A Midwest Barbecue Chain Is Now Filing For Bankruptcy After Recent Closures

The hits just keep on coming for the restaurant industry in 2025 with news that Ray Ray's Hog Pit has filed for Chapter 11 bankruptcy. The Ohio-based barbecue chain started as a food truck and then expanded to brick and mortar, growing to seven locations at its peak. However, by November 2025, the company announced that it would be closing three of its restaurants. At the time, the chain said in an official statement on Facebook that they were going to refocus on "serving award-winning BBQ quickly to the people who love it most." Unfortunately now, barely a month later, more drastic measures are being taken.  

Though this news isn't great for the chain, it doesn't necessarily mean that they're going out of business. Chapter 11 bankruptcy is specifically designed to allow debt restructuring while the business remains in operation. In filing the paperwork, Ray Ray's parent company reported $264,349 in assets and $1.26 million in liabilities. There is potential for the company to make the necessary adjustments and successfully reorganize. Planet Hollywood has survived three bankruptcy filings, and Red Lobster's newest CEO managed to rescue it from bankruptcy and is doing well. Hope still remains.

Two of the four remaining Ray Ray's locations feature dine-in options. One location has a drive-thru and walk-up window, while the fourth is walk-up only. The company's plan to focus efforts solely on those four locations can still go ahead during the bankruptcy, and only time will tell if the plan succeeds.

Although no one from Ray Ray's Hog Pit has confirmed the reason, rising beef prices may be a contributing factor to the bankruptcy. Ground beef prices rose 13% in August 2025 compared to the previous year, while steak was up nearly 17%. Steakhouses across the country have had to raise prices on most dishes, and customers have responded by focusing more on chicken and pork. With meat costs ballooning, a barbecue restaurant like Ray Ray's is especially vulnerable.

Many restaurant chains have filed for bankruptcy in 2025, including a few BBQ spots. Both Sticky Fingers and Burnt BBQ and Tacos have filed, while Dickey's BBQ Pit – the largest BBQ chain in the U.S. — has been struggling. But, if you're thinking that there have been an unusual number of bankruptcies in general this year, you're not wrong. While the restaurant industry is notoriously volatile, data shows that bankruptcies at large are up over 10% this year compared to 2024. 

In July 2025, Restaurant Business reported that 348 full service locations across various restaurant chains had closed in the previous year due to bankruptcy filings. Unless something changes and restaurant costs continue to rise while customers face ongoing inflation, the industry may continue to struggle through 2026. Hopefully Ray Ray's Hog Pit will be able to adjust and find a way to keep serving their customers.