FAT Brands' Bankruptcy Triggers Second Wave of Smokey Bones Closures, Accelerating Shift to Twin Peaks

In a decisive restructuring move driven by bankruptcy pressures, FAT Brands Inc. is accelerating the downsizing of its Smokey Bones Bar & Fire Grill chain. Court documents reveal plans to close 14 underperforming Smokey Bones locations across the United States, marking a second major round of cuts since the parent company filed for Chapter 11 protection in late January.

The closures are part of a broader austerity plan filed by FAT Brands and its affiliate, Twin Hospitality, in U.S. Bankruptcy Court. Records accessed via the PACER system show the company also intends to shutter two Johnny Rockets and five Yalla Mediterranean outlets. While official closure dates are not specified, the affected restaurants no longer appear on the company's website, suggesting shutdowns may already be underway.

This latest contraction reduces the Smokey Bones footprint to approximately 20 locations—a stark decline from its peak of roughly 120 restaurants and the 60 it operated when FAT Brands acquired the concept. The brand's struggles are compounded by rising costs for core menu items like steak and brisket, squeezing profitability despite what management has described as otherwise sound operations.

"The Chapter 11 process provides us the opportunity to strengthen our capital structure and ensure our concepts remain competitive," stated FAT Brands CEO Andy Wiederhorn in the initial bankruptcy announcement. The company has emphasized that the restructuring aims to maximize value for stakeholders.

Parallel to the closures, the conversion of Smokey Bones sites into the Twin Peaks sports bar format is yielding tangible results. According to industry reports, two converted locations are now generating average unit volumes of about $7.8 million, more than double the $3.5 million they produced as barbecue restaurants.

"Converting existing Smokey Bones sites cuts nearly eighteen months off development time," explained FAT Brands CFO Ken Kuick. "With similar square footage and location appeal, it's a capital-efficient way to expand our fastest-growing concept."

The strategic shift reflects a harsh calculus in the crowded casual dining sector. As Twin Peaks thrives with its sports-bar model, the more traditional, protein-focused Smokey Bones concept faces mounting headwinds.

Reader Reactions:

Marcus T., former franchisee in Ohio: "This was inevitable. The writing was on the wall when they started the conversions last year. The BBQ space is oversaturated, and with meat costs soaring, the unit economics just don't work for many locations anymore."

Linda R., loyal customer in Tampa: "It's heartbreaking. Our local Smokey Bones was a community spot for years. They closed with zero warning—one day it was there, the next it was just gone. It feels like corporate decided we didn't matter."

David Chen, restaurant industry analyst: "This is a textbook portfolio optimization under financial distress. FAT Brands is channeling limited resources into the concept with the clearest growth trajectory and higher margins. It's a painful but rational response to their debt burden."

Sarah J., hospitality worker in Nevada: "Absolute corporate malpractice. They loaded up on debt buying brands left and right, and now workers and communities pay the price. They're gutting a decent brand to chase the next trendy sports bar fad. It's short-sighted and cruel."

The future of the remaining Smokey Bones locations remains uncertain. While the company has stated support for "profitable locations that will remain," industry observers note that continued pressure from bankruptcy courts and creditors could prompt further consolidation as FAT Brands seeks a viable path out of Chapter 11.