Hooters is known for its wings and the famous Hooters Girls serving them up to customers.
But fans hoping for a good time at the chain were given a crushing update.
And Hooters gave fans some bad news for football season that everyone will hate.
Hooters closing 40 stores as inflation hammers the restaurant industry
Sports bar chain Hooters decided to abruptly close more than 40 “underperforming” locations across the country.
Locations were closed in Florida, Kentucky, Rhode Island, Texas, and Virginia.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” Hooters said in a statement. “Ensuring the well-being of our staff is our priority in these rare instances.”
Hooters had 300 locations worldwide before the recent closures.
Foodservice consulting firm Technomic said that the chain has lost 12% of locations since 2018.
Rivals Tilted Kilt and Dave & Busters have increased their number of locations since then.
Hooters is struggling, but the chain said that it would continue to open new locations.
“With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant,” Hooters 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.”
Hooters created three virtual brands, Chase Elliott’s Chicken Tenders, Hootie’s Burger Bar, and Hootie’s Bait and Tackle, to increase sales on third-party delivery apps like DoorDash.
The pandemic created massive growth in the number of takeout and delivery orders.
But that growth hurt restaurants like Hooters that rely on alcohol sales to boost their bottom line.
Restaurant industry hit with a wave of closures
Inflation has driven up the cost of eating out and that leaves restaurants chasing fewer dollars as customers eat at home more often.
Red Lobster closed 93 locations before it filed for bankruptcy.
Applebee’s, TGI Fridays, Boston Market, and California Pizza Kitchen have all closed locations this year.
Census retail sales data found that restaurant spending in four of the past six months increased for the first time since March 2020.
Consulting group KPMG found that 41% of consumers planned on spending less money at restaurants this year.
Inflation is taking its toll on the restaurant industry as customers look to cut spending.
KPMG US Consumer and Retail Sector Leader Duleep Rodrigo said consumers are still cutting back.
“Consumers are tightening their belts another notch as they hunt for discounts, and even some essentials are being impacted,” Rodrigo said. “We have already seen a few retailers lower prices, as they look to maintain the balance between their margins and demand.”
Technomic found that almost 33% of chains in their Top 500 had a net decrease in the number of locations in 2023.
That number has been going up since 2021.
Lingering inflation is going to cause more pain for the restaurant industry as consumers pull back.
Read All About It will keep you up-to-date on any developments to this ongoing story.
