Hooters, a chain recognized for its signature chicken wings and orange-clad wait staff, has dramatically closed numerous restaurants nationwide, surprising both patrons and possibly employees. This string of closures descends mere months after the company's March bankruptcy declaration, as reported by FOX 5 Atlanta. Locations in several states, including Georgia, where at least four restaurants have been shuttered, are facing the reality of this abrupt decision.
The legacy brand, which has graced the American dining scene for 42 years, appears to be consolidating its operations in the wake of financial turbulence. Currently, as disclosed by CNN, Hooters is streamlining its business model to focus on a future driven by a pure franchise model. These drastic steps saw the sale of all 100 company-owned restaurants to two franchisee groups located in the Tampa and Chicago areas, a strategy Hooters hopes will bolster their iconic legacy amidst challenging economic times.
A statement provided to CNN revealed the company's stance on the closures, "After careful consideration of what is needed to best position our company for the future, Hooters made the difficult decision to close certain company-owned locations." Yet, specifics regarding these decisions and the number of employees impacted remain under wraps, as the spokesperson did not clarify whether the staff were forewarned about the upcoming changes.
Previously, CNN interviewed Maeve Webster, president of Menu Matters, who noted that "Closing 'poorly performing units can be better for the chain overall than trying to fix them” because devoting resources to ailing locations, can "undermine the entire chain." This operational shift signals a broader trend noticed among other chains like Bahama Breeze and TGI Fridays, which are also modifying their strategies to stay afloat in a consumer market hit by inflation and declining disposable incomes.
