Hooters, a wing chain that has been operating for over 40 years, is the latest restaurant chain to close dozens of locations across the United States due to tough economic challenges. The company has stated that they have made the difficult decision to close a select number of underperforming stores, but have not released a list of affected locations or specific numbers. According to reports, several dozen locations of the wing chain have closed in states such as Florida, Kentucky, Rhode Island, Texas, and Virginia. Some locations closed over the weekend, with others shutting down in the past few weeks.
Despite these closures, Hooters remains optimistic about their future. They mentioned their new lineup of frozen food sold at grocery stores and new restaurant openings overseas as reasons for their continued growth and success. Currently, Hooters has around 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 an increase of 0.4% from April to May adjusted for seasonal swings while prices at limited service spots such as fast casual and fast food joints saw an increase of 0.2% during that time period. 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 .
