Many Restaurants Are Struggle To Perform Lately
It’s not just themed restaurants like Hooters or the Rainforest Cafe that have been struggling to attract customers lately. Many well-established restaurants and brands have failed to keep up with emerging trends and increasing business costs.
Source: Ildar Sagdejev/Wikipedia Commons
Agan remarked on the closures that, “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.”
Dozens of Locations Have Closed in the Past Few Years
Although Agan did not detail how many of its restaurants have closed recently, reports show that more than 40 locations have closed across several states.
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Even stereotypically cheaper places like Kentucky, Texas and Florida have been forced to end operations.
Far From the End of the Hooters Brand
Execs at the restaurant chain think that even though they have been facing massive closures and bankruptcies, this is not the end of the legacy.
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Instead, they plan on opening new stores in different locations and hope to gain the attention of a new audience.
More Plans to Launch Consumer Items
On top of the plan to open new locations in up-and-coming areas, the chain thinks that they might be able to gain success in the consumer-grocery department.
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Specifically, Again stated that, “new Hooters frozen products launching at grocery stores” will hopefully keep the brand image in the minds of their preferred diners. He also said, “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.”
Popular Chains Are Closing Around the Country
Throughout the COVID-19 pandemic, prices related to operating restaurants and businesses have increased dramatically. The cost of fuel, food, and transportation is one of the main factors restaurants must consider when setting prices.
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Several popular chain restaurants have been forced to file for bankruptcy amid pandemic closures, lagging customer bases, and high employee wages.
Customers Aren’t as Fond of Eating in Anymore
One of the ongoing challenges that businesses must face in today’s climate is the legitimate complaint of tipping fatigue.
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Customers feel like they’re being forced to tip at every turn: drive-thru’s, coffee shops, takeaways, delivery, and more. Many people on tight budgets have completely eliminated tipping from their daily life. This means no going to restaurants and only buying groceries to cook at home.
Many Big Businesses Are Struggling With High Employee Wages
In general, a full-service restaurant with a large kitchen and a stocked bar only makes around 5% %- 10% profit on its total sales. This small margin means that any change in normal operating costs takes a big hit to the bottom line.
Source: Brett Marlow/Wikipedia Commons
Recent changes in several states relating to the minimum wage that servers and bartenders make has seriously affected corporate restaurant’s abilities to turn a healthy profit.
Sports Bars Are Loosing Their Draw
Hooters are known first and foremost as a sports bar with a laid-back atmosphere. They’re famous for their wings, beer selection, and pretty waitresses.
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In recent years, many diners have swapped out the casual sports bar atmosphere for trendy breweries with outdoor seating or more upscale eateries for a fine dining experience. The sports bar model is lagging behind in most states in the U.S.
When Did Hooters Get So Popular?
The brand first made a name for itself in the 1980s in Florida. The first few locations were opened in well-known spring break and party cities.
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By the late ’80s, the brand had expanded throughout the state and part of the south when investors realized that they had a winner on their hands. At the time, it was a less stressful place to go and talk to women or for college kids to get cheap eats.
Substantial Losses for Hooters Corporate
At the end of 2023, Hooters still had 293 locations worldwide, showing a 1.3% decline from the previous year.
Source: Michael Barera/Wikipedia Commons
Overall, the company’s sales have declined roughly 12% over the past few years despite once making millions in sales at each restaurant.
Many Think the Brand Is Simply Stuck in the Past
On top of ongoing issues with the cost of business, high employee wages, and changing trends, many people say that they don’t want to revisit a Hooters restaurant because they simply refuse to update the menu, waitress uniforms, or theme.
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Millenials are simply not interested in what Hooters has to offer. Greasy wings can be obtained anywhere, and the “breastaurant” concept doesn’t capture the attention of more “woke” generations. With failing sales and closed locations, the brand will now be forced to adapt or lose even more.