“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores," the company said.
(KTLA) — Hooters is the latest casual dining chain to announce it’s closing a select number of locations nationwide.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores. Ensuring the well-being of our staff is our priority in these rare instances,” the company told Nation’s Restaurant News, which first reported the news, as well as Nexstar's KFDX.
“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. 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.”
The company didn’t specify which or how many locations would be closing, according to The Mercury News.
Comparing an archived list of Hooters locations from February shows as many as 41 restaurants have closed in recent months, but it's unclear when exactly each was shuttered. They have all been removed from Hooters' website and are listed as permanently closed on Google while their social media accounts have seemingly been deactivated:
Hooters joins a growing list of restaurants that have shuttered locations as business costs continue to skyrocket.
Earlier this month, Rubio’s Coastal Grill closed 48 “underperforming” locations throughout California. In May, Red Lobster filed for Chapter 11 bankruptcy protection shortly after closing dozens of restaurant locations.
According to Nation’s Restaurant News, about 33% of chain restaurants ended 2023 with fewer locations than they started with earlier in the year.
This comes as diners continue to face higher eating-out costs: the latest Consumer Price Index from the Bureau of Labor Statistics shows the cost of dining "away from home" is up 4% compared to this time last year. That's more than the 1% increase "food at home" has seen since May 2023.
A study by consultant group KPMG also found that 41% of consumers plan to spend less on restaurants this year, with only 21% saying they plan to spend more.
In response to this, many fast-food chains are offering low-cost meals in hopes of attracting more customers.
