Hooters closed nearly 40 chains in 2024, citing rising labor and food costs|Mike Mozart|CC BY 2.0
Restaurant chain Hooters filed for bankruptcy this week, joining the list of fast-casual dining franchises that have recently collapsed.
But it’s not going anywhere
The company plans to sell all 100 US locations to two franchisee groups operating its restaurants in Tampa, Florida, and Chicago, Illinois.
One of the buyers is the original Hooters founder, Neil Kiefer, CEO of the franchisee group Hooters Inc.
The chain expects to emerge from bankruptcy within 90 to 120 days while reassessing its operational footprint, potentially leading to more closures.
The brand, acquired by private equity firms in 2019, plans to return to its founder-led roots, focusing on making the chain more family-friendly.
In 2024, it closed nearly 40 chains, blaming rising labor and food costs. The company also battled lawsuits over workplace discrimination.
Last year, several food chains also closed down. Red Lobster, TGI Fridays, Boston Market and BurgerFi filed for bankruptcy, citing rough business conditions.