Restaurant chain Hooters has made the decision to close a substantial number of locations as it looks to navigate a challenging environment in which the inflation economy is keeping consumers from dining out.
The Atlanta, Georgia-based Hooters abruptly said on Monday that it would be closing some locations in an effort to stave off costs. So far this year, the Nord Bay Capital-owned chain is said to have closed dozens of locations in states such as Kentucky, Texas, and Florida.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” Hooters said in a statement to Quartz. “Ensuring the well-being of our staff is our priority in these rare instances.”
The announcement from Hooters further places a spotlight on the challenges that fast casual dining locations have had to grapple with as inflation remains elevated, and labor costs, as well as wage hikes and menu price increases, affect restaurant operators.
Hooters is the latest to join the list of chains closing some of its doors. Just this year, seafood giant Red Lobster said that it would be closing up to 50 locations as it prepared to file for Chapter 11 bankruptcy.
Meanwhile, Applebee’s has found itself in a similar yet darker position. Since 2017, the chain has closed hundreds of restaurants, and that’s only continued. The chain plans to close about 25 to 35 locations this year, according to John Peyton, the company’s chief executive officer.
Nonetheless, Hooters hopes it can still get a hoot.
“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,” Hooters said in its statement, adding that it plans to continue “serving guests at home, on the go and at its restaurants” in the U.S. and around the globe.