Chicken Shack to Open at Lake Murray State Park Under New Oklahoma Strategy

Chicken Shack Set to Open at Lake Murray State Park Amid Oklahoma’s State Park Restaurant Reforms

Oklahoma is reviving its state park restaurant program with the arrival of Chicken Shack at Lake Murray State Park, a move aimed at addressing years of financial and operational turmoil. The fast-casual chain, which will operate inside the Lake Murray State Park Lodge, is scheduled to open before the end of 2026, according to OKCFOX.com. This marks the latest effort by the Oklahoma Tourism and Recreation Department (OTRD) to stabilize its concession model after two previous operators faced legal and fiscal crises.

The New Model: Flexibility Over Franchise

The agreement with Chicken Shack represents a departure from previous state park restaurant contracts, which required operators to manage multiple locations across the state. Amy Blackburn, OTRD’s executive director, emphasized that the new approach allows businesses to focus on a single site, increasing their chances of success. “Having a single location I think gives everyone a better chance at success,” she said, citing the chain’s existing three Oklahoma locations and established business model as key factors.

The contract also grants operators greater flexibility to adjust staffing and hours based on seasonal demand. At Lake Murray, Chicken Shack plans a 6,600-square-foot facility offering counter service, dine-in, and grab-and-go options. Menu staples include broasted chicken, pork chops, and fried okra, with employment projections ranging from 12–15 staff during off-peak seasons to 20–25 during peak summer months.

Avoiding Taxpayer Dollars, But Not All Risks

One of the most notable aspects of the deal is the absence of state-funded startup costs. Chicken Shack will use equipment retained from the previous operator, Lookout Kitchen, and will not receive direct financial support from OTRD. “We are not financing anything to get this going,” Blackburn stated. However, the state will retain responsibility for trash collection and certain equipment maintenance, while the restaurant will cover its own marketing expenses—though with a catch.

The contract includes a revenue-sharing structure: Chicken Shack will pay OTRD 4% of gross sales if the department markets the restaurant, or 2% if it handles marketing independently. The latter option requires the company to allocate an additional 2% of sales toward marketing efforts, with any shortfall during the initial term (through October 2027) requiring reimbursement. The agreement also mandates a $50,000 surety bond or letter of credit, with four one-year renewal options available after the initial 15-month term.

Learning From Past Failures

This latest venture follows a string of controversies. In 2025, Lookout Kitchen—which took over after the collapse of Brent Swadley’s operation—owed the state over $250,000, leading to a temporary shutdown and subsequent legal action. Swadley, who was convicted in May 2026 of conspiracy to defraud the state, had previously overseen a contract that ended in similar financial mismanagement. Blackburn acknowledged the risks and stated that the new model gives the state more control over operators.

“We do have payment terms and conditions of which we will enforce,” she said, noting the appointment of a full-time concessionaire coordinator to monitor compliance across the state park system. “Success would mean the restaurant remains open a year from now, with full seats and increased park visitation.”

Who Bears the Burden?

For Oklahoma taxpayers, the arrangement appears low-risk on paper.

Oklahoma Monitors Revenue Payments for State Park Restaurant

The next critical milestone is the March 2027 deadline for revenue-sharing payments to resume. If Chicken Shack meets its financial commitments, the model could serve as a blueprint for other state parks. However, the contract’s renewal terms—and the state’s ability to enforce them—will be closely watched. Blackburn hinted at broader plans, stating that “more announcements” about other state park restaurants are expected by spring 2027.

For now, the focus remains on Lake Murray. As the restaurant prepares to open, its success or failure will test whether Oklahoma’s revised approach can break the cycle of fiscal and operational instability that has plagued its state parks for years.

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