Hooters has shut down around 30 of its restaurants across the U.S., just months after filing for bankruptcy and assuring customers that it had no plans to disappear.
A company spokesperson confirmed the closures, stating that the decision followed “careful consideration” and was aimed at best positioning the company for the future. While an official list of affected sites wasn’t released, reports indicate that locations in Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee, and Texas were among those shuttered.
Despite the closures, the chain emphasized that it remains committed to its long-term strategy. “Hooters is here to stay,” the company said, noting that its focus moving forward is on transitioning to a full franchise model.
Founded 42 years ago and known for its signature wings and servers in bright orange uniforms, Hooters announced in March that it was selling all 100 of its company-owned restaurants to two of its franchise partners operating in the Tampa and Chicago regions.
While the closures may seem sudden, they were anticipated. Earlier this year, the company had signaled plans to reevaluate its footprint, especially among its company-owned locations. It also closed several underperforming restaurants before its bankruptcy filing in early 2024.
Hooters’ restructuring mirrors similar moves from other casual dining chains. Bahama Breeze, owned by Darden Restaurants, also closed 15 locations recently. These sit-down restaurants, which typically attract budget-conscious families, are facing headwinds as inflation cuts into consumer spending.
According to recent consumer sentiment data from the University of Michigan, public confidence in the economy remains near historic lows, highlighting widespread economic anxiety.
Industry experts say closing low-performing restaurants can be a smart move. Maeve Webster, president of consulting firm Menu Matters, pointed out that it’s often more beneficial to shutter struggling locations than to sink resources into reviving them, which could weaken the brand overall.
TGI Fridays is taking a similar approach. The chain, currently restructuring under Chapter 11, has been closing locations gradually and recently revamped its menu in hopes of reinvigorating its remaining 85 U.S. restaurants.