USA 
United Kingdom
Infamous sports bar chain Hooters has abruptly closed dozens of its “underperforming” restaurants, shutting down multiple locations across the US.
The news comes as many well-known restaurant chains across the US have shuttered stores, including Arby’s and Red Lobster, citing tough economic conditions and rising labor costs.
First reported by Nation’s Restaurant News (NRN), Hooters is reportedly closing restaurants in Lakeland, Florida; Louisville, Kentucky; and Bryan, Texas.
Approximately 40 locations are set to close down, according to NRN.
"Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores," it said in a statement to NRN on Monday.
“Ensuring the well-being of our staff is our priority in these rare instances," said the restaurant chain, known for its ‘Hooters Girls’ – its servers who are typically young women.
“10 minutes to pack up and leave”
A report from Texomas about a store in Wichita Falls, Texas, suggests employees arrived for their usual shift on Sunday morning, only to learn their store was closing and they would be without a job.
Former Hooters employees, speaking to Texomas, said they were only given ten minutes to pack up and leave.
“I feel like if we have to give them a two-week notice that we’re quitting the job, they also have to give us a two-week notice that I’m not going to have a job anymore,” said a former employee, Kate Booker.
“There [are] single moms that work there, and that’s their only income to support their family,” she added.
The news came as a shock to all employees at the store, which had reportedly hired four new workers and conducted further interviews as late as Friday last week.
Another worker, Leslie Macias, expressed her sadness at the closure. “I have a kid, and they worked really well with me, and they understood that sort of thing,” Macias stated.
AI in Hiring: Trends, Insights and Predictions
As AI revolutionizes the recruitment life cycle at warp speed, HR leaders must stay informed about AI’s advantages and its current shortcomings.
How can we adopt these tools to stay competitive and efficient while retaining the human touch that remains critical to optimizing candidate experience, making informed decisions, and, ultimately, building strong teams and cultures?
That is our industry’s biggest challenge as we navigate this new terrain. We hope these insights, tips, and predictions will help drive innovation and excellence in your hiring practice.
“You’re not going to get that at every single job… I came back from Austin, and this was my first job kind of starting over, and I really love these girls, so it’s hard.”
However, Macias, Booker, and other employees told Texomas that they had not been offered an assistance or severance plan and had no clear understanding of any imminent support or action from Hooters.
Workers losing jobs as food chains close amid cost struggles
The news follows other restaurant chains closing stores.
Last week, workers at a legendary Arby’s store on Sunset Boulevard were informed they were being let go as the store closed its doors after 55 years.
The general manager of the restaurant cited California's new $20-an-hour minimum wage law as the “final nail in the coffin” after inflation brought on by the Pandemic made it impossible to continue operating.
Other chains like Rubio’s Coastal Grill and Fosters Freeze have also shuttered locations due to labor costs, and the embattled Red Lobster chain recently closed over 50 locations before declaring bankruptcy.
Red Lobster faces a lawsuit from workers who claim they were laid off without notice.
NRN reports Hooters has seen a 12% decline in the number of its restaurants since 2018, but says it is hopeful that the company will be able to turn a corner.
"With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant," the statement continued. "We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe."
