NEW YORK — Hooters is the latest chain to close dozens of locations across the United States, due to tough economic challenges, including rising food and labor costs.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a number of underperforming stores,” a spokesperson told CNN.
The company has not released a list of affected locations or a specific number. However, according to reports, several dozen Wing Chain locations have been closed, spanning several states, including Florida, Kentucky, Rhode Island, Texas, and Virginia. Some of them closed over the weekend, others closed their doors in recent weeks.
Hooters is the latest chain to close dozens of locations in the United States.
Phelan M. Ebenhack/AP via CNN Newsource
Despite the closures, Hooters said the 41-year-old brand “remains very resilient and relevant,” pointing to its new line of frozen products sold in grocery stores and the opening of new restaurants overseas.
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“We look forward to continuing to serve our customers at home, on the go and in our restaurants here in the United States and around the world,” the company said.
Including closures, Hooters has about 300 locations worldwide, a decline of nearly 12% since 2018, according to Technomic, a restaurant consulting firm. In comparison, competitors like Twin Peaks and Dave & Busters have all grown up since then.
Menu prices rose 0.4% at table-service restaurants from April to May, seasonally adjusted, according to inflation data released this month by the Bureau of Labor Statistics. During this period, prices increased by 0.2% at limited service outlets, which include fast food and fast food establishments.
Increases, particularly in fast food prices, have caused customers to cut spending and complain online, eroding the industry’s reputation for affordability.
It’s not just Hooters that are feeling the financial brunt of money-conscious customers: Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen and bankrupt Red Lobster have all recently closed their restaurants.
–Danielle Wiener-Bronner of CNN contributed to this report.
Rather than competing for customers with deep discounts, Olive Garden plans to attract people by highlighting its regular offers. An example? Refills for soup or salad and breadsticks.
The arrival of the McDonald’s meal deal comes at a time when the company is battling the perception that it has become too expensive.
The coffee chain has launched a new ‘Pairing Menu’, which combines a drink and a breakfast item at a discounted price.
Fast food has long been a staple of the American diet because it is – or was – very cheap.
The new list of locations at risk of closing was revealed in court filings last week, and all could be closed if they cannot renegotiate their leases.
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