Hooters, the chain known for its burgers, chicken wings and its sexist model of dressing its waitresses in minimal, tight uniforms, has closed some of its restaurants due to market pressures. Among these difficulties is the increase in food prices in recent years, as well as labor and rental costs. Although it has not been reported which restaurants will be affected by the closure, Nation’s Restaurant News has assured that 40 stores are already closed in areas of Florida, Texas and Kentucky, among other States.
According to the publication, Hooters now has fewer restaurants than in 2018 in the United States. However, the company’s statement clarifies that new establishments are opening inside and outside the country and frozen products are being launched in supermarkets, which is why this brand, which is already 41 years old, ensures that “it remains resistant and relevant. ”.
Hooters is not the only chain that is suffering from this price crisis. Some restaurant chains with similar operations such as Quiznos, Applebee’s, Au Bon Pain, TGI Friday’s, Uno Pizzeria & Grill, Outback Steakhouse o Red Lobster are also facing the impact of inflation on their businesses and their customers. Most of these companies have reduced the number of restaurants and in particular Red Lobster, in the hands of a Thai canning company – Thai Union – has gone into receivership.
In addition to dealing with high costs, customers are increasingly cautious with their money. According to retail sales figures, consumption shows signs of weakening and, in fact, restaurant spending fell by 0.4% in bars and restaurants. Food and beverage venues posted total sales of $93.6 billion in May, the lowest since October 2023, according to the National Restaurant Association. Consumers do the math and it is a fact that while prices for food outside the home have risen 4% in the last 12 months, food consumed at home has risen 1%.
Deals and promotions from restaurants to deal with the situation don’t always work either. For example the unlimited menus, the ““all you can eat”, they can become a setback. They know it at Red Lobster, which last summer made a temporary offer of continuing rounds of $20 shrimp permanent. It has been a very expensive success for the company, whose largest shareholder is the Bankok cannery, and its supplier Thai Union. The losses and complications due to the offer that got out of hand have led to the suspension of payments to this chain, which has closed 15% of its stores.
