Despite several restaurant closures, Hooters maintains that the 41-year-old brand continues to be “highly resilient and relevant.” Credit: Jonathan Weiss/Shuttterstock.

Restaurant chain Hooters has announced the closure of dozens of its US locations, citing the current economic climate and rising operational costs.

The company has not disclosed a complete list of the affected sites or the exact number, but reports indicate that closures have occurred across Florida, Kentucky, Rhode Island, Texas and Virginia during the spring and early summer of 2024.

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“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” the company said in a statement.

Despite these closures, Hooters maintains that the 41-year-old brand continues to be “highly resilient and relevant.”

The spokesperson highlighted the company’s new ventures, such as a line of frozen food available in grocery stores, and the opening of new restaurants internationally.

“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.

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According to data from restaurant consulting firm Technomic, Hooters operated 293 restaurants in global locations at the end of 2023 – an almost 12% decrease since 2018.

 Inflation data from the US Bureau of Labor Statistics indicates that menu prices at sit-down restaurants rose by 0.4% from April to May 2024, after seasonal adjustments. During the same period, prices at limited-service restaurants, which include fast casual and fast food establishments, increased by 0.2%.

These price hikes, especially in the fast-food sector, have led to a reduction in consumer spending and a flurry of online complaints, undermining the industry’s reputation for affordability.

Hooters is not alone in facing these financial challenges. Chains such as Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen, Red Lobster and Rubio’s Coastal Grill have also recently closed restaurants.