NEW YORK — Hooters is the latest chain to close dozens of locations across the United States, blaming 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 select number of underperforming stores,” a spokesperson told CNN.
The company did not release a list of affected locations or specific number. However, according to reports, several dozen locations of the wing chain have closed, spanning several states including Florida, Kentucky, Rhode Island, Texas and Virginia. Some of those closed over the weekend, with others shuttering in the past few weeks.
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Hooters is the latest chain to close dozens of locations across the US.
Despite the closures, Hooters said the 41-year-old brand “remains highly resilient and relevant,” pointing toward its new lineup of frozen food sold at grocery stores and new restaurant openings overseas.
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“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 company said.
Accounting for the closures, Hooters has about 300 global locations — a nearly 12% decline since 2018, per Technomic, a restaurant consulting firm. In comparison, rivals like Twin Peaks and Dave & Busters have all grown since then.
Menu prices rose 0.4% at sit-down restaurants from April to May, adjusted for seasonal swings, according to inflation data released this month by the Bureau of Labor Statistics. In that time prices ticked up 0.2% at limited service spots, which include fast casual and fast food joints.
The increases, particularly in fast food prices, have caused customers to pull back on spending and complain online, eroding the sector’s reputation for affordability.
It’s not just Hooters feeling the financial brunt from cash-conscious customers: Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen and bankrupt Red Lobster have all recently closed restaurants.
–CNN’s Danielle Wiener-Bronner contributed to this report.
Rather than vie for customers with steep discounts, Olive Garden is planning to bring people in by highlighting its regular offerings. One 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 rolled out a new “Pairings Menu,” which combines a drink and a breakfast item for a discount.
Fast food has long been a staple of American diets because it is — or was — so inexpensive.
The new list of locations in danger of closing was revealed in court filings last week, and all could be shuttered if they can’t renegotiate their leases.