By Jordan Valinsky
New York – Hooters is the latest chain to close dozens of locations across the United States, due to 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 number of underperforming stores,” a spokesperson told CNN.
The company has not released a list of affected locations or a specific number. However, according to local reports, several dozen locations of the wing chain have closed, spanning several states, including Florida, Kentucky, Rhode Island, Texas and Virginia. Some of them closed over the weekend, others closed their doors in recent weeks.
Despite the closures, Hooters said the 41-year-old brand “remains very resilient and relevant,” pointing to its new line of frozen products sold in grocery stores and the opening of new restaurants overseas.
“We look forward to continuing to serve our customers at home, on the go and in our restaurants here in the United States and around the world,” the company said.
Including closures, Hooters has about 300 locations worldwide, a decline of nearly 12% since 2018, according to Technomic, a restaurant consulting firm. In comparison, competitors like Twin Peaks and Dave & Busters have all grown up since then.
Menu prices rose 0.4% at table-service restaurants from April to May, seasonally adjusted, according to inflation data released this month by the Bureau of Labor Statistics. During this period, prices increased by 0.2% at limited service outlets, which include fast food and fast food establishments.
Increases, particularly in fast food prices, have caused customers to cut spending and complain online, eroding the industry’s reputation for affordability.
It’s not just Hooters that are feeling the financial brunt of money-conscious customers: Applebee’s, TGI Fridays, Boston Market, California Pizza Kitchen and bankrupt Red Lobster have all recently closed their restaurants.
– CNN’s Danielle Wiener-Bronner contributed to this report.
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