Iconic Nationwide Restaurant Chain Files For Bankruptcy

For decades, Hooters built its brand around wings and waitresses. Now, the once-iconic chain is seeking bankruptcy protection after years of financial strain.

Key Facts:

Hooters’ parent company, HOA Restaurant Group, filed for Chapter 11 bankruptcy in North Texas on Monday.
Rising food and labor costs, shifting customer preferences, and stiff competition have hit the chain hard.
The plan involves selling 100 company-owned U.S. locations to a group of seasoned Hooters franchisees.
Franchisees will continue to operate all remaining U.S. and international Hooters locations—more than 420 in total across 29 countries.
The company has faced legal trouble and declining profits in recent years, including the closure of 40 underperforming U.S. restaurants in 2023.

The Rest of The Story:

Hooters became famous for its chicken wings, casual sports-bar atmosphere, and its all-female waitstaff dressed in revealing uniforms.

But over the years, this formula has lost some of its appeal.

Changing customer attitudes, rising costs, and increasing competition from fast-casual upstarts like Shake Shack have pushed Hooters to the edge.

Now, the brand is attempting a turnaround.

Under the bankruptcy plan, the most successful Hooters franchisees—who operate many of the highest-grossing locations—will take over 100 company-owned restaurants.

CEO Neil Kiefer believes returning control to these experienced hands will help the chain recover and thrive.

Even amid bankruptcy, Hooters claims it won’t be disappearing.

Locations run by franchisees and international partners will stay open.

That includes all overseas sites, which make up a significant portion of its global footprint.

Hooters files for bankruptcy. It plans to sell itself back to its original founders who say its restaurants are "here to stay." https://t.co/ZPS0Zoy0mg

— CNN Breaking News (@cnnbrk) April 1, 2025

Commentary:

This is just one more casualty in the long list of restaurant chains that couldn’t survive the economic environment created under the current administration.

While flashy ads claim Bidenomics is working, small and mid-sized restaurant brands are being crushed by inflation, regulatory burdens, and persistent supply chain issues.

Hooters is far from alone—Red Lobster, TGI Fridays, and On the Border have all hit bankruptcy courts recently.

It’s no surprise.

The cost of doing business has skyrocketed.

Rising wages, expensive ingredients, and shifting regulations have made it nearly impossible for legacy chains to stay competitive.

Meanwhile, younger, leaner competitors without bloated overhead or aging concepts are eating their lunch—literally.

HOOTERS hired all those trans-missions and DEI hires & now they're filing for bankruptcy. 🤣🤡
"Correlation does not equal causation"
Or does it? 🤔 pic.twitter.com/WQ6xjeRnOt

— TrumpsKitten (@TrumpsBadKitty) April 1, 2025

Fast casual might be the trend, but that doesn’t mean older brands can’t evolve.

The key is leadership that understands both the customer and the business.

Hooters’ decision to return to its roots—letting longtime franchisees steer the ship—might be the smartest move it’s made in years.

But even strong leadership may not be enough until the broader economy turns around.

Many restaurants are hanging on by a thread, especially those that rely on middle-class diners who are now cutting back.

Consumer confidence is shaky, and the average family is feeling the pinch at the grocery store and the gas pump.

The good news is that a change in leadership in Washington could reset the table.

A focus on growth, energy independence, and regulatory relief would go a long way in reviving America’s service and hospitality sectors.

Until then, expect more chains to close their doors or follow Hooters into bankruptcy court.

The Bottom Line:

Hooters is in trouble, but it’s not gone yet.

The bankruptcy filing could give it a second chance by putting control back into the hands of franchisees who know the business.

Still, this is another example of how current economic conditions are hammering the restaurant industry.

If the economy starts to shift in the right direction, brands like Hooters may yet survive the storm.