SPRING TWP., Pa. – It’s time to say goodbye to another staple in Berks County. Smokey Bones announced it is closing its doors — this, after the chain’s parent company, FAT Brands, filed for bankruptcy in January.
It’s one of the most challenging businesses.
“Opening a restaurant, and keeping a restaurant to have it sustainable is extremely difficult to do,” said Michael Simon, accounting associate teaching professor at Penn State Berks.
One by one, staple restaurants in Berks County have closed their doors.
“Buca di Beppo. You know, they filed for bankruptcy. Red Lobster has filed for bankruptcy. Carl’s Jr.,” Simon said. “And these are organizations that aren’t just here locally. These organizations across the country.”
Now, another one on the list is Smokey Bones.
“From time to time, you’re going to see these different restaurant organizations are going to be a little bit more strategic, taking a look at the profitability of each one,” Simon said.
The chain has shut down several locations, including one in Spring Township.
“If the economy continues the way it is, you wind up seeing, rising fuel costs. Those rising fuel costs get passed on to the restaurant chain, so they’re paying more for their food and beverage,” Simon said.
The closures also take away several jobs, with wages and tips.
“It’s really a shame for the folks that are employees,” Simon said. “And for folks that are just looking for part-time employment, that’s one of the greatest ways to go is restaurant organizations.”
In this economy, restaurants face a hurdle.
“The other part, really, is you see a lot of market saturation when it comes to the restaurants,” Simon said. “Right now, there’s so many different restaurant chains, and they keep adding to them, and the area can only handle so many.”
And as new restaurants open up, there are other challenges.
“Considering competition, the new restaurants that wind up opening, they really need to have either something that’s unique, that’s going to separate them from the herd, or they will be in trouble in a relatively short period of time,” Simon said.