Fat Brands has become a shockingly large restaurant operator despite owning numbers brands with names that sound like eateries in a “Simpsons” episode or a Kevin Smith movie.

The company started with Fatburger in 2003 before buying the also pretty literally named Buffalo’s Cafe in 2011. From the burger and wing chain, it added the iconic (and perhaps outdated) Ponderosa and Bonanza Steakhouse chains in 2017, then added another wings concept, Hurricane Wings and Grill, in 2018.

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Over the next few years the company bought Elevation Burger, Johnny Rockets, and Global Franchise Group which includes many names that don’t sound real including Round Table Pizza, Great American Cookies, Marble Slab Creamery, Pretzlemaker, and Hot Dog on a Stick.

That last deal gave Fat Brands a massive presence in malls.

In 2021, however, the company entered that fast-casual space with purchase of Twin Peaks, a bar and restaurant chain that sort of a classier take on the model pioneered by Hooters. The company also picked up the Smokey Bones barbecue chain in 2023 from Darden Brands and, at the time, it was excited about the deal.

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“We continue to be selective and opportunistic in our acquisition strategy, targeting brands that are both scalable and synergistic with our existing platform,” said Rob Rosen, Co-CEO of Fat Brands said at the time. “We are pleased to add another polished dining brand, which will provide more options for our sales team to offer our franchise partners to further their new unit development.”

Most of the Fat Brands portfolio is very casual.

Image source: Shutterstock

Fat Brands mostly gives up on Smokey Bones

While the Fat Brands and Smokey Bones relationship started well, it took a turn for the worse earlier this year. The barbecue chain’s owner shared some bad news for fans of the casual, sit-down barbecue brand.

Fat Brands Chairman Andy Wiederhorn explained that the company often buys brands to use them to enhance a company they already own. 

“Our recent transactions have been highly strategic, creating multiple avenues for value creation. A prime example is our acquisition of Nestle Toll House Cafe by Chip about three years ago. This transaction was particularly compelling as it allowed us to convert these units to Great American Cookies locations, effectively growing our cookie footprint while simultaneously increasing production volume at our manufacturing facility,” he said during the company’s fourth-quarter earnings call.

Wiederhorn views the Smokey Bones acquisition as a similar opportunity although that was not mentioned when the brand was purchased in 2023.

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“We bought Smokey Bones in late 2023 to help fuel Twin Peaks’ growth, which will allow us to convert about 30 of the Smokey Bones locations into Twin Peaks. This dual benefit illustrates our approach to acquisitions. We look for opportunities that not only expand our restaurant portfolio, but also drive incremental value through our manufacturing capabilities, essentially getting two bites at the apple,” 

Fat Brands also shared during its earnings call that 30 of the remaining 58 Smokey Bones locations will be rebranded as Twin Peaks. Another nine Smokey Bones locations will close. 

Fat Brands spins off Twin Peaks

While Fat Brands will maintain a roughly 85% stake in the new company, it has actually spun off Twin Peaks and the remains of the Smokey Bones chain into its own company.

“Twin Hospitality now trades separately on the NASDAQ under the ticker TWNP. The public listing of Twin Hospitality creates an opportunity for shareholders to directly participate in the growth and success of the Twin Peaks brand. This strategic move enhances transparency and enables the market to better appreciate the distinct value of Twin Peaks,” Wiederhorn said. 

Twin Peaks is a sports bar/breastaurant model where the waitresses wear low-cut outfits. 

The new company’s executives also commented on the Smokey Bones conversions.

“Our flexible real estate model has proven highly successful in converting legacy restaurants into Twin Peaks. These conversions enable faster time to market, lower buildout costs and accelerated return on investment,” said CFO Ken Kuick.. 

Some of the conversions have already come online.

“We have also made progress with our strategic plans to convert Smokey Bones into Twin Peaks. Our first Twin Peaks conversion, which opened in Lakeland, Florida last September, is exceeding expectations, while our second Twin Peaks conversion in Brandon, Florida opened this month and is off to a strong start. We project completing two additional conversions in 2025.”

Related: Popular BBQ chain closes almost all locations, no bankruptcy

That means that Smokey Bones fans still have time to enjoy a 1-pound slab of ribs or some of the chain’s other favorites.

Most of the nine locations that are fully closing have already been closed. 

One location, which closed in late-April in order to become a Twin Peaks, reminded customers to use any Smokey Bones coupons before their local location shut down.