Twin Hospitality Group Closes 15 Smokey Bones Locations Amid Brand Shrinkage

Twin Hospitality Group is closing 15 underperforming Smokey Bones BBQ locations, citing a focus on high-return initiatives and eliminating inefficiencies. The closures are expected to enhance EBITDA performance. The company will continue to operate the remaining Smokey Bones locations and convert some to its Twin Peaks brand, which has a higher average unit volume. Twin Hospitality Group CEO Kim Boeremea stated that the decision was made to optimize the Smokey Bones footprint and focus on profitable locations.

Twin Hospitality Group, the parent company of Smokey Bones, has announced the closure of 15 underperforming Smokey Bones BBQ locations, as part of a strategic review aimed at optimizing the brand's footprint and enhancing EBITDA performance. The decision was announced on September 2, 2025, with the first 10 units already shuttered and the remaining five set to close by the end of the third quarter [1].

The closures are part of a broader initiative to convert 19 Smokey Bones units into higher-performing Twin Peaks restaurants. Two of these conversions have already been completed, generating average unit volumes of approximately $7.8 million compared to the $3.5 million they generated as Smokey Bones. A third conversion is expected to open later this year [1].

The move is expected to materially enhance EBITDA performance, as the closure of these locations, along with the removal of approximately $1.5 million in associated corporate overhead, will improve the company's financial health [1]. The remaining 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 average unit volumes ranging from $1.3 million to $7.1 million [1].

Twin Hospitality Group CEO Kim Boerema stated that the decision was made to focus on profitable locations and eliminate inefficiencies. 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 [1].

In addition to the strategic update, the company announced the appointment of Ken Brendemihl as President of Smokey Bones. Brendemihl has over 25 years of restaurant leadership experience and most recently served as Chief Operating Officer of Alamo Drafthouse. He will bring his deep operational expertise and proven track record to lead Smokey Bones into its next chapter [3].

The closures and conversions are part of a broader effort to optimize the Smokey Bones footprint and focus on high-return initiatives, with a goal of enhancing the brand's overall performance and profitability.

References:
[1] https://www.restaurantdive.com/news/twin-hospitality-closes-15-smokey-bones/758968/
[2] https://www.marketscreener.com/news/twin-hospitality-group-inc-announces-new-leadership-and-strategic-update-for-smokey-bones-ce7d59dad988f12c
[3] https://www.morningstar.com/news/globe-newswire/9521645/twin-hospitality-group-inc-announces-new-leadership-and-strategic-update-for-smokey-bones