2025 BBQ Chain Bankruptcies Skyrocket as Beef Prices Hit All-Time High

A major Ohio barbecue chain has filed for bankruptcy. Ray Ray’s Hog Pit entered Chapter 11 protection in late December 2025. It is the latest casualty in a brutal year for smokehouse restaurants.

The filing highlights an industry-wide crisis. Soaring meat costs and a historic cattle shortage are pushing beloved BBQ brands to the brink. According to U.S. Bankruptcy Court records, the chain’s parent company listed liabilities up to $10 million.

Ray Ray’s Hog Pit Buckles Under Financial Strain

Smoke Ring, LLC filed its voluntary petition on December 19. The operator of Ray Ray’s Hog Pit and related brands sought reorganization in Ohio. The company reported assets and liabilities each between $1 million and $10 million.

This followed the pre-bankruptcy closure of three outlets. The Johnstown and Marion locations shut down in mid-November. A popular food truck in Linworth also ceased operations the same month.

Four central Ohio locations continue to operate for now. These include the original Clintonville spot plus sites in Franklinton, Westerville, and Granville. The company must submit a reorganization plan by March 2026.

Historic Cattle Shortage Fuels Unprecedented Costs

The core problem is a severe shortage of beef. The U.S. cattle herd is at its smallest size since 1951. Prolonged droughts reduced herds, creating a supply crunch.

This drove consumer prices to painful new heights. Ground beef was 13% more expensive in August 2025 than a year prior. Steak prices surged even higher, climbing 16.6% over the same period.

Data from the Bureau of Labor Statistics confirms the drastic inflation. The UN’s Food and Agriculture Organization meat price index also hit a record high of 127.3 points in July 2025. Industry executives warn the worst may still be ahead for restaurants.

A Sector-Wide Collapse Takes Shape

Ray Ray’s is far from alone in its struggle. Several other barbecue concepts collapsed under similar pressures in 2025. This signals a systemic failure within the niche.

Sticky Fingers Restaurants, a established southeastern chain, filed for Chapter 11 in March. Burnt BBQ & Tacos in Texas filed for a smaller Subchapter V bankruptcy in July. A Michigan franchisee operating four Dickey’s Barbecue Pit locations also sought protection.

These chains share a critical vulnerability. Their menus are built almost entirely around beef and pork. They cannot easily pivot to cheaper ingredients like pizza or salad chains can. Their business models are exceptionally exposed to protein inflation.

The wave of BBQ chain bankruptcies underscores a fragile new reality for full-service dining. With experts predicting high beef prices into 2027, more beloved local brands may face extinction unless they find innovative ways to adapt.

Info at your fingertips

What is Chapter 11 bankruptcy?

Chapter 11 is a form of bankruptcy that allows a business to reorganize its debts. The company continues operating while it works on a court-approved plan to pay creditors over time. The goal is to keep the business alive.

Why are beef prices so high right now?

A multi-year drought sharply reduced the size of the U.S. cattle herd. With fewer animals available, supply cannot meet demand. This basic shortage, compounded by high feed and fuel costs, has pushed retail prices to record levels.

Which other BBQ chains filed for bankruptcy in 2025?

Major filings included Sticky Fingers Restaurants and Burnt BBQ & Tacos. A Dickey’s Barbecue Pit franchisee in Michigan also filed. Each cited unsustainable meat costs as a primary factor in their financial distress.

When will beef prices go down?

Most industry analysts do not expect meaningful relief until 2027 at the earliest. Rebuilding a cattle herd is a slow, multi-year process. Some warn prices could continue rising before they eventually stabilize.

Are all four remaining Ray Ray’s locations staying open?

For now, the Clintonville, Franklinton, Westerville, and Granville locations continue normal operations. Their future will depend on the success of the company’s Chapter 11 reorganization plan submitted to the bankruptcy court.

Trusted Sources: TheStreet, Bureau of Labor Statistics, U.S. Bankruptcy Court for the Southern District of Ohio, FAO Meat Price Index.