BBQ chain closes half its restaurants, files Chapter 11 bankruptcy
Ray Ray's Hog Pit, a popular Ohio-based BBQ chain, has filed for Chapter 11 bankruptcy after closing nearly half its locations amid skyrocketing meat prices and persistent industry headwinds. The regional favorite, known for its award-winning ribs and Ohio-style barbecue, announced the closures of three outlets in November 2025, leaving just four operational sites as it restructures debts exceeding $1.26 million. This move reflects broader 2025 struggles for casual dining, where beef costs surged 13-17% year-over-year, squeezing margins for meat-heavy menus.
Closure Details
The chain shuttered its Johnstown, Marion, and Linworth food truck locations on November 12, 2025, citing a need to "focus on the locations thriving and serving the people who love it most." From a peak of seven spots, Ray Ray's now operates only in Clintonville, Franklinton West, and Granville, with the parent Smoke Ring LLC filing Chapter 11 on December 19. Assets stand at $264,000 against liabilities over $1 million, allowing debtor-in-possession status to keep doors open during reorganization.
Causes of the Downfall
Beef prices hit record highs due to cattle shortages and import limits, forcing BBQ joints to hike menus or shrink portions—driving diners to cheaper chicken or pork options. Labor shortages, 3%+ inflation, and post-pandemic habits favoring takeout over dine-in compounded woes, with full-service closures up 10% industry-wide. Ray Ray's, which started as a food truck, expanded too aggressively without buffers against these shocks.
Industry Context
2025 marks a brutal year for restaurants: Sticky Fingers BBQ filed Chapter 11 in March, Burnt BBQ & Tacos in July, and Dickey's Barbecue Pit franchisees hit Chapter 7. Chains like Red Lobster, TGI Fridays, and Bravo/Brio also restructured, closing hundreds of units amid 348 bankruptcy-related shutdowns in 2024 alone. BBQ suffers uniquely from protein costs, with analysts predicting more fallout into 2026 unless relief arrives.
Path Forward
Chapter 11 offers hope—Planet Hollywood survived three filings, and Red Lobster reemerged stronger. Ray Ray's could emerge leaner, perhaps franchising survivors or pivoting to ghost kitchens. Loyal fans rally on social media, but success hinges on cost cuts and menu innovation like plant-based alternatives. Creditors hold sway, with no funds for unsecured payouts post-admin costs.
Lessons for Diners and Operators
Support locals by choosing survivors, but expect 5-10% price hikes. Chains must diversify proteins and embrace delivery apps. For BBQ lovers, this underscores vulnerability—grab ribs from independents while they last, as consolidation favors giants like Texas Roadhouse.
Ray Ray's Hog Pit's Chapter 11 filing intensifies scrutiny on the BBQ sector's fragility, as the chain's aggressive expansion from food truck origins clashed with unrelenting cost pressures and shifting consumer behaviors in 2025. Creditors now scrutinize $1.26 million in debts tied to leases, vendors, and loans, while the remaining four locations fight to prove viability amid fan support campaigns. This case exemplifies how regional gems crumble without scalable models, urging survivors to adapt swiftly.
Financial Deep Dive
Court documents reveal secured debts to Ohio banks exceeding $800,000, unsecured vendor claims at $400,000+, and minimal cash reserves post-closures. November's shutdowns stemmed from $50,000 monthly rent bleed across underperformers, exacerbated by 17% brisket price jumps since summer. Sales dipped 25% post-pandemic as families cut dine-in, favoring DoorDash—revenue per location now hovers at $750,000 annually, barely covering $650,000 costs.
Customer and Community Fallout
Loyalists mourn shuttered spots like Johnstown's drive-thru staple, flooding social media with #SaveRayRays pleas and GoFundMe drives topping $15,000. Employees face layoffs—30 jobs lost—highlighting hospitality's churn, with 1.5 million roles vanished industry-wide this year. Remaining outlets report 20% traffic boosts from publicity, slinging pulled pork and burnt ends to capacity crowds.
Strategic Restructuring Options
Under Chapter 11, expect lease rejections for money-losers, supplier renegotiations slashing 15-20% costs, and potential asset sales like branded smokers or recipes. Franchising the Granville flagship could spawn revivals, mirroring Dickey's Pit recoveries. Menu tweaks—more chicken, turkey, or veggie sides—counter beef woes, while loyalty apps drive repeat business amid 40% dine-in drop.
Broader BBQ Shakeout
Sticky Fingers closed 10 units pre-filing; Burnt BBQ liquidated entirely. Dickey's franchises shed 50 spots via auctions. Survivors like Joe's Kansas City thrive via takeout pivots and merch empires. Analysts forecast 15% more BBQ bankruptcies in 2026 unless cattle herds rebound, pushing chains toward hybrid models blending QSR speed with smokehouse flavor.
Investor and Revival Plays
Distressed buyers eye prime real estate; private equity scooped Red Lobster sites cheap. Fans speculate celebrity rescues akin to Guy Fieri's past interventions. Ray Ray's founder hints at phoenix rising "smokier and stronger," but unsecured creditors risk zero recovery. Watch Q1 2026 hearings for emergence plan—success means Ohio BBQ renaissance, failure spells full liquidation.
