Hooters, the popular wing and server restaurant chain, has announced the closure of several dozen underperforming stores across multiple states. The company cited tough economic challenges, including rising food and labor costs, as the reason for the closures.
Despite the closures, Hooters emphasized that it remains a highly resilient and relevant brand. The company mentioned its new lineup of frozen food sold in grocery stores and new restaurant openings overseas as indicators of continued growth and success.
Hooters now operates around 300 stores worldwide, which is a 12% decline since 2018. In comparison, competitors like Twin Peaks and Dave & Busters have seen growth during the same period.
The restaurant industry has been affected by rising menu prices, with sit-down and limited service restaurants both experiencing slight increases in prices. This has led to a decrease in customer spending and negative online reviews, impacting the sector’s reputation for affordability.
Other popular restaurants like Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen, and Red Lobster have also closed locations in response to changing consumer preferences.
