Hooters has abruptly shut down over 30 restaurants nationwide, including three in Texas, as part of its Chapter 11 bankruptcy filing. The closures affected the Grapevine, Houston (120 Farm to Market 1960 Road W), and San Marcos locations.
While the shutdowns were sudden, they came as no surprise following Hooters’ recent bankruptcy announcement. Notably, the closure of the San Marcos location, situated in a vibrant college town home to Texas State University, raised eyebrows given such areas typically sustain steady traffic for casual dining and bar-style restaurants.
The closures apply only to corporate-owned stores, which Hooters directly operates. Franchise locations, typically owned and managed by local business owners, remain unaffected by the restructuring efforts. This means the Amarillo Hooters, an independently owned franchise, is currently not expected to close due to the bankruptcy proceedings.
However, like many casual dining brands, Hooters is facing challenges from declining sales and reduced customer traffic across the country. An anecdotal visit to a local Hooters recently revealed unusually slow business even during peak dinner hours.
To address financial strain, Hooters corporate is working to transfer ownership of many remaining corporate locations to local franchisees. So far, franchisees have agreed to acquire over 100 corporate-owned Hooters restaurants, a move aimed at reducing the company’s debt burden and stabilizing operations.
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