Hooters, the casual dining chain once known as much for its chicken wings as for its waitresses in tight orange shorts, has filed for bankruptcy in a Texas court.
The announcement on Monday marks a significant downturn for a brand that once symbolized excess and indulgence in American dining culture.
Under the bankruptcy agreement, a group that includes the company’s founders, who independently run about a third of the franchised locations in the United States, will purchase the company-owned restaurants from the private equity firm currently holding the chain.
Despite the bankruptcy proceedings, the company has assured customers that its restaurants will remain open.
“Our renowned Hooters restaurants are here to stay,” the company said in a statement.
The restructuring plan aims to keep as many locations operating as possible, with the hope of reviving the struggling brand.
Bikini nights and beer: a brand built on a bygone era
Founded in 1983 in Clearwater, Florida, Hooters built its empire on a simple formula: beer, sports, fried food, and a staff of attractive, scantily clad women serving it all.
The concept flourished, expanding across the US and into international markets.
For a time, it seemed like Hooters could do no wrong.
The chain added merchandise, a calendar featuring its servers, and even a short-lived airline, banking on its all-American, slightly risqué image.
Promotions like “bikini nights” and themed events drew crowds of sports fans and bachelor parties alike.
At its peak, Hooters had over 400 locations in 42 states and 29 countries.
For years, the brand thrived, leveraging a mix of nostalgia and controversy.
But as cultural and dining trends changed, Hooters struggled to evolve.
The restaurant industry’s broader shift toward healthier options, fast-casual dining, and inclusive branding left Hooters looking outdated.
The fall: cultural shifts and financial missteps added to pandemic woes
Hooters’ decline was driven by multiple factors, including evolving social attitudes toward gender representation.
The rise of the #MeToo movement and a push for workplace equality made the chain’s branding increasingly polarizing.
Many younger diners, particularly millennials and Gen Z, preferred restaurants that felt more inclusive and modern.
The chain also suffered from financial mismanagement. The private equity owners who acquired Hooters of America accumulated roughly $350 million in debt.
According to the founders, the brand’s decline stemmed from decisions made by its private equity owners, which steered Hooters away from its origins as a laid-back, beach-inspired restaurant known for good food, friendly service, and a family-friendly atmosphere.
A key turning point came in 2021 when Hooters of America introduced new waitress uniforms resembling lingerie rather than the retro-style jogging shorts that had been a hallmark of the brand.
The shift, along with theme nights featuring servers in bikinis, further distanced Hooters from its original identity.
Meanwhile, the COVID-19 pandemic exacerbated financial troubles.
Unlike competitors who successfully pivoted to takeout and delivery, Hooters’ reliance on in-person dining and atmosphere-driven experiences left it vulnerable.
By 2025, mounting debt, declining foot traffic, and an outdated image had left Hooters with few options.
‘Re-hooterization’: A bid to reclaim its roots
Neil Kiefer, CEO of the founder-owned unit HMC Hospitality Group, is leading the effort to revive the brand.
He believes the chain’s downfall stemmed from straying too far from its original identity as a relaxed, family-friendly sports bar.
“I’m calling it a re-Hooterization,” Kiefer said in an interview with Bloomberg.
“You go to some parts of the country and people say, ‘Oh, I could never go to Hooters, my wife would kill me.’ That’s depressing to us. We want to change that.”
Part of the rebrand will focus on reclaiming Hooters’ “beachy destination” vibe while distancing the chain from some of its more provocative marketing.
Kiefer hopes the new approach will attract a broader customer base without completely abandoning the chain’s core identity.
The road ahead in a struggling industry
Hooters’ troubles are not unique. Many casual dining chains have struggled in recent years due to inflation, supply chain disruptions, and shifting consumer preferences.
The costs of dining out have increased, making consumers more selective.
In 2024, a wave of restaurant bankruptcies hit the industry.
Red Lobster, TGI Friday’s, Buca di Beppo, and Rubio’s Coastal Grill all sought bankruptcy protection, struggling to compete with fast-casual brands and delivery services that cater to modern dining habits.
Even before its financial troubles, Hooters saw declining same-store sales in 2024, reflecting broader industry trends.
Hooters’ bankruptcy and restructuring may provide an opportunity for revival, but the brand faces an uphill battle.
While nostalgia might bring back some longtime customers, the challenge lies in balancing the chain’s heritage with modern expectations.
As the founders take back control, the question remains: can Hooters reinvent itself in a way that resonates with today’s diners?
The answer may determine whether the once-thriving chain can escape the fate of so many other struggling restaurant brands.
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