Subway closed more locations in 2024, continuing years of US decline
More than 600 Subway sandwich restaurants closed in 2024, continuing a decline that has now persisted for almost a decade.
Scripps News
- FAT Brands, owner of Smokey Bones, is converting roughly half of its locations into Twin Peaks restaurants.
- The move aims to capitalize on the higher profitability of Twin Peaks, a sports bar similar to Hooters.
- Nine underperforming Smokey Bones locations will close, while 30 will be rebranded.
FAT Brands Inc., the global company behind dozens of iconic food chains like Fazoli’s and Fatburger, is shifting business models for Smokey Bones, a barbecue favorite with locations all across the country.
Here’s what you need to know.
What will the rebranding be?
Under the new company, underperforming locations will close, and half of all Smokey Bones will be transitioned into a whole new restaurant: Twin Peaks.
When did FAT Brands buy Smokey Bones?
With over 2,300 franchise stores across 40 countries, FAT Brands purchased the barbecue bar and grill for $30 million from Sun Capital Partners private equity in 2023. Right at the start of 2025, FAT Brands created Twin Hospitality Group, the operating unit for its Twin Peaks and Smokey Bones brands. Proceeds from the IPO will help pay down debt at the parent company, which owns 95% of Twin Hospitality shares. In return, the sports bars will focus on opening more locations with the funding received.
Filling a void
Twin Peaks is a growing brand in the United States, filling a niche left by the gone-with-the-wind Hooters.
“Converting Smokey Bones locations to Twin Peaks provides a significant return on investment as altering a standing restaurant with similar square footage and real estate draw like Smokey Bones cuts out about a year and a half of construction time,” Ken Kuick, FAT Brands co-CEO and chief financial officer, said in a statement. “Twin Peaks is our fastest-growing concept, producing strong and growing average-unit volumes.”
According to statistics from a 2024 earnings call, Twin Peak’s profits were four times higher in margins compared to the barbeque joint, causing a split in shifting the underperforming locations to more profits.
How many locations will close?
The company announced in March nine underperforming locations would close. Those locations have not been announced.
How many locations will be rebranded?
With nine restaurants closing, it leaves 45 stores available to be rebranded. Of the 45, 30 of the Smokey Bones restaurants will be rebranded over time, the company said in an initial statement.
Out of 54 locations, nine will close. The 45 will then be reduced again, as 30 of the remaining will be rebranded to Twin Peaks restaurants over time, the company said in an initial statement. The first Smokey Bones to transition was the location in Lakeland, Florida in late 2024 according to reporting from National Restaurant News.
How many Smokey Bones locations will be left?
In the end, Smokey Bones will downsize to just 15 locations left. At the brand’s highest point, Smokey Bones had over 100 locations nationwide. The company has yet to reveal which Smokey Bones locations will close or convert to the Twin Peaks brand.
What is Twin Peaks?
Twin Peaks is similar to Hooters. Restaurants offer cold drinks, American meals and large portions.
Think of a casual sports bar with… Twin Peaks on display. Following in the same vein as Hooters’ popularity in the 90’s and 2000’s, the dining spot offers cold drinks, American meals and large portions. According to the Twin Peaks location tracker, there are 109 locations across the United States. The company plans in the short term to open at least 11 new locations by the end of 2025, and cap at 650 locations across the U.S. in the distant future.
Which location is the next to close?
It appears that communication has been limited regarding which location is the next on the chopping block. Even employees at several locations seem to be left in the dark.
“When (Fat Brands) first bought us they sent out a handful of people to check out our restaurant and were in and out within five to ten minutes,” an employee said at the Springfield, Illinois location. “That was well over half a year ago, and we haven’t heard anything since.”
Calls to confirm the status of the restaurant to the general manager were not responded to as of June 25.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at CLGrant@gannett.com; and on X (Formerly known as Twitter): @Claire_Granted
