Casual restaurant chains have faced economic challenges in recent years that have taken a huge bite out of revenues.
Those financial issues include rising labor and product costs driven by high inflation, rising interest rates that have raised the cost of their debt, and consumers pulling back on discretionary spending and not dining out as much.
Many chains have closed underperforming locations and sold assets. In some cases, they have even filed for Chapter 11 bankruptcy to restructure debt and reorganize their businesses.
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The most prominent casual chains to file for Chapter 11 bankruptcy in the last year included Red Lobster, which filed in May 2024; TGI Friday’s, filing in November 2024; Tijuana Flats, filing in April 2024; Rubio’s Coastal Grill, filing in June 2024; and Italian chain Buca di Beppo, filing in August 2024.
All of those restaurant chains were forced to close restaurant locations and, in most cases, they sold their assets in the bankruptcy process.
The barbecue restaurant segment of the casual restaurant sector has been well-represented among struggling dining chains.
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The Dickey’s Barbecue Restaurants chain has not filed for bankruptcy, but the company’s franchisee Smokin’ Dutchman Holdings, which operated four Michigan Dickey’s locations, filed for Chapter 11 protection in September 2024, blaming its financial difficulties on Dickey’s for allegedly imposing extreme and unreasonable demands on the debtor’s resources.
Another barbecue chain, South Carolina-based Sticky Fingers Restaurants LLC, filed for Chapter 11 bankruptcy to reorganize its business on March 1.
The barbecue dining chain operates four Sticky Fingers Rib House locations in Greenville, North Charleston, and Summerville, S.C., and Chattanooga, Tenn. The dining company is not affiliated with the Sticky’s Finger Joint chicken fingers chain that filed for Chapter 11 bankruptcy in April 2024.
Smokey Bones Bar & Fire Grill is closing several locations.
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Smokey Bones closing locations
And now the parent company of Smokey Bones Bar & Fire Grill plans to close nine underperforming locations in 2025. It will also convert about half of its current locations to Twin Peaks restaurants, Restaurant Business reported.
Related: Popular barbecue restaurant chain files for Chapter 11 bankruptcy
Fat Brands (FAT) said in its fourth quarter earnings call that it would convert 30 of its 58 Smokey Bones restaurants to Twin Peaks locations as part of its conversion strategy that it revealed after acquiring the 61-unit Smokey Bones chain in September 2023.
Two other Smokey Bones locations have already been converted to Twin Peaks locations, Twin Peaks offers a sports-bar format. One Smokey Bones restaurant was closed.
Fat Brands spun off the two restaurant chains into a new affiliate, Twin Hospitality Group (TWNP) on Jan. 30.
The Beverly Hills-based company said in its earnings call that it is targeting 30 Smokey Bones conversions to Twin Peaks in 2025 and 2026, but there’s a chance it could convert more of the remaining 19 locations to Twin Peaks.
The company converted its first Smokey Bones to Twin Peaks in Lakeland, Fla., in September 2024, and opened its second converted location in Brandon, Fla., in February 2025.
Twin Peaks opened nine new restaurants in 2024 and plans to open nine to 11 new locations in 2025, according to a statement on its fourth quarter results.
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