Smokey Bones BBQ shrinks as major closures and conversions reshape the chain
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Smokey Bones Bar and Fire Grill, a casual dining barbecue chain that once operated more than 120 restaurants across the United States, continues to shrink as financial pressures and industry shifts force closures and brand repositioning. The latest round of shutdowns in early 2026 reflects not just local market struggles in individual cities but a broader restructuring under its corporate owners aimed at improving profitability and focusing on stronger performing concepts.
The most recent closures include restaurants in Orlando, Florida, Rockford, Illinois, West Boca Raton, Florida, and Maumee, Ohio, among other locations. These shutdowns follow an earlier round in 2025 in which Smokey Bones permanently shuttered underperforming restaurants and began transitioning others to new concepts.
Smokey Bones origins and peak growth
Smokey Bones opened in Orlando, Florida in 1999 as a casual barbecue and sports bar concept. Over the next decade and a half the chain expanded steadily. At its height, the brand operated over 120 units across much of the U.S., becoming a recognizable name for smoked ribs, grilled meats and full bar service.
In 2023, the brand was acquired by FAT Brands Inc. as part of a multi‑brand portfolio that includes Fatburger, Johnny Rockets and other casual dining chains. Smokey Bones was later spun off into a new entity called Twin Hospitality Group alongside the sports bar chain Twin Peaks. But the momentum that had once propelled the barbecue brand began to stall as shifting consumer dining patterns, rising operating costs and competitive pressures took their toll.
The cycle of closures and conversions
Beginning in 2025, Twin Hospitality identified underperforming Smokey Bones locations for closure and conversion. Initially, the company announced plans to shut around 15 units while converting nearly 19 others into Twin Peaks sports bars. Twin Peaks, known for its higher profit margins and faster return on remodel investments, has outperformed the traditional barbecue concept in recent years.
Conversions have proved financially attractive. Converted locations have seen significant revenue increases, with annual sales more than doubling at some sites compared to their performance as Smokey Bones restaurants. This pivot reflects a strategic choice by leadership to consolidate resources around brands that generate stronger customer demand and higher average unit volumes.
Even with these conversions, Smokey Bones has contracted sharply. As of early 2026 the brand operates only about 31 restaurants, concentrated in eastern states. That is a steep drop from its pre‑acquisition footprint of over 120 and even from the roughly 60 restaurants that were part of FAT Brands’ acquisition package.
Why the barbecue chain struggled
Several factors have contributed to Smokey Bones’ decline. Casual dining chains nationwide have faced headwinds from rising labor and food costs, increasing competition from fast‑casual operators and a broader shift in consumer habits toward takeout and delivery. Barbecue restaurants in particular must manage expensive meats and lengthy cooking processes, which can make their cost structures less resilient during periods of inflation.
In addition, the broader restaurant industry has seen a wave of closures and restructuring at large chains. Peer brands including Denny’s, Red Lobster and TGI Friday’s have also announced multi‑unit closures in recent years as they respond to similar pressures. This context suggests that Smokey Bones is not unique in its contraction but rather part of a larger realignment within casual dining.
Industry analysts have noted that local competition and changing tastes have made it more difficult for national casual dining chains to stand out. In many markets, more diverse food options and niche barbecue smokehouses have attracted customers who previously relied on chains like Smokey Bones for casual group dining outings.
Corporate strategy and future prospects
Under the guidance of Twin Hospitality leadership, Smokey Bones is now part of a portfolio where resource allocation is guided by profitability metrics and brand strength. Twin Peaks, despite its name implying a sports focus rather than barbecue heritage, has emerged as the stronger performer. This has led to ongoing conversions of Smokey Bones sites into Twin Peaks lodges, which are often more cost effective to remodel and deliver greater year‑over‑year sales performance.
The strategic shift also aligns with broader investor expectations for restaurant chains. Brands that can generate higher average unit volumes and demonstrate resilience against market headwinds are more attractive in the current capital environment. For Smokey Bones, this means continued scrutiny of individual location performance and the possibility of more closures or conversions if trends persist.
Despite these challenges, Smokey Bones retains brand equity among diners who appreciate its smoky barbecue menu and casual atmosphere. The challenge for both the brand and its corporate owners will be finding a sustainable path forward that balances tradition with the realities of a changing restaurant sector.
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