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Hooters restaurants keep closing even as CEO says there's more to the story

Renan Filho Por Renan Filho · 2026-10-14

Despite the company's insistence that a broader narrative explains the closures, the steady shuttering of Hooters locations across the U.S. points to deeper, unresolved problems with the brand's identity and business model.

**Lead**

Hooters, the chain once synonymous with wings, beer, and a controversial waitstaff uniform, is quietly shrinking. Over the past year, dozens of locations have closed in states from Florida to Illinois, leaving customers and industry watchers to wonder whether the brand is in terminal decline. The company’s CEO has publicly stated that there is “more to the story” behind the closures, suggesting a strategic pivot rather than a retreat. But a closer look at the numbers—and the cultural headwinds—suggests that the story is less about reinvention and more about a business model that has run its course.

**Context**

Hooters of America, the privately held company that operates and franchises the chain, has not released a full list of closures, but local news reports and social media posts from former employees have documented at least 40 restaurant shutdowns since early 2024. The closures have hit both corporate-owned and franchised locations, including long-standing outlets in suburban strip malls and downtown districts. The company has attributed some of the closures to “natural lease expirations” and “market optimization,” but the pace has accelerated noticeably.

In a statement to a trade publication earlier this year, the CEO acknowledged the closures but framed them as part of a deliberate strategy to “strengthen the brand for the long term.” He hinted at new formats, menu innovations, and a renewed focus on takeout and delivery. Yet no concrete details have emerged. Meanwhile, competitors like Buffalo Wild Wings and Wingstop have continued to expand, and even casual-dining chains that once struggled—such as Chili’s and Applebee’s—have reported stable or growing traffic.

The Hooters brand has long faced criticism for its sexualized service model, which relies on female servers in tight tank tops and orange shorts. While that formula drove curiosity and loyalty for decades, changing social norms and a tighter labor market have made it harder to staff and sustain. The company has also struggled with lawsuits over gender discrimination and wage practices, adding legal costs and reputational drag.

**Analise**

The CEO’s claim that “there’s more to the story” is a classic corporate deflection. When a chain closes a significant number of locations without a clear turnaround plan, the most likely explanation is that the underlying economics no longer work. Hooters’ average unit volume has been flat or declining for years, according to industry estimates. The brand’s core demographic—men aged 25 to 54—has not disappeared, but their dining habits have shifted toward fast-casual and delivery, where Hooters has little presence. The company’s attempt to launch a virtual brand called “Hooters Wings” on delivery platforms has not gained meaningful traction against established players.

More fundamentally, Hooters faces an identity crisis. The chain cannot easily abandon its “breastaurant” concept without alienating its remaining loyalists, yet clinging to it makes recruitment harder and invites continued negative press. The CEO’s vague promises of a new direction may be an attempt to buy time while the company explores a sale or restructuring. Private equity owners, who have controlled Hooters since 2019, are likely looking for an exit. A smaller, more profitable core of locations could be sold to franchisees or a competitor, while underperforming stores are simply closed.

There is also a regional dimension. Many of the shuttered Hooters were in older, lower-income suburbs where the chain’s appeal had faded. In contrast, locations in tourist-heavy areas or near sports stadiums have held up better. This suggests that Hooters is becoming a niche, event-driven brand rather than a reliable neighborhood restaurant. That may be sustainable at a smaller scale, but it is not the growth story the CEO is hinting at.

**Fontes**

This opinion piece draws on publicly available information from local news reports covering Hooters closures in states including Florida, Texas, Illinois, and Ohio; industry analysis from restaurant trade publications such as Restaurant Business Online and Nation’s Restaurant News; and statements attributed to Hooters of America’s CEO in interviews with those outlets. No proprietary data or internal company documents were used. The author’s analysis is based on observable market trends and historical performance of similar casual-dining chains.

Renan Filho
Sobre o autor
Renan Filho
Editor-Chefe do FORTIS News

Editor-chefe do FORTIS News. Especialista em tecnologia, inteligencia artificial e mercados financeiros. Criador de fintechs e plataformas digitais que combinam tecnologia, dados e inteligencia artificial para entregar valor real.