Midwest BBQ Chain Files Bankruptcy As Beef Prices Hit Record Highs

Ray Ray’s Hog Pit, a Columbus barbecue staple, entered Chapter 11 bankruptcy on December 19, 2025, shuttering nearly half its outlets amid record beef prices crippling meat-heavy eateries across the U.S.

Founded in 2009 by chef James Anderson, the chain has navigated rising commodity costs and operational strains that mirror a broader downturn in the barbecue sector.

Financial Crisis Exposed

Court filings in the U.S. Bankruptcy Court for the Southern District of Ohio reveal Smoke Ring, LLC—Ray Ray’s parent—holds $264,349 in assets against $1.26 million in liabilities. The largest debt, about $600,000, goes to First Merchants Bank in Upper Arlington, with 15 creditors total. Documents also note theft and fraud by a former accounting manager, without specifying the amount lost.

These imbalances highlight the acute pressures on small restaurant operators, where debts far outpace recoverable value.

Pre-Filing Closures

Prior to bankruptcy, Ray Ray’s shut three sites in November 2025: the Johnstown and Marion spots under the “Ray Ray’s Ohio Style” banner, plus the Linworth food truck. Johnstown launched in April 2025 and Marion in August, both lasting under a year. The moves aimed to streamline focus on core strengths.

Four remaining outlets—Clintonville, Franklinton at Land-Grant Brewing, Westerville, and Granville—stay open. Under Chapter 11 Subchapter V for small businesses with $1-10 million in debt, the company retains control as debtor-in-possession. A reorganization plan is due March 19, 2026, with normal operations continuing.

Beef Price Surge

Skyrocketing beef costs drive the filing, fueled by the U.S. cattle herd hitting 86.7 million head on January 1, 2025—the smallest since 1951 and down 8.5% from 2019. Droughts, high feed prices, interest rates, and producer exits shrank the beef cow herd from 31.7 million to 27.9 million, with the 2025 calf crop at 33.1 million, the lowest since 1948.

Bureau of Labor Statistics figures show ground beef up 13%, steak 16.6%, and minced beef 12.8% year-over-year through August 2025. National ground beef averages $5.67 per pound, a 43% rise since January 2021. Projections point to $10 per pound by Q3 2026, with no major relief before 2027.

Industry-Wide Strain

Ray Ray’s joins a cascade of barbecue failures. Sticky Fingers Restaurants filed Chapter 11 in March 2025 with $50,000 in assets versus $1-10 million liabilities, closing seven of 11 sites. A Michigan Dickey’s franchisee declared bankruptcy in September 2024 owing $2.1 million. Dickey’s, the largest U.S. barbecue chain, posted an 18.1% sales drop in 2024 and shuttered 17.7% of its 386 units.

Barbecue sales among top chains fell 2% to $18.39 billion in 2024, bucking the sector’s 3% growth. Famous Dave’s dropped 6%, Sonny’s BBQ 4.2%. Dickey’s average unit volume slid 8% to $620,000, leaving many franchisees unprofitable. Beef reliance limits menu flexibility compared to other concepts.

Layered Challenges Ahead

Compounding factors include egg price spikes, wage hikes, pandemic debt, and rising leases. Over 70 major restaurant firms filed bankruptcy in July 2025 alone, up 78% year-over-year. Closures hit 348 full-service spots in the prior year, with chains like Red Lobster, TGI Friday’s, Hooters, Rubio’s, and Buca di Beppo restructuring.

Rebuilding the cattle herd faces biological hurdles: cows need two years from breeding to market-ready offspring. Oklahoma State University’s Derrell Peel says even urgent efforts now won’t boost numbers until 2029. High cattle prices spur caution, as replacement heifers stay costly.

Ray Ray’s path forward hinges on creditor talks, cash flow from four sites, and navigating $10-per-pound beef forecasts. Research indicates 40% of Chapter 11 survivors post operating losses for three years post-emergence. For barbecue operators, sustained high costs through 2027 demand tight operations, debt control, and unique offerings amid a shrinking herd not seen in seven decades.