In a surprising move, Hooters, the iconic restaurant chain known for its wings and distinctive uniforms, has shuttered dozens of “underperforming stores.” This decision comes as inflation and economic pressures continue to squeeze American consumers, forcing many to cut back on dining out.
Facing “current market conditions,” Hooters announced the closure of roughly 40 out of its 300 worldwide locations, affecting states such as Florida, Kentucky, Rhode Island, Texas, and Virginia. This follows a 12% decline in the number of Hooters locations since 2018, according to data from restaurant consulting firm Technomic.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close select locations,” a spokesperson for the brand told The Post on Monday. Despite these closures, the spokesperson emphasized that Hooters, a “brand of 41 years,” remains “highly resilient and relevant.”
Hooters is not alone in feeling the pinch. The restaurant industry has seen several big names struggling. Red Lobster recently closed 93 locations and filed for bankruptcy. Other popular chains like Applebee’s, TGI Fridays, Boston Market, and California Pizza Kitchen have also closed restaurants in response to declining customer spending and increased operational costs.
Cracker Barrel’s CEO candidly admitted that the chain is “just not as relevant” as it once was, with its stock taking a significant hit. Overall, restaurant spending has been on a downward trend, falling in four of the past six months according to Census data reported by NBC. In May, restaurant sales totaled $93.6 billion, the lowest since October 2023, according to the Nation’s Restaurant Association.
A survey by consultant group KPMG revealed that 41% of consumers plan to spend less on dining out this year, a stark shift from last year’s trend of increased restaurant spending. This consumer pullback underscores the challenges faced by the restaurant industry in the current economic climate.
Despite the closures, Hooters is looking to the future with optimism. The company has been actively opening new locations both domestically and internationally, and expanding its brand into grocery stores with Hooters-branded frozen foods. “We look forward to continuing to serve our guests at home, on the go, and at our restaurants here in the US and around the globe,” the spokesperson added.
Hooters’ efforts to adapt to the changing market conditions include leveraging its well-known brand to diversify revenue streams and remain competitive. However, the economic realities facing consumers—marked by high dining costs and decreased discretionary spending—present a formidable challenge for the entire restaurant industry.
As Hooters and other chains navigate these turbulent times, it remains to be seen how successful these strategies will be in maintaining their foothold in an increasingly difficult market. The closures serve as a reminder of the broader economic struggles affecting businesses and consumers alike, as inflation and financial uncertainty continue to shape spending behaviors across the nation.