Hooters, a popular chain restaurant known for its wings and servers, is the latest in a series of closures sweeping across the United States. The company cited tough economic challenges, including rising food and labor costs, as the reason for closing dozens of locations.
The spokesperson for Hooters mentioned that like many other restaurants facing similar market conditions, they had to make the difficult decision to shutter underperforming stores. While the company did not disclose a specific number or list of locations affected, reports indicate that several dozen Hooters restaurants across multiple states, including Florida, Kentucky, Rhode Island, Texas, and Virginia, have closed recently.
Despite the closures, Hooters emphasized that it remains a highly resilient and relevant brand. The company mentioned its new lineup of frozen food sold in grocery stores and new restaurant openings overseas as indicators of continued growth and success.
With approximately 12% decline in the number of global locations since 2018, Hooters now operates around 300 stores worldwide. In comparison, competitors like Twin Peaks and Dave & Busters have seen growth during the same period.
The restaurant industry as a whole has been affected by rising menu prices, with sit-down and limited service restaurants both experiencing slight increases in prices. This has led to a decrease in customer spending and negative online reviews, impacting the sector’s reputation for affordability.
Hooters is not the only chain suffering from financial challenges. Other popular restaurants like Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen, and Red Lobster have also closed locations in response to changing consumer preferences.