In my years covering the restaurant industry, I’ve seen independent barbecue restaurants draw lines before lunch, a clear signal of quality and customer loyalty. These kitchens often operate with minimal infrastructure, but consistently offer the best discounts 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 eateries enjoy.
FAT Brands’ handling of Smokey Bones is a recent example of how strategic choices are reshaping consumer choices.
When it comes to FAT Brands, the company has decided that “breasts beat ribs,” at least when you think of the way Twin Peaks servers dress.
He chose to convert many of his Smokey Bones BBQ restaurants into Twin Peaks locations, simply closing many others. This trend started in 2025 and continued into the new year.
Smokey Bones was acquired as a 60-unit concept by FAT Brands Inc. in 2023 and was later spun off into Twin Hospitality in January 2025.
“Twin Hospitality has prioritized optimization of the Smokey Bones footprint, identifying 19 restaurants to convert to higher performing Twin Peaks lodges,” the company said in a press release.
Two of these conversions have already been completed and are generating 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 of 2026. The chain has quietly closed more locations than originally planned.
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Some industry analysts have speculated that FAT Brands/Twin Hospitality may be looking to exit the barbecue business entirely.
“Although profitable, with the menu heavily focused on entrees like steak and brisket, which have experienced steep price increases, this year could be the end of Smokey Bones,” Restaurant Dive reported.
Smokey Bones has closed more locations than it said it would.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Smokey Bones has closed more locations than it said it would.Shutterstock ·Shutterstock
Smokey Bones’ parent company, Twin Hospitality Group, has closed underperforming restaurants as part of a broader restructuring plan.
15 underperforming Smokey Bones locations have been identified for closure; 10 closed in 2025 and the remaining five were due to close by the end of that year.
In addition to closures, 19 Smokey Bones locations are being converted into Twin Peaks restaurants (a better-performing sister brand).
The chain has closed several locations than originally planned. Sources: Restaurant Dive, FAT Brands press release
Here are some confirmed permanent closures in early 2026.
Orlando (Colonial Drive, FL): Smokey Bones has permanently closed its restaurant at 3400 E. Colonial Drive, the Bungalower reported.
Rockford, Illinois: The East State Street location of Smokey Bones closed its doors for good in January 2026, according to the Rock River Current.
West Boca Raton, FL: South Florida’s last Smokey Bones has closed after years of business, Tap Into Boca Raton said.
Maumee, Ohio: The Smokey Bones in Maumee has closed for good, according to WTOL 11.
Cheektowaga, New York: The old Smokey Bones on Walden Avenue closed in mid-January 2026, CNY News reported.
Robinson Township (Pittsburgh area), PA: That Smokey Bones location also closed, according to Hoodline.
The Smokey Bones website currently shows 20 locations open, down from the 26 the chain said it planned to remain open when it first announced the closing.
Local experts believe that the chain simply does not stand out anymore.
“I think it just reflects the fact that there are 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 [Smokey Bones] it was one of the restaurants that just wasn’t frequented as much.”
FAT Brands may “seek to reorganize through a bankruptcy proceeding” after receiving notices to accelerate the company’s debt, according to a recent 8-K filing with the SEC, UMB Bank, due to about $1.26 billion in immediately due securitized debt.
“The company previously received default notices after failing to make scheduled payments on October 27 due to insufficient funds in its collection accounts,” Nation’s Restaurant News (NRN) reported.
The filing shows that FAT Brands and its financing subsidiaries “currently do not have amounts on hand” to pay the accelerated principal and interest. The company warned that acceleration – or a potential foreclosure – could materially harm FAT Brands’ business, financial condition and liquidity, potentially leading to bankruptcy.
CEO Andy Wiederhorn believes his company can restructure its debt.
“We’ve been talking for 18 months to two years about restructuring this debt with our noteholders,” Wiederhorn said. “It wasn’t a very constructive negotiation. … We’re looking at ways to reduce the debt and make it just practical. I wish I could say this was quick and it was resolved, but it might take a few rounds.”
He noted that the company has free cash flow of $60 million.
“We just need the debt pile to be restructured to be affordable,” Wiederhorn said. “I think that’s a conclusion that our noteholders need to come to sooner rather than later.”
The parent company is struggling, according to industry reports.
“FAT Brands’ sales and profits have deteriorated over the past two years. Interest expenses on its debt totaled more than $100 million in the first nine months. Twin Peaks isn’t in much better shape. It lost $26 million in the first nine months of 2025, and its same-store sales have declined for four consecutive quarters,” Restaurant Business Online reported.
Total revenue fell 2.3% to $140.0 million, compared to $143.4 million in the fiscal third quarter of 2024.
Systemwide sales were down 5.5%.
System-wide same-store sales fell 3.5%.
Thirteen new stores were opened in the third fiscal quarter of 2025.
The company posted a 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 prior-year quarter, primarily due to a decrease in restaurant revenue resulting from the closure of 11 underperforming Smokey Bones locations, the temporary closure of two Pemokey locations and the conversion of two smaller locations to Twins, Smokey Bones same-store sales, partially offset by the opening of new Twin Peaks cabins,” the company said.
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This story was originally published by TheStreet on January 20, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.
