new york
CNN
—
Hooters has become the latest chain to close dozens of locations across the United States, citing tough economic challenges including rising food and labor costs.
“Like many restaurants feeling the pressures of the current market environment, Hooters has made the difficult decision to close some underperforming locations,” a spokesperson told CNN.
The company has not released a list of affected stores or a specific number, but local reports say dozens of the Wings chain's locations have closed across several states, including Florida, Kentucky, Rhode Island, Texas and Virginia, with some locations closing over the weekend and others over the past few weeks.
Despite the closures, Hooters said the 41-year-old brand “remains very resilient and relevant,” pointing to new frozen food products sold in grocery stores and new restaurant openings overseas.
“We look forward to continuing to serve our customers at home, on the go and in our restaurants across the U.S. and around the world,” the company said.
Taking into account the closures, Hooters operates about 300 stores worldwide. According to restaurant consulting firm Technomic, restaurant sales have fallen nearly 12% since 2018. In comparison, rivals like Twin Peaks and Dave & Buster's have all grown since then.
Adjusting for seasonal fluctuations, menu prices at sit-down restaurants rose 0.4% from April to May, according to inflation data released this month by the Bureau of Labor Statistics. Prices at limited-service establishments, which include fast-casual and fast-food restaurants, rose 0.2% over the same period.
Rising fast-food prices in particular have led customers to cut back on spending and complain online, tarnishing the industry's reputation for affordability.
Hooters isn't the only chain feeling the financial strain of cash-driven customers: Applebee's, TGI Fridays, Boston Market, California Pizza Kitchen and bankrupt Red Lobster have also recently closed restaurants.
–CNN's Daniel Wiener Bronner contributed to this report.
