Barbecue chain exits New York as bankruptcy drives closures

A national restaurant chain is continuing to shrink its footprint as financial challenges reshape its operations. The latest closure in New York underscores the broader impact of bankruptcy-driven cuts across the casual dining industry.

Buffalo-area restaurant shutters

A Smokey Bones location in Cheektowaga, part of the Buffalo metropolitan area, has closed as the company reduces its number of underperforming restaurants. The closure leaves New York without any remaining locations of the barbecue chain, marking a full exit from the state.

The Cheektowaga restaurant had been the state’s only Smokey Bones location for years, but ultimately became one of several sites impacted by the company’s nationwide downsizing efforts. Its closure reflects a continued pullback from northern markets where performance has lagged.

Bankruptcy drives restructuring

The shutdown comes after parent company FAT Brands filed for Chapter 11 bankruptcy protection in January 2026. The filing was intended to help restructure debt while allowing the company to continue operating its portfolio of restaurant brands.

As part of the process, locations that failed to meet profitability targets have been closed or identified for potential lease rejection. Smokey Bones has been among the hardest-hit brands in the portfolio, with multiple closures confirmed across several states.

Shrinking national footprint

Once a much larger chain with more than 100 locations nationwide, Smokey Bones has seen its presence significantly reduced over time. The brand now operates only a fraction of its former restaurant count, with remaining locations concentrated primarily in select eastern and southern markets.

In some cases, former restaurants have been converted into other concepts owned by FAT Brands, including Twin Peaks, which executives believe offers stronger growth potential.

Industry pressures continue

The New York closure highlights broader challenges facing casual dining chains across the board. Rising operating costs, increased competition, and shifting consumer preferences toward takeout and fast-casual options have all contributed to declining performance across the sector.

As restructuring efforts continue, additional closures could follow, signaling ongoing uncertainty for the brand’s future.

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