A Popular American Barbecue Chain Is Closing Restaurants And The Reason Couldn't Be Clearer

It's been a rough time for restaurants – with many restaurants chains struggling in 2024 with bankruptcy and pending closures for a variety of reasons. Recent closures have affected everyone from iconic diner chain Denny's to burger chain Red Robin to TGI Fridays, and more. Now, another casual dining restaurant chain is on the chopping block: Smokey Bones Bar & Fire Grill. The story often goes that underperforming restaurants generally can't keep up with slowdowns in consumer spending — most recently due to the economic impacts of the COVID-19 pandemic. However, sometimes the truth is more complicated. Case in point, the primary reason behind Smokey Bones' closures actually started when the chain was acquired by FAT Brands in 2023. 

For starters, the chain's new ownership intends to close Smokey Bones locations in 2025 in order to convert these restaurants into another brand altogether — one that's competitive in the "breastaurant" category, Twin Peaks. Per earnings call data, Twin Peaks more profitable than Smokey Bones for the management company that now handles both restaurant chains, Twin Hospitality Group. 

It's also worth mentioning that Twin Hospitality Group spun off from FAT Brands in the midst of sky-high debt and SEC indictment scandal surrounding FAT Brands founder and chair, Andy Wiederhorn. While Wiederhorn maintains innocence regarding the charge that he misappropriated $47 million of FAT Brands funds for his personal expenses — thus damaging the liquidity of company brands — a legal ruling isn't expected until 2026. Wiederhorn previously plead guilty to federal tax charges for another company he ran in 2004.  

Smokey Bones was once a struggling barbecue chain owned by Darden Restaurants, the same operator behind Olive Garden and Longhorn Steakhouse. The Smokey Bones chain's long-simmering demise can be tracked through its declining valuation, continuing store closures, and sales patterns. Critics of private equity may also see some of its negative impact in the Smokey Bones saga, as well.

In 2008, Darden closed 54 Smokey Bones stores and sold off the remaining 73 to private equity group, Sun Capital, for $80 million. In 2023, FAT Brands acquired the remaining 61 Smokey Bones locations from Sun Capital for a measly $30 million. It's worth comparing this to the pricing and fate of another former Darden restaurant chain — Red Lobster, which Darden sold in 2014 to private equity group, Golden Gate Capital, for $2.1 billion.

At the time of the 2023 acquisition, a FAT Brands press release quoted the company's chairman (and current SEC indictment focus), Andy Wiederhorn, as saying that Smokey Bones was "a strong player in the barbecue space" and that the Smokey Bones acquisition "open[ed] the door for additional growth strategies for our sister brands." However, it's become clear that the Smokey Bones acquisition was always intended to rapidly expand the Twin Peaks restaurant franchise, via physical store conversion as opposed to the growth of the Smokey Bones brand itself.

The Twin Peaks chain features a village lodge-themed sports bar environment staffed entirely by waitresses wearing risqué lumberjack flannels. This theme also makes the conversion of Smokey Bones locations easier for ownership. In fact, Wiederhorn even specified at a conference, as reported by Restaurant Business, that the restaurant's similarities allowed for a full restaurant flip in just nine months, rather than a ground-up Twin Peaks build time of two and a half years.

Plus, unlike Hooters' claims that declining foot traffic is why it's nearing bankruptcy, business at Twin Peaks appears to be robust rather than going bust. Twin Peaks locations average $6 million in sales per year compared to a Smokey Bones average of $3.5 million. In a February 2025 FAT Brands earnings call for Q4 2024, Wiederhorn said, "We bought Smokey Bones, in late 2023, to help fuel Twin Peaks' growth, which will allow us to convert about 30 of the Smoky Bones locations into Twin Peaks." Wiederhorn added that the conversion of the remaining target stores should happen by 2026 at the latest.

While Wiederhorn has stated that Smokey Bones management can largely remain at store locations being converted, serving staff would need to fit the "Twin Peaks Girls" brand in order to retain their job. While the largely male Twin Peaks customer demographic may be thrilled at this transformation and expansion, it could be heartbreaking news for non-Twin Peaks Girls hoping for job security.