Hooters is the latest casual dining chain to announce it’s closing a select number of locations nationwide.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores. Ensuring the well-being of our staff is our priority in these rare instances,” the company told Nation’s Restaurant News, which first reported the news.
“With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant. We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”
KTLA reached out to Hooters but didn’t hear back in time for publication.
The company didn’t specify which or how many locations would be closing, according to The Mercury News.
Hooters joins a growing list of restaurants that have shuttered locations as business costs continue to skyrocket. In May, Red Lobster filed for Chapter 11 bankruptcy protection shortly after closing dozens of restaurant locations.
Earlier this month, Rubio’s Coastal Grill closed 48 “underperforming” locations throughout California.
According to Nation’s Restaurant News, about 33% of chain restaurants ended 2023 with fewer locations than they started with earlier in the year.
This comes as diners continue to face higher eating-out costs. According to CNBC, the cost of “food away from home” has increased more than 25% since the COVID-19 pandemic began and increased another 4% in May compared to a 1% growth for groceries.
A study by consultant group KPMG also found that 41% of consumers plan to spend less on restaurants this year, with only 21% saying they plan to spend more.
“Consumers are tightening their belts another notch as they hunt for discounts, and even some essentials are being impacted. We have already seen a few retailers lower prices as they look to maintain the balance between their margins and demand,” KPMG US Consumer and Retail Sector Leader Duleep Rodrigo said in a statement.
In response to this, many fast-food chains are offering low-cost meals in hopes of attracting more customers.