Yahoo Finance Hooters Abruptly Closes Dozens Of 'Underperforming' Locations Amid High Inflation
Earlier this year, Red Lobster famously shuttered 87 restaurant locations and filed for Chapter 11 bankruptcy. However, it's not the only chain with major financial woes.
According to CNN, Hooters just abruptly shuttered dozens of "underperforming stores." The infamous chicken wing haunt cited "pressure from current market conditions" for its sudden closures.
"Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision" to shut down an unspecified number of locations, a spokesperson said on Monday.
Us pricing market is killing restraunts. Hooters has closed several restraunts due to inflation crushing food and labour markets. On top of that people cant afford higher prices due to weak labour market. Is hospitality about to take a HUGE hit?🫣👀
— WarrenBuffet2.0 (@GovInsider24) June 25, 2024
just found out on the local news that my favorite watering hole, Hooters Bar and Grille ™️ has closed and i’m DEVASTATED
— ⓜⓘⓣⓒⓗ (@lemichiiii) June 24, 2024
While Hooters did not announce the exact number of closures, according to Nation's Restaurant News, approximately 40 locations were affected across Florida, Kentucky, Rhode Island, Texas, and Virginia. The chain's portfolio previously included a total of 300 restaurants.
While the decision might feel abrupt, Hooters has actually closed 12 percent of its stores since 2018 while popular competitors like Twin Peaks and Dave & Busters have only seen a rise in store openings.
The representative insisted that the "brand of 41 years" is still "highly resilient and relevant" despite the difficult business decision. The company is also reportedly opening new locations across the U.S. and internationally while also rolling out Hooters-branded frozen food.
"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.
Red Lobster and Hooters aren't the only restaurants that have been hit hard recently. Just last week, Pizza Hut shocked fans when it closed 15 locations without a warning. And 150 additional Pizza Hut franchises are reportedly in jeopardy in the wake of the company's legal dispute with one of its franchisees, the EYM Group. Here's the good news, though: some of the closures or impending closures are only temporary.
"While a few EYM franchise-operated restaurants in Indiana have temporarily closed, Pizza Hut remains committed to providing outstanding service and products to our valued customers," Pizza Hut said in a statement. "The company is working to transition these locations and expects many of them will reopen soon. Other restaurants operated by the franchisee outside the Indiana market remain open."
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