Apparently diners like breasts more than ribs. At least, that’s what Twin Hospitality Group seems to think, as it grows its Twin Peaks brand while shrinking its Smokey Bones BBQ locations.
That appears to be the logic behind the recent decisions Twin Hospitality Group has made around its restaurant brand. The company operates Twin Peaks, a sports bar/breastaurant concept where the waitresses wear short skirts, low-cut tops, and push-up bras.
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Cleavage is on the menu, along with slight twists on the classic sports bar menu like “Millionaire Bacon,” a high-end cut of bacon served as an appetizer.
The company also owns a more traditional barbecue concept Smokey Bones, where the waitstaff generally operates fully clothed.
Smokey Bones was acquired as a 60-unit concept 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 third conversion, being completed by a franchisee, is currently under construction and expected to open later this year.
That news became public last year, but now Twin Hospitality is shrinking the Smokey Bones brand even further.
Image source: Pixabay
Fifteen more Smokey Bones locations are closing
Twin Hospitality has identified 15 underperforming Smokey Bones locations, of which 10 have been closed and five will be closed before the end of the fiscal third quarter.
The closure of these locations, coupled with the removal of approximately $1.5 million in associated corporate overhead, is projected to materially enhance EBITDA performance.
Twin Hospitality Group CEO Kim Boeremea tried to explain the decision.
“Smokey Bones is a beloved brand that has amassed a loyal following over the years,” she said.
That, however, is not enough to save the brand.
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“Since joining Twin Hospitality, we have launched a full spending review across both brands to eliminate inefficiencies, uncover synergies, and refocus on high-return initiatives. I have also focused on reviewing the Smokey Bones portfolio, closing underperforming units, identifying strong candidates for conversion, and supporting profitable locations that will remain 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 on
While 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
- Total revenue: $87.1 million, down 5.4% year-over-year
- Net loss: $12.1 million, compared to $9.2 million last year
- Adjusted EBITDA: $5.1 million, down from $7.1 million
- Twin Peaks Adjusted EBITDA: $6.3 million, decreased from $7 million
Source: Earnings call transcript
Twin Peaks has growth plans
“Currently, we have two Smokey Bones conversions under construction consisting of a company-owned lodge in Kissimmee, Florida, and a franchise location in Fayetteville, North Carolina. And looking ahead to early 2026, we will enhance our presence in Florida with an additional company-owned conversion in Citrus Park,” Interim CEO Ken Kuick said during the Q2 earnings call.
Any new expansion, he noted, would be mostly on a franchised basis.
“Our expansion strategy is fueled by a pipeline of 100 franchise agreements, with current franchisees accounting for approximately 75% of this projected growth, and we continue to strengthen this pipeline. For example, we kicked off 2025 with a strategic five-unit development deal that will introduce our brand to the untapped markets of South Dakota and Montana,” he added.
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