The legendary Hooters chain has left the world stunned after declaring bankruptcy. Hooters has always been more than just a restaurant, it has been a very distinctive brand around the world thanks to its laid-back and informal aesthetic, and of course, its chicken wings menu.
But after years of struggling with financial difficulties, they have filed for Chapter 11 bankruptcy. However, this does not mean the company will disappear. Or so they say. Here’s everything we know about this bankruptcy filing.
What is Hooters?
Hooters is an American restaurant chain with over forty years of history, founded in Florida. It’s well known for having “Hooter Girls” serving the menus (although, to be fair, they could have modernized a bit on this), but clearly, one of the brand’s biggest trademarks has always been their chicken wings.
Selling to save the brand
That’s the main plan presented by the company’s executives in court in Texas: they intend to redefine their structure by selling 100 company-owned restaurants to two key franchise groups located in Tampa (Florida) and Chicago, which already manage a third of the franchised locations in the country.
What happened to them?
The fall of this restaurant chain hasn’t been sudden, they’ve been facing various obstacles over time, mainly rising food costs, increased minimum wage, and unsurprisingly, lawsuits over gender discrimination, including racial discrimination.
Even though it’s a well-known brand, that doesn’t mean their business and marketing model isn’t outdated in today’s social and economic context, which demands equality and respect.
The bankruptcy announcement
It’s clear that no one enjoys announcing their business is bankrupt. CEO Sal Melilli said that the announcement marked an important milestone in strengthening the company’s financial foundation and continuing to deliver the same hospitable experience they’ve always offered. They also hope to emerge from Chapter 11 within a maximum of three months.
It won’t be a full shutdown, but watch out for changes
One of the most notable aspects of the changes they want to implement is the intention to bring the brand closer to a more family-friendly environment.
Since 2019, Hooters has been owned by private equity firms Nord Bay Capital and TriArtisan Capital Advisors, along with some of its original founders. Now they are looking for a new approach that can also appeal to younger generations.
Hooters’ most popular menu item
In case you want to visit your nearest Hooters before the changes happen, we’ll recommend our favourite menu (ours and half the country’s): the Hooters Wings are the chain’s star dish. You can order them bone-in or boneless, and you can add a variety of sauces that will make your mouth water.
On the other hand, we’re also big fans of the Hooters Burger, classic but spectacular. And what about the curly fries? Our favourite are the fully loaded ones.
What does the future hold?
Neil Kiefer, one of the founders, stated that for years, Hooters was in the hands of investors who didn’t understand the essence of the brand, but now everything is going to change, they want to recover their original essence with a much more modern vision for today’s society. What changes will the brand bring? We just ask that they don’t take the wings off the menu!
