New York – Long lines outside independent barbecue restaurants have long been a signal of quality and loyalty, something national chains often struggle to replicate. That gap is becoming more visible as FAT Brands continues to reduce the footprint of its Smokey Bones barbecue chain, closing locations and converting others into Twin Peaks restaurants amid mounting financial pressure and strategic shifts.
Independent BBQ Thrives While Chains Face Structural Limits
Independent barbecue restaurants typically operate with lean infrastructure but strong community support, often selling out before the day ends. National chains, by contrast, must balance menu costs, branding, and location strategies across wide markets, which can dilute local appeal.
Industry analysts say Smokey Bones has struggled to stand out in an increasingly crowded casual-dining and barbecue landscape, even as demand for authentic regional barbecue remains strong.
FAT Brands Pivots Away From Smokey Bones
FAT Brands acquired Smokey Bones as a roughly 60-unit concept in 2023. In January 2025, the brand was spun off into Twin Hospitality Group, which oversees both Smokey Bones and the higher-performing Twin Peaks chain.
According to company statements reported by Restaurant Dive, Twin Hospitality identified 19 Smokey Bones restaurants for conversion into Twin Peaks lodges. Two conversions have already been completed, generating average unit volumes of about $7.8 million, compared with roughly $3.5 million per Smokey Bones location.
The company also identified 15 underperforming Smokey Bones locations for permanent closure by early 2026, quietly shuttering more restaurants than originally planned.
Smokey Bones Keeps Getting Smaller
Closures have steadily reduced the chain’s presence:
- 15 underperforming locations were targeted
- 10 closed during 2025
- The remaining five were slated to close by the end of that year
- Additional closures occurred beyond initial plans
Alongside the shutdowns, nearly 20 locations are being converted into Twin Peaks restaurants, reflecting management’s belief that the sister brand delivers stronger traffic and profitability.
Confirmed Smokey Bones Closures in Early 2026
Multiple local outlets have confirmed permanent closures at the start of 2026, including reports from Bungalower, Rock River Current, Tap Into Boca Raton, WTOL 11, CNY News, and Hoodline:
- Orlando, Florida (Colonial Drive)
- Rockford, Illinois (East State Street)
- West Boca Raton, Florida
- Maumee, Ohio
- Cheektowaga, New York
- Robinson Township, Pennsylvania
The Smokey Bones website now lists about 20 open locations, down from the 26 the company initially said it planned to maintain.
Local economic development officials say the brand no longer stands out in many markets. In Virginia’s Roanoke Valley, Marc Nelson told WSLS that increased dining competition has hurt weaker concepts like Smokey Bones.
Analysts Question the Chain’s Long-Term Future
Some industry watchers believe FAT Brands and Twin Hospitality may eventually exit the barbecue segment altogether. Restaurant Dive has noted that even profitable barbecue concepts face margin pressure due to rising beef prices, particularly for brisket and steak-focused menus.
FAT Brands Faces Growing Bankruptcy Risk
The contraction comes as FAT Brands faces significant financial strain. According to an SEC filing cited by Nation’s Restaurant News, the company received notices of acceleration on roughly $1.26 billion in securitized debt, raising the possibility of bankruptcy restructuring.
CEO Andy Wiederhorn said the company has been negotiating with noteholders for up to two years and is seeking to restructure its debt to make it manageable, citing approximately $60 million in free cash flow.
Industry reporting from Restaurant Business Online paints a difficult picture: FAT Brands’ sales and profits have deteriorated, while Twin Peaks itself has posted losses and declining same-store sales.
Sales and Earnings Continue to Decline
According to the company’s Q3 earnings release, reported by Restaurant Business Online:
- Total revenue fell 2.3% year over year to $140.0 million
- System-wide sales declined 5.5%
- Same-store sales dropped 3.5%
- Net loss widened to $58.2 million
FAT Brands attributed much of the revenue decline to Smokey Bones closures, temporary shutdowns for Twin Peaks conversions, and lower same-store sales.
Outlook Remains Uncertain
With Smokey Bones shrinking, Twin Peaks conversions accelerating, and debt negotiations unresolved, analysts say FAT Brands faces a narrowing set of options. Whether Smokey Bones survives as a smaller regional brand or disappears entirely may depend on how quickly the company can stabilize its finances and whether barbecue can still compete within a national chain model.
