A growing number of restaurant brands owned by FAT Brands could face uncertain futures following the company’s Chapter 11 bankruptcy filing earlier this year, especially after the abrupt collapse of Smokey Bones in April.
Bankruptcy raises concerns across portfolio
FAT Brands, which owns more than a dozen restaurant concepts including Fatburger, Johnny Rockets, Round Table Pizza, Fazoli’s, Twin Peaks, and Great American Cookies, filed for Chapter 11 bankruptcy protection on Jan. 26, 2026. The company cited roughly $1.4 billion in debt.
Executives said at the time that restaurants would continue operating during restructuring efforts, but analysts warned that weaker brands within the portfolio could eventually face closures, sales, or major downsizing.
Court filings in March showed the company was exploring asset sales and negotiations with creditors as financial pressures intensified.
Smokey Bones shuts down nationwide
The biggest warning sign so far came from Smokey Bones.
In early 2026, FAT Brands announced plans to close 15 underperforming Smokey Bones restaurants while converting select locations into Twin Peaks sports bars. But the situation escalated rapidly in late April.
In late April 2026, all remaining Smokey Bones locations abruptly shut down nationwide, ending the chain’s decades-long run. Restaurants in states including Pennsylvania, Ohio, Illinois, Michigan, New York, and Florida closed with little notice to customers and employees.
At its peak, Smokey Bones operated nearly 130 locations across the U.S. before shrinking dramatically over the past several years prior to the complete exit of the chain nationwide.
Which brands could face pressure next?
Industry analysts say smaller or slower-growing concepts within the FAT Brands portfolio could face increased scrutiny during bankruptcy proceedings.
Johnny Rockets has steadily reduced its U.S. footprint over the past decade, while casual dining chains like Fazoli’s and Round Table Pizza continue facing intense competition and rising operating costs.
Franchise disputes have also emerged in recent months. In May 2026, several Great American Cookies franchisees accused FAT Brands of unfair supply pricing and financial mismanagement during the bankruptcy process.
While FAT Brands has not announced additional nationwide closures, restructuring efforts are expected to continue throughout 2026.
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