Hooters Shuts Down Multiple 'Low-Performing' Establishments
"Given the tough economic climate, Hooters has chosen to shut down some underperforming branches, as a representative revealed to CNN. The exact locations and number of closed stores haven't been disclosed, but local news suggests that several locations across Florida, Kentucky, Rhode Island, Texas, and Virginia have ceased operations. A few closed last weekend, while others have shut down over the past couple of weeks.
Despite these closures, Hooters maintains its optimism, asserting that the 41-year-old brand remains robust and contemporary. The company highlights its new line of frozen meals available in grocery stores and its expansion into international markets as evidence of this.
"We're excited to continue serving our customers at home, on-the-go, and in our US and global restaurants," Hooters stated.
With these closures, Hooters now operates approximately 300 locations worldwide — a drop of around 12% since 2018, according to Technomic, a restaurant consultancy firm. Meanwhile, competitors like Twin Peaks and Dave & Busters have experienced growth since then.
Prices at full-service restaurants increased by 0.4% from April to May, according to recent data from the Bureau of Labor Statistics. Prices at quick-service restaurants, such as fast-casual and fast-food joints, increased by 0.2% during the same period.
These price hikes, particularly in the fast-food sector, have led customers to cut back on spending and voice their discontent online, damaging the sector's reputation for affordability.
It's not just Hooters grappling with financial strain from tight-fisted customers: Applebee's, TGI Fridays, Boston Market, California Pizza Kitchen, and bankrupt Red Lobster have all recently closed locations."
-Paraphrased from CNN's Danielle Wiener-Bronner
