Smokey Bones BBQ, once a thriving rival to TGI Fridays, is teetering on the edge of extinction with nine more restaurant closures announced recently.
According to the Daily Mail, this wave of shutdowns slashes the chain’s presence to roughly 45 locations. At the same time, some remaining spots may soon transform into Twin Peaks sports bars under its parent company’s strategy.
Let’s rewind to understand how Smokey Bones got here. Launched in 1999 by Darden Restaurants—known for Olive Garden—the BBQ chain expanded rapidly, peaking at over 130 locations nationwide. It promised “good food, good drinks, and good times,” carving out a loyal following.
In 2007, Darden sold Smokey Bones to Barbeque Integrated, Inc., tied to Sun Capital Partners, Inc., in an $80 million deal. By 2010, the then-68-unit chain underwent a costly redesign across all locations to refresh its appeal. However, financial headwinds loomed as Sun Capital struggled with other failing brands like Friendly’s and Bar Louie, both of which faced bankruptcy filings.
Fast forward to 2023, and Smokey Bones was sold again—this time to Fat Brands for $30 million. The new owners inherited a chain already battered by market shifts and internal challenges. The situation worsened after Fat Brands acquired Twin Peaks in 2021, a move that seemed to divert focus from Smokey Bones. Since then, the BBQ chain has struggled to maintain its identity and profitability.
Now, with nine more closures, Smokey Bones’ footprint is shrinking fast. Some locations are slated for conversion into Twin Peaks venues, a sports bar concept that Fat Brands appears to prioritize. A spokesperson noted, “We still plan to convert about half of Smokey Bones’ locations.”
They added clarity on the closures, stating the reasons include expiring leases and weak trade areas. This strategic pivot raises questions about the future of the Smokey Bones brand itself.
Despite the downturn, Fat Brands insists on optimism. Another spokesperson emphasized their dedication, saying they’re “committed to growing Smokey Bones” as the only BBQ concept in their portfolio. But with a 6.5% revenue drop in the first quarter, skepticism lingers.
Smokey Bones isn’t alone in its struggles—rival TGI Fridays has been on a downward spiral too, filing for bankruptcy last year. With only 200 U.S. locations left after mass closures, Fridays serves as a cautionary tale of casual dining’s fragility.
The broader restaurant industry reflects similar pain. Chains like Hooters, which shuttered 30 locations this month after bankruptcy protection, and others like Planta and On The Border, are grappling with survival. Even Darden has closed 15 Bahama Breeze spots due to poor profits.
Amid these closures, odd glimmers of hope appear—Hogan’s Real American Beer has reportedly eyed Hooters’ intellectual property. But such moves do little to stem the tide of decline across once-thriving brands.
For financially savvy readers, this trend signals a brutal reality: Casual dining is a risky bet in today’s economy. Over-leveraged chains and shifting consumer habits are crushing even established names. Investors might look to short struggling restaurant stocks or pivot to more resilient sectors like fast-casual or tech-driven food delivery.
Diners, meanwhile, face fewer choices as beloved spots vanish. Smokey Bones’ promise of “good times” feels hollow when doors keep closing. If you’re near a remaining location, enjoy it while it lasts—conversion or closure may be imminent.
Ultimately, the free market is doing its work, weeding out inefficiency. Fat Brands’ focus on Twin Peaks over Smokey Bones reflects a hard-nosed pivot to what sells. For wealth-builders, the lesson is clear: adapt fast, cut losses, and invest where consumer dollars flow—because nostalgia won’t pay the bills.