Sticky Fingers BBQ, once a go-to destination for Southern-style smoked meats and tangy sauces, has become the latest casualty of the struggling restaurant industry. Facing mounting financial pressures, the beloved chain has officially filed for bankruptcy, leaving devoted fans stunned and uncertain about its future. Read on to discover the key factors behind Sticky Fingers’ downfall and what this means for the future of the chain.
How Many Sticky Fingers Locations Remain?
South Carolina-based Sticky Fingers Restaurants has filed for Chapter 11 bankruptcy protection, marking a significant downturn for the once-thriving barbecue chain. Before the COVID-19 pandemic, Sticky Fingers operated 11 locations across South Carolina, Tennessee, and Florida. However, the economic fallout from the crisis forced the closure of nine locations. In an attempt to recover, the company reopened two additional locations before last the bankruptcy filing.
Currently, Sticky Fingers operates four restaurants in Greenville, North Charleston, and Summerville, S.C., as well as Chattanooga, Tenn.
According to court filings, the Greenville, S.C.-based chain reported assets of up to $50,000 and liabilities ranging from $1 million to $10 million. The Chapter 11 filing allows Sticky Fingers to restructure its debts and potentially emerge as a more financially stable entity. While the immediate future may involve operational adjustments, the goal of Chapter 11 is to enable the company to continue operations while addressing its financial obligations.
Sticky Fingers’ restructuring efforts will likely focus on adapting to current market conditions, optimizing operations, and exploring opportunities to regain its footing in the competitive barbecue restaurant landscape.
Key Factors Behind Sticky Fingers’ Bankruptcy
Sticky Fingers’ financial downfall stemmed from a combination of pandemic-related struggles, rising inflation, and ongoing legal battles—including one over its name.
Once a thriving brand with a cult following in the New York area, the chain saw its sales skyrocket from $500,000 in 2013 to $22 million in 2023, according to court filings. However, the COVID-19 pandemic led to store closures and declining sales, forcing the company to rely more on less profitable third-party delivery services. Additionally, weak foot traffic in New York City further strained its revenue.
Inflation also played a role in the chain’s struggles, though Sticky Fingers noted in court documents that cost-cutting measures helped improve cash flow. However, legal disputes compounded its financial troubles.
Last year, the company lost a lawsuit against its New York corporate office landlord, resulting in a $600,000 judgment. While Sticky Fingers has appealed the ruling, the legal fees have put significant pressure on its finances. The brand also faced a 2022 trademark infringement lawsuit from another barbecue chain, Sticky’s, further adding to its financial burdens.
To address its short-term cash flow crisis earlier this year, Sticky Fingers raised $2.4 million through an equity fund tied to convertible notes. However, these efforts were not enough to prevent the bankruptcy filing.
Sticky Fingers’ Bankruptcy Divides Fans and Critics
The news of Sticky Fingers’ bankruptcy has sparked mixed reactions from the public. Many longtime customers have taken to social media to share their disappointment, reminiscing about their favorite meals and the memories tied to the beloved barbecue chain. For some, the filing is a heartbreaking end to a once-iconic brand known for its slow-smoked meats and signature sauces.
While some loyal fans remain hopeful for a potential revival, others see the bankruptcy as the inevitable result of declining food quality, increased competition, and economic struggles.
The History of Sticky Fingers
Sticky Fingers Ribhouse was founded in 1992 by three childhood friends—Jeff Goldstein, Todd Eischeid, and Chad Walldorf—who met in seventh grade in Chattanooga, Tennessee. After college, they reunited to pursue their passion for authentic Southern barbecue, opening the first Sticky Fingers location in Mount Pleasant, South Carolina. The restaurant quickly gained popularity for its Memphis-style barbecue, characterized by slow-smoked meats and a variety of signature sauces.
Sticky Fingers became known for its hearty menu featuring barbecue pork ribs, smoked brisket, smoked chicken, pulled pork, chicken wings, French fries, tots, fried okra, baked beans, coleslaw, mac and cheese, and more. As demand for its signature flavors grew in the early 2000s, the brand expanded beyond its restaurants, launching a grocery line featuring five signature barbecue sauces. Today, these sauces—Memphis Original, Carolina Classic, Tennessee Whiskey, Carolina Sweet, and Habañero Hot—are available in more than 2,000 retail locations across the United States.
Over the years, Sticky Fingers expanded across the Southeast, becoming a beloved destination for barbecue enthusiasts. Despite changes in ownership and challenges, the founders returned in 2016 to reaffirm their commitment to quality and authentic barbecue traditions. However, the restaurant industry’s shifting landscape, coupled with economic hardships, ultimately took a toll on the brand. Now, with the chain filing for bankruptcy, the future of Sticky Fingers remains uncertain, leaving loyal customers wondering if this Southern barbecue staple can make a comeback.
Sources: Nation’s Restaurant News, Restaurant Business