Hooters closes dozens of restaurants

When you build a brand around a very specific marketing play, you run the risk of your entire business falling out of favor. That happened with all-you-can-eat buffets during the Covid pandemic.

What was once seen as a great value saw a massive perception shift as the safety of the concept overrode any desire to eat a lot of food at a low price for many customers.

"Tying a brand to a dominant cultural attitude is a double-edged sword. If you support something a large group of people feels, you'll enjoy loyalty and growth that neutral brands rarely enjoy. But if the attitude shifts, you might go from boom to bust overnight," Inc. reported.

That type of cultural shift helped fuel Hooters's collapse into bankruptcy. The chain that pioneered the "breastaurant" concept fell out of favor with many consumers who recognized that the chain's reliance on buxom waitresses in short shorts and low-cut tops might be a little sexist.

Criticism that the concept objectifies women wasn't the only challenge facing the chain.

Rival Twin Peaks uses a mildly classier version of the same concept, albeit with a better menu and slightly classier outfits. So, room still clearly exists for the breastaurant concept, but there's clearly a line some consumers won't cross.

Hooters, now owned by former franchisee Hooters of America, wants to change how people perceive the brand.

While those efforts are underway, the chain has closed dozens of restaurants and more are at risk.

Hooters wants to change perception

While you might think that all Hooters were the same, there was actually a division between restaurants operated by the brand's founders, and ones run by franchisee Hooters of America (HOA).

Those HOA stores deviated from the traditional orange shorts and low-cut tops to having more risque outfits and even offering bikini nights.

New CEO Neil Kiefer wants to "re-Hooterize" the brand and bring it back to its roots.

Kiefer traces his history with the brand back to its most popular days. He was Hooters' attorney when it was founded in Clearwater, Florida, in 1983 and became CEO of the original group of restaurants in 1992.

"The founding branch stayed true to the brand's roots as a laid-back beach hangout, Kiefer told Restaurant Business.

Hooters faces sagging interest

As the new CEO, Kiefer wants to return to that vibe and give the chain a broader, more family friendly appeal. His first moves in taking over was to address the outfits and a change from the chain's classic sauce to a cheaper one.

He has also made it clear that closing some locations was part of the turnaround plan.

While Hooters has struggled, it's not alone in facing a challenge to find an identity.

It's a broad trend where restaurant operators need to show a willingness to adapt, Ben Mathews the leader of McKinsey's restaurants group, shared in the consulting firm's "The Future of Restaurants" report.

"The restaurants that succeed over the next several years won't be fixated on short-term price and menu architecture or cost management. They'll be the ones willing to ask harder questions about who they're trying to serve, what experience they're really offering, and which outdated axioms they need to unlearn to get there," he said.

Kiefer has been trying to change the brand, but many of its locations won't survive.

"When Hooters Inc. took over 110 bankrupt locations from franchisor Hooters of America in November, it flagged about 40 of them as particularly challenged. It gave them some time to turn things around before closing about a dozen in recent months, with another 10 to 12 expected to shut down over the next 30 to 60 days," Kiefer told Restaurant Business.

Hooters fights to survive

Some experts think that Kiefer might not be on the right path.

As societal standards have evolved, going back to Hooters' past may not be the right choice, Lilly Jan, senior lecturer of food and beverage management at the Nolan School of Hotel Administration at Cornell University, said in a press release.

"A ‘breastaurant' does not provide an inclusive environment for dining out in groups, particularly when you consider that families are dining out together more than ever before. Having a concept that does not provide an experience that is compelling or inclusive to a variety of dining groups is inherently limiting," she said.

Jan thinks that the chain needs a new concept if it hopes to survive.

"Hooters hasn't meaningfully reinvented itself and its brand identity over the years to adapt to the times. Places like Buffalo Wild Wings (a more direct competitor) or Olive Garden, Applebee's, Texas Roadhouse (segment competitors) have cut into Hooters' market share, often offering more immersive concepts, better value, more variety, or all of the above," she added.

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This story was originally published May 30, 2026 at 6:50 AM.