” sales numbers and called 2020 the “year of the unicorn.”

Corey Martin, vice president of marketing at Texas Star Grill Shop, described crowds of people flocking to their Houston branch to buy grills and shelling out thousands of dollars for high-end models like Weber’s Genesis, which retails for $800 to $1,800, and Traeger’s Timberline, which starts at around $3,000.

“It was like a busy grocery store,” he said of his store. But he and his team knew that 2020 might be an aberration and that the bonanza might not last.

“It would be foolish to go into the grill business and think that COVID is the new normal,” Martin said. He added that grill retailers know it’s a slow-growing, seasonal industry.

Downey believes Home Depot’s barbecue sales are now stabilizing after the increase caused by confinement. He predicts that grills purchased during the pandemic will reach the end of their life cycle and bring back repeat buyers with them in 2025.

“We’ve hit rock bottom and we’re on the way back up, getting closer to the end of the (grill’s) life cycle,” he said.

A key issue is the life cycle of a grill: The average grill can last about five years, and Americans purchased more than 21 million grills and smokers in 2020. It’s clear that the replacement phase hasn’t started yet.

Meanwhile, barbecue vendors are looking for ways to boost demand.

Beyond the familiar summer promotions for popular grilling days like Memorial Day and Father’s Day, Downey said Home Depot is trying to encourage young, new owners to buy grills by introducing them to well-known brands at lower prices.

Scott Olson/Getty Images

Weber grills are offered for sale at a home improvement store on July 23, 2021 in Palatine, Illinois.

Downey said Someone who later buys a $99 Weber kettle might consider buying the compact Weber Spirit model. “Then, as they get older, they might aspire to get into the Weber Genesis,” he said, referring to the brand’s more expensive model.

Ace Hardware is running ads promoting its long-standing free assembly and delivery service on grills — from brands including Big Green Egg, Blackstone, Weber and Traeger — priced $399 and up, for Ace Rewards members, which is a free membership program.

Traeger CEO Jeremy Andrus told CNN of the period of low demand: “We’re not waiting for this to end and we’re not waiting for this to end.” » He highlighted Traeger’s hosting weekend cooking demonstrations outside retail stores like Home Depot and Ace Hardware.

“If we have the opportunity to introduce ourselves to the consumer and not only explain to them what a Traeger does, but also give them the opportunity to taste the food prepared from a Traeger, it is a tool of very efficient conversion,” he said.

Courtesy of Traeger Grills

Traeger Grills hosts demonstrations and activations at Home Depot, Ace Hardware and specialty retailers across the country.

But stimulating demand in a traditionally slow-growing sector is a challenge, said Simeon Siegel, an analyst at BMO Capital Markets who follows Traeger.

“If someone has a grill, they’re not going to buy another one just because it’s on sale,” he said. “Ultimately, if someone doesn’t need to buy a grill, there’s not a lot that companies can do to create demand.”

And economic trends haven’t helped. Among other food categories, beef and veal prices rose the fastest in 2024, and the U.S. Department of Agriculture expects prices to rise another 4% this year. Some consumers are giving up meat altogether.

A year and a half ago, Shikhiu Ing, a resident of Bloomfield, New Jersey, swapped grilled meat for greens as a conscious health decision. Although he says he fired up his grill three times a week during the pandemic, he now finds it less useful after becoming primarily vegetarian.

“It’s not functional at the moment. To be honest, grilling vegetables is kind of a chore,” he said. “It’s just faster in the air fryer. Throw in some broccoli, air fry it. You have vegetables.

Paul Glader/CNN

Shikhiu Ing is a regular customer at American Royal Hardware in Montclair, New Jersey. He says he bought a grill during the coronavirus pandemic but doesn’t use it as much since becoming a vegetarian.

The grilling industry is no stranger to declines or drastic changes in consumer demand.

Andrus noted that barbecue sales declined in the years following the 2008 recession before returning to growth over the next decade, a testament to the industry’s resilience. “Americans love to cook outdoors,” he said. “They always have and they always will.”

For Ayla Dunkley, a native of Newark, New Jersey, cooking outdoors is a family tradition. “I learned how to grill from my grandfather and my dad, so I learned everything from them,” she said.

Following his grandfather’s advice, Dunkley replaces his Blackstone cooker every three to five years and waits until the summer season is over to shop at lower prices.

Fourth of July meals will cost an average of $71.22 for 10 guests this summer, according to data from the American Farm Bureau Federation. That’s up 5% from last year and 30% from 2019.

Yet Dunkley’s annual plans to celebrate the holiday with his family in Pennsylvania are still on, complete with a barbecue.



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