Hooters Announces Closures of Underperforming Restaurants

Wim De Gent
By Wim De Gent
June 25, 2024Business News
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Hooters Announces Closures of Underperforming Restaurants
The parking lot is empty at a Hooters in Augusta, Ga., during the coronavirus pandemic on March 30, 2020. (Kevin C. Cox/Getty Images)

Hooters, the popular restaurant chain known for its chicken wings and orange and white waitress uniforms, is closing “underperforming” locations across the United States.

In a media statement issued on Monday, the company cited “pressure from current market conditions” as the reason for the closures.

The chain did not specify which locations will be closing or provide a timeline for the shutdowns, although these have already been set in motion.

According to USA TODAY reports, Hooters locations in Louisville, Kentucky; Bryan, Texas, and Tampa, Florida closed abruptly over the weekend.

Some restaurants were closed immediately, with no notice given to staff members.

A South Lakeland Hooter employee shared a photo of a letter on social media announcing the closure, dated Sunday, June 23—the last scheduled workday.

“We deeply regret that we were not able to give you notice,” the company wrote, promising the employees to be rehired within 30 days at another location.

“Please trust that we did everything we could to avoid closing this location.”

In Monday’s press statement, Hooters emphasized that “ensuring the well-being of our staff is our priority.”

While underperforming locations will be closed down, the company said it will open new locations domestically and internationally—both company and franchise restaurants.

“This brand of 41 years remains highly resilient and relevant,” the company statement said. “We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”

To navigate the current economy, the company recently launched a line of frozen products sold through U.S. grocery stores, which it plans to expand further by the end of the year.

It’s unclear how many Hooters restaurants will be closed in this recent move.

NTD has reached out to Hooters for further comments.

Restaurant Industry Challenges

The Hooters closures come as the restaurant industry continues to face challenges, with other chains also experiencing significant closures—and worse.

Earlier this month, fish taco chain Rubio’s Coastal Grill filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code and announced the closing of 48 underperforming restaurants in California. Its remaining 86 locations in California, Arizona, and Nevada continue their normal operations.

The company attributed their losses to rising food and utility costs, “significant” minimum wage increases in the state, and decreased in-store traffic due to work-from-home practices remaining in place post-pandemic.

NTD Photo
The exterior of a Red Lobster restaurant in Austin, Texas, on May 20, 2024. (Brandon Bell/Getty Images)

In May, seafood restaurant chain Red Lobster filed for bankruptcy in Florida after failing to renegotiate leases, leading to the closure of 99 locations across 28 states. Its remaining 600 locations at home and abroad continue to operate through the bankruptcy and restructuring proceedings.

Though industry consultants have blamed Red Lobster’s predicament on decades of bad corporate management, industry losses are generally attributed to rising costs and the lingering impact of the pandemic.

Recent data from food industry analyst Technomic showed that nearly a third of the top 500 restaurant chains were forced to close locations in 2023 despite the overall sales in the industry increasing by 7.8 percent.

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