Restaurant chain Hooters has made the choice to close a substantial number of locations because it appears to navigate a challenging environment in which the inflation economy is keeping consumers from dining out.
The Atlanta, Georgia-based Hooters abruptly stated on Monday that it might be closing some locations in an effort to stave off prices. So far this yr, the Nord Bay Capital-owned chain is stated to have closed dozens of locations in states akin to 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 stated in a assertion to Quartz. “Ensuring the well-being of our staff is our priority in these rare instances.”
The announcement from Hooters additional locations a highlight on the challenges that fast casual dining locations have had to grapple with as inflation remains elevated, and labor costs, in addition to wage hikes and menu price increases, have an effect on restaurant operators.
Hooters is the newest to hitch the checklist of chains closing some of its doorways. Just this yr, seafood big Red Lobster said that it would be closing up to 50 locations because it prepared to file for Chapter 11 bankruptcy.
Meanwhile, Applebee’s has discovered itself in a related but darker place. Since 2017, the chain has closed hundreds of restaurants, and that’s solely continued. The chain plans to shut about 25 to 35 locations this yr, in keeping with John Peyton, the corporate’s chief govt officer.
Nonetheless, Hooters hopes it could actually nonetheless 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 stated in its assertion, including that it plans to proceed “serving guests at home, on the go and at its restaurants” within the U.S. and across the globe.