Struggling BBQ restaurant chain closing another 15 | Global Market News
Apparently diners like breasts more than ribs. At least, that’s what Twin Hospitality Group appears to suppose, because it grows its Twin Peaks model whereas shrinking its Smokey Bones BBQ places.That no less than appears to be the logic behind the current choices Twin Hospitality Group has made round its restaurant model. The company operates Twin Peaks a sports activities bar/breastaurant idea the place the waitresses put on short skirts, low-cut tops, and push up bras.Cleavage is on the menu together with slight twists on the basic sports activities bar menu like “Millionaire Bacon,” a high-end cut of bacon served as an appetizer. The company additionally owns a more conventional barbecue idea Smokey Bones, the place the waitstaff usually operates totally clothed.Smokey Bones was acquired as a 60-unit idea by FAT Brands Inc. in 2023 and was subsequently spun off into Twin Hospitality in January 2025. “Twin Hospitality has prioritized optimizing Smokey Bones’ footprint, identifying 19 restaurants for conversion into better-performing Twin Peaks lodges. Two of these conversions have already been completed and generate significantly higher average unit volumes (AUVs) of approximately $7.8 million, compared to approximately $3.5 million as Smokey Bones,” the company shared in a press release. A 3rd conversion, being accomplished by a franchisee, is at the moment beneath construction and is predicted to open later this yr.That news turned public final yr, however now Twin Hospitality is shrinking the Smokey Bones model even additional.
Smokey bones has a quantity of steaks on the menu.Image source: Pixabay.
15 more Smokey Bones are closingTwin Hospitality has recognized 15 underperforming Smokey Bones places, of which ten have been closed and 5 can be closed earlier than the top of the fiscal third quarter. The closure of these places, coupled with the elimination of roughly $1.5 million in related company overhead, is projected to materially improve EBITDA efficiency.Twin Hospitality Group CEO Kim Boeremea tried to elucidate the choice.“Smokey Bones is a beloved model that has amassed a loyal following through the years,” she said.That, however is not enough to save the brand.”Since becoming a member of Twin Hospitality, we’ve launched a full spending review throughout each manufacturers to get rid of inefficiencies, uncover synergies, and refocus on high-return initiatives. I’ve additionally targeted on reviewing the Smokey Bones portfolio, closing underperforming items, figuring out sturdy candidates for conversion, and supporting profitable places that may stay Smokey Bones,” she added.The brand, while it has been more than shrunk by half, will continue under the leadership of Ken Brendemihl who has been named President of Smokey Bones.Brendemihl has over 25 years of restaurant leadership experience, most recently as Chief Operating Officer of Alamo Drafthouse. Prior to that, he held key leadership roles at Velvet Taco, California Pizza Kitchen, Texas Roadhouse, and On the Border.Smokey Bones will live onWhile it will only be a 26 restaurant chain, Smokey Bones has not been fully replaced by its more controversial sister chain. The company did share some positive numbers about the surviving locations for the BBQ chain.The remaining portfolio of 26 Smokey Bones locations are generating positive cash flow and contributed approximately $3.0 million to total EBITDA on a trailing 12-month basis, with AUVs ranging from $1.3 to $7.1 million and healthy unit-level margins. Looking ahead, the company will leverage FAT Brands’ proven franchise model to begin franchising a portion of the remaining Smokey Bones locations, creating a more balanced corporate-to-franchise mix and unlocking additional growth potential for the brand.And while it does not have barely-dressed servers, Smokey Bones will live to sell more of its famed 1 lb. rack of ribs. It’s also a restaurant that generally stays open until 2 a.m. serving the late-night crowd.Twin Hospitality struggled in Q1
Source: Earnings call transcriptTwin Peaks has growth plans”Currently, we’ve two Smokey Bones conversions beneath construction consisting of a company owned lodge in Kissimmee, Florida and a franchise location in Fayetteville, North Carolina. And looking forward to early twenty twenty six, we are going to improve our presence in Florida with an further company owned conversion in Citrus Park,” Interim CEO Ken Gueck said during the Q2 earnings call.Any new expansion, he noted, would be mostly on a franchised basis.”Our enlargement strategy is fueled by a pipeline of 100 franchise agreements with present franchisees accounting for about 75% of this projected growth, and we proceed to strengthen this pipeline. For instance, we kicked off 2025 with a strategic 5 unit development deal that may introduce our model to the untapped markets of South Dakota and Montana,” he added.
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