Hooters Closes Locations Across Multiple States Due to Shift in Business Model and Location

Hooters, a popular restaurant chain, has abruptly closed over 30 company-owned locations across 12 states, including its 24-year-old Grapevine, Texas restaurant, as part of its transition to a franchise business model. The closures, which also affected Houston and San Marcos, Texas, were a result of the company's decision to sell all company-operated locations to franchisees.

The company stated that it will continue to support impacted employees and thanked loyal customers for their dedication to the brand. Hooters, known for its chicken wings and distinctive server attire, has faced increased competition from casual dining chains and emulators, contributing to the decision to shift its business model. The closures come after the company announced in March that it would sell all company-operated locations to franchisees, citing factors such as inflation, increased labor and food costs, and waning consumer spending.

The chain plans to exit bankruptcy within 90-120 days and is selling off 150 company-owned restaurants to a buyer's group of current franchisees, including its co-founders. This move is aimed at positioning the company for future growth and allowing it to focus on its core business operations. By transitioning to a pure franchise business model, Hooters hopes to improve its financial stability and competitiveness in the market.

The closure of these locations marks a significant change in Hooters' business strategy, as the company seeks to adapt to the evolving dining landscape and improve its overall performance. As the company moves forward with its new business model, it remains to be seen how this shift will impact its loyal customer base and the overall success of the brand.