Dive Brief:
- Hooters closed a select number of underperforming restaurants, the company confirmed Monday.
- The chain didn’t indicate how many sites closed, but the total could be as high 40 locations, according to some media outlets. Closures included locations in Florida, Texas, Kentucky, Rhode Island and Virginia, according to CNN.
- Hooters said that “current market conditions” were to blame for the decision to close stores. Several other companies have closed restaurants this year, including TGI Fridays and Bloomin’, while Rubio’s and Red Lobster both closed locations leading up to bankruptcy filings.
Dive Insight:
Hooters continues to remain focused on growth despite these closures, the company said. Earlier this year, it highlighted its flexible real estate models and the opportunity for franchisees to open in second-generation real estate sites, as those locations can reduce buildout costs.
In January, the company said it had opportunities for freestanding pads, end caps with large patios, smaller prototypes and non-traditional locations. At the time, the press release said it had over 360 locations in 36 states and 17 countries.
Last year, Hooters launched a digital food court to house its virtual concepts: Chase Elliott’s Chicken Tenders, Hootie’s Burger Bar and Hootie’s Bait and Tackle, with plans to expand the portal with additional concepts. The website is still active and taking orders.
“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.
In 2021, the chain began to expand its fast casual spinoff Hoots Wings with a 60-unit franchise deal with AE Restaurant Group. Still, as of June 2024, the Hoots website lists only about six locations open.