Hooters, the iconic chain known for its distinct ambiance and chicken wings, has decided to close several locations across the United States. Hooters cited "tough economic challenges" as the primary reason for closures. Rising food and labor costs have significantly pressured the chain, making maintaining profitability in underperforming locations challenging. As noted by multiple sources, including a spokesperson’s statement to CNN on June 24, the company has been forced to make tough decisions to adapt to the current market conditions.
The closures, affecting about 41 stores as reported by local news sources aggregated by Nation's Restaurant News, spanned several states, including Florida, Kentucky, Rhode Island, Texas, and Virginia. Many of these locations were closed abruptly over a weekend, while some had been shuttering over the past few months. Notably, Texas saw the highest number of closures, with 16 locations affected.
Despite these setbacks, Hooters remains optimistic about its future. The 41-year-old brand maintains that it is still highly resilient and relevant. To underscore this point, the chain is expanding its menu offerings and considering new restaurant openings overseas. Furthermore, Hooters has introduced a new lineup of frozen foods in grocery stores, hoping to bolster its revenue streams.
The financial strain that Hooters is currently experiencing is not unique. Several other casual dining chains have faced similar challenges due to inflation and changing consumer behavior. For instance, menu prices in sit-down restaurants increased by 0.4% from April to May 2024, according to Bureau of Labor Statistics. This price hike has led many cost-conscious customers to pull back on spending, adversely impacting the sector's reputation for affordability. Other chains like Applebee's, TGI Fridays, and even Red Lobster—recently filed for bankruptcy—have closed multiple locations.
Hooters began its journey in 1983 in Clearwater, Florida, founded by six businessmen. Over more than four decades, the brand expanded into an international presence, boasting over 430 locations at its peak. After accounting for the recent closures, Hooters still operates around 300 locations globally, a nearly 12% decline since 2018.
