In my years covering the restaurant industry, I’ve seen independent barbecue restaurants draw lines before noon, a clear signal of quality and customer loyalty. These kitchens often operate with minimal infrastructure, yet consistently deliver the best cuts before closing time.

National chains are a different story. While they can serve broader markets, operational decisions, such as menu focus, location strategy, and brand management, can make it harder for them to capture the same local passion that independent spots enjoy.

FAT Brands’ handling of Smokey Bones is a recent example of how strategic choices reshape consumer options.

When it comes to FAT Brands, the company has decided that “breasts beat ribs,” at least when you consider how Twin Peaks servers dress.

It has opted to turn many of its Smokey Bones BBQ restaurants into Twin Peaks locations while simply closing many others. That’s a trend that began in 2025, which has continued into the new year.

More Smokey Bones locations close

Smokey Bones was acquired as a 60-unit concept by FAT Brands Inc. in 2023 and was subsequently spun off into Twin Hospitality in January 2025.

“Twin Hospitality has prioritized optimizing Smokey Bones’ footprint, identifying 19 restaurants for conversion into better-performing Twin Peaks lodges,” the company shared in a press release.

Two of these conversions have already been completed and generate significantly higher average unit volumes (AUVs) of approximately $7.8 million, compared to approximately $3.5 million as Smokey Bones.

Twin Hospitality has identified 15 underperforming Smokey Bones locations that it will close by the end of the first quarter in 2026. The chain has quietly closed more locations than it originally planned to close.

More Restaurants 

  • Taco Bell and KFC work on simplifying their restaurants
  • Chick-fil-A making major change to 425 restaurants nationwide
  • Bankrupt beer and pizza restaurant chain closes locations
  • Restaurant chain famed for rude waiters closes multiple locations

Some industry analysts have speculated that FAT Brands/Twin Hospitality could be looking to exit the barbecue business entirely.

“Though profitable, considering the menu is highly focused on entrees such as steak and brisket, which have faced steep price increases, this year could be the end of Smokey Bones,” Finance Buzz reported.

Smokey Bones has closed more locations than it said it would.

Shutterstock

Smokey Bones keeps getting smaller

  • Smokey Bones’ parent company, Twin Hospitality Group, has been closing underperforming restaurants as part of a broader restructuring plan.
  • 15 underperforming Smokey Bones locations were identified for closure; 10 had closed in 2025, and the remaining 5 were to be shuttered by the end of that year.
  • Alongside closures, 19 Smokey Bones locations are being converted into Twin Peaks restaurants (a better-performing sister brand).
  • The chain has closed more locations than it originally planned to.
    Sources: Restaurant Dive, FAT Brands press release

Specific 2026 Location Closures

Here are several confirmed permanent closures early in 2026:

  • Orlando (Colonial Drive, FL): Smokey Bones has permanently closed its restaurant at 3400 E. Colonial Drive, Bungalower reported.
  • Rockford, Illinois: The East State Street Smokey Bones location shut its doors permanently in January 2026, according to Rock River Current.
  • West Boca Raton, FL: The final Smokey Bones in South Florida closed after years in business, shared Tap Into Boca Raton.
  • Maumee, Ohio: The Smokey Bones in Maumee has closed permanently, according to WTOL 11.
  • Cheektowaga, New York: The longtime Smokey Bones on Walden Avenue closed in mid-January 2026, reported CNY News.
  • Robinson Township (Pittsburgh area), PA: That Smokey Bones location has also shut down, according to Hoodline.

The Smokey Bones website currently shows 20 locations open, down from the 26 the chain had said it planned to keep open when it first announced the closures.

Local experts think the chain just no longer stands out.

“I think it’s just reflective of the fact that there’s just a lot more options than in years past in the Valley,” Marc Nelson, Director of Economic Development for the City of Roanoke told WSLS. “And that was one (Smokey Bones) was one of the restaurants that just wasn’t frequented as much.”

FAT Brands faces bankruptcy risk

FAT Brands may “seek to reorganize through a bankruptcy proceeding” after receiving notices of acceleration on the company’s debt, according to a recent 8-K filing with the SEC, UMB Bank, due to roughly $1.26 billion in securitized debt immediately due.

“The company had previously received default notices after failing to make scheduled payments on Oct. 27 due to insufficient funds in its collection accounts,” Nation’s Restaurant News (NRN) reported.

The filing states that FAT Brands and its financing subsidiaries “do not currently have amounts on hand” to pay the accelerated principal and interest. The company warned that the acceleration — or a potential foreclosure on the collateral — could materially harm FAT Brands’ business, financial condition, and liquidity, possibly leading to bankruptcy.

CEO Andy Wiederhorn believes that his company can restructure the debt.

“We’ve been talking about restructuring this debt for 18 months to two years with our note holders,” Wiederhorn said. “It has not been a very constructive negotiation. … We’re looking at avenues to lower the debt and make it just make it practical. I wish I could say that this was go quickly and get resolved but it may take a couple of rounds.”

He noted that the company has free cash flow of $60 million.

“We just need the debt stack restructured to be affordable,” Wiederhorn said. “I think that’s a conclusion our note holders need to come to sooner rather than later.”

The parent company has been struggling, according to industry reporting.

“FAT Brands’ sales and profits have deteriorated over the past two years. Interest expense on its debt on its own totaled more than $100 million in the first nine months. Twin Peaks isn’t in much better shape. It has lost $26 million in the first nine months of 2025, and its same‑store sales have fallen for four straight quarters,” Restaurant Business Online reported.

FAT Brands’ sales have fallen

  • Total revenue declined 2.3% to $140.0 million compared to $143.4 million in the fiscal third quarter of 2024
  • System-wide sales declined 5.5%
  • System-wide same-store sales declined 3.5%
  • 13 new store openings during the fiscal third quarter of 2025
  • Net loss of $58.2 million, or $3.39 per diluted share, compared to $44.8 million, or $2.74 per diluted share, in the fiscal third quarter of 2024
    Source: FAT Brands Q3 earnings release

“Total revenue decreased $3.4 million, or 2.3%, in the third quarter of 2025 to $140 million compared to $143.4 million in the year-ago quarter, primarily driven by a decrease in restaurant revenue resulting from the closure of 11 underperforming Smokey Bones locations, the temporary closure of two Smokey Bones locations for conversion into a Twin Peaks lodge and lower same-store sales, partially offset by the opening of new Twin Peaks lodges,” the company shared.

Related: Costco quietly makes a major credit card change members love

==