Hooters is the latest chain to close dozens of locations across the United States due to tough economic challenges including rising food and labor costs. A spokesperson for Hooters stated that the company has made the difficult decision to close a select number of underperforming stores. While they did not release a list of affected locations or specific numbers, reports indicate that several dozen locations of the wing chain have closed, spanning several states including Florida, Kentucky, Rhode Island, Texas, and Virginia. Some locations closed over the weekend, with others shutting down in the past few weeks.
Despite the closures, Hooters remains optimistic about the future of their 41-year-old brand. They mention their new lineup of frozen food sold at grocery stores and new restaurant openings overseas. The company looks forward to continuing to serve guests at home, on the go, and at their restaurants both in the US and around the globe. Currently, Hooters has about 300 global locations, which is nearly a 12% decline since 2018 according to the restaurant consulting firm Technomic. In comparison, rivals like Twin Peaks and Dave & Busters have all grown since then.
Menu prices at sit-down restaurants saw a 0.4% increase from April to May, adjusted for seasonal swings. Additionally, prices at limited service spots, which include fast casual and fast food joints, saw a 0.2% increase during that time. These price increases have caused customers to pull back on spending and complain online, negatively affecting the sector’s reputation for affordability. This financial strain is not unique to Hooters; other restaurants like Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen, and Red Lobster have also recently closed locations due to financial difficulties.