Hooters Shuts Multiple Locations Amid Economic Pressures
Hooters has announced the closure of several “underperforming” restaurants across the United States, attributing the decision to challenging economic conditions, including rising food and labour costs.
“Like many restaurants facing current market pressures, Hooters has made the tough decision to close a select number of underperforming stores,” a spokesperson told CNN.
While the company did not specify the exact number or locations of the closures, local reports indicate that several dozen Hooters outlets have shut down in states such as Florida, Kentucky, Rhode Island, Texas, and Virginia. Some closures occurred over the weekend, while others happened in recent weeks.
Despite these setbacks, Hooters emphasized the continued resilience and relevance of its 41-year-old brand. The company highlighted its new range of frozen food products available in grocery stores and the opening of new restaurants overseas as part of its ongoing strategy.
“We look forward to continuing to serve our guests at home, on the go, and in our restaurants here in the US and around the globe,” the spokesperson added.
According to Technomic, a restaurant consulting firm, Hooters now operates about 300 global locations, representing a nearly 12% decline since 2018. In contrast, competitors such as Twin Peaks and Dave & Busters have expanded during the same period.
Recent inflation data from the Bureau of Labor Statistics shows that menu prices at sit-down restaurants increased by 0.4% from April to May, while prices at fast casual and fast food restaurants rose by 0.2%. These price hikes have led to reduced consumer spending and online complaints, impacting the sector’s reputation for affordability.
Hooters is not alone in feeling the financial strain. Other chains like Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen, and the recently bankrupt Red Lobster have also closed multiple locations.
