Hooters to close dozens of locations across the US, blaming tough economic challenges including rising food and labor costs

Amidst economic challenges, Hooters has closed numerous locations across the United States, including in Florida, Kentucky, Rhode Island, Texas, and Virginia. Despite the closures, the company remains resilient with its frozen food offerings and international expansion. However, the closures reflect the impact of rising food and labor costs on the restaurant industry, resulting in increased menu prices and reduced customer spending.Amidst economic challenges, Hooters has closed numerous locations across the United States, including in Florida, Kentucky, Rhode Island, Texas, and Virginia. Despite the closures, the company remains resilient with its frozen food offerings and international expansion. However, the closures reflect the impact of rising food and labor costs on the restaurant industry, resulting in increased menu prices and reduced customer spending.

NEW YORK — Hooters is the latest chain to close dozens of locations across the United States amid tough economic challenges, including rising food and labor costs.

“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” a spokesperson told CNN.

The company did not release a list of affected locations or a specific number. However, according to local reports, several dozen locations of the wing chain have closed across several states, including Florida, Kentucky, Rhode Island, Texas and Virginia. Some of these are closed this weekend, others in recent weeks.

Despite the closures, Hooters said the 41-year-old brand “remains very resilient and relevant,” pointing to the new range of frozen foods sold in grocery stores and new restaurant openings abroad.

“We look forward to continuing to serve our guests at home, on the road and in our restaurants here in the U.S. and around the world,” the company said.

Taking the closures into account, Hooters has about 300 locations worldwide — down nearly 12% since 2018, according to Technomic, a restaurant consulting firm. For comparison: rivals like Twin Peaks and Dave & Busters have all grown since then.

Menu prices at sit-down restaurants rose 0.4% from April to May, adjusted for seasonality, according to inflation data released this month by the Bureau of Labor Statistics. During that time, prices rose 0.2% at limited-service outlets, including fast-casual and fast-food restaurants.

The increases, especially in fast food prices, have led customers to cut back on spending and complain online, damaging the sector’s reputation for affordability.

It’s not just Hooters that’s feeling the financial pinch of cash-conscious customers: Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen and the bankrupt Red Lobster have all recently closed their restaurants.

-CNN’s Danielle Wiener-Bronner contributed to this report.

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