Hooters, the iconic restaurant chain famed for its orange uniforms and all-female waitstaff, has announced it is filing for bankruptcy. However, the brand reassures patrons that it intends to continue operations. During the bankruptcy proceedings, Hooters plans to sell its 100 company-owned outlets to two franchisee groups that already manage Hooters in Tampa, Florida, and Chicago.
This challenging phase for Hooters reflects broader issues within the fast-casual dining sector, which has seen other establishments like BurgerFi and Red Lobster also enter bankruptcy amid difficult market conditions. Hooters has faced scrutiny over its workforce, with several lawsuits alleging racial and gender discrimination. Additionally, the company shuttered numerous locations last year, citing escalating food and labour costs.
Despite these challenges, Hooters is optimistic about its future. The firm has indicated a plan to emerge from Chapter 11 bankruptcy protection in roughly 90 to 120 days, with the aim of strengthening its financial foundation while maintaining its commitment to quality hospitality and food. Sal Melilli, CEO of Hooters of America, expressed confidence that this restructuring marks a crucial step in revitalising the brand.
The restaurant chain filed for bankruptcy in a Texas court, a strategy often used by organisations to reorganise their finances. It will continue day-to-day operations while assessing the viability of its company-owned locations, which may include closing down some outlets.
The acquisition group comprises original Hooters founders, including Neil Kiefer, who leads Hooters Inc. Through this buyout, Kiefer aims to restore the brand’s essence, stating that they intend to make Hooters more family-friendly, signalling a shift in strategy to attract a broader customer base. The founders are committed to ensuring that “our renowned Hooters restaurants are here to stay.”
Overall, while Hooters navigates its financial difficulties, it remains dedicated to retaining its presence in the market and evolving to meet the changing needs of its clientele.