Hooters Closes Several US Stores Due to Disappointing Sales, Tough Market Conditions

By Trisha Andrada

Jun 24, 2024 11:23 PM EDT

Hooters
At Hooters on February 23, 2010 in Atlanta, Georgia. (Photo : Rick Diamond/Getty Images for Paramount)

Hooters has joined several American chains that have shuttered several outlets, citing severe economic difficulties. A representative confirmed that the business "has made the difficult decision to close a select number of underperforming stores."

Hooters Closes Outlets Across US

According to CNN, the company has not revealed a particular number or list of impacted sites. Nonetheless, as per local sources, dozens of wing sites in other states, including Virginia, Rhode Island, Florida, and Kentucky, have reportedly shuttered their doors. Over the weekend, some of these establishments shut down, while others have done the same in recent weeks.

Hooters said that despite the closures, the 41-year-old restaurant chain is still resilient and up-to-date, referring to the launch of new outlets abroad and a new line of frozen foods available at grocery stores.

Restaurant research company Technomic states that Hooters now has about 300 stores worldwide, which is about 12% less than it did in 2018. Competitors such as Dave & Busters and Twin Peaks have expanded since then.

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In the Face of Challenging Economic Conditions

Inflation data issued this month by the Bureau of Labor Statistics shows that menu prices at sit-down restaurants climbed 0.4% from April to May after adjusting for seasonal fluctuations. At limited-service venues, such as quick casual and fast food outlets, prices increased by 0.2% throughout that period.

Customers have cut down on spending and taken to social media to complain about the price hikes, hurting the fast food industry's image as an affordable option.

Applebee's, TGI Fridays, Boston Market, California Pizza Kitchen, and the struggling Red Lobster are among the businesses that have lately shuttered their doors. They join Hooters in feeling the pinch from budget-conscious consumers.

READ MORE: McDonald's to Launch $5 Meal Deal on June 25 to Attract Budget-Conscious Diners

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