America, get ready to be re-Hooterized.
More than 100 Hooters restaurants across the country are in line for a makeover following the sale last month of Atlanta-based Hooters of America (HOA) to a pair of franchisees, Hooters Inc. and Hoot Owl Restaurants.
HOA was the largest Hooters operator in the U.S. with 111 locations. It filed for Chapter 11 bankruptcy in March, and the sale to two experienced operators is part of its restructuring plan.
Florida-based Hooters Inc. is owned by some of the men who opened the first Hooters in 1983 in Clearwater, Florida. After splitting from HOA in the early 2000s, Hooters Inc. went on to operate more than 20 successful locations in Florida and the Chicago area.
While HOA’s restaurants became increasingly adult-oriented, Hooters Inc. stuck to its original blueprint, which was more casual and family-friendly. It now plans to bring that philosophy to the formerly HOA-owned stores.
Specifically, the new owners plan to implement more modest uniforms for waitresses, trim down the menu and make improvements to the recipes, including a return to the chain’s original wing sauce, which uses butter rather than margarine.
They will also invest in restaurant and equipment upgrades and work to make stronger connections to local communities. The changes have already started rolling out chainwide, the company said Monday in a press release, which referred to the process as a “re-Hooterization.”
[Check out our deep dive on the rise and fall of Hooters.]
“We’re not just acquiring restaurants—we’re taking back the Hooters name to show the world who we really are,” said Neil Kiefer, CEO of Hooters Inc., in a statement. “Our vision is about more than great food and service. It’s about bringing people together, making memories, and ensuring that Hooters remains a place where everyone feels welcome. We’ve done this successfully for over forty years and are beyond excited to rebuild trust one wing, customer, and one family at a time.”
Altogether, there are now 198 Hooters in the U.S. That’s nearly 20% less than there were at the end of 2024, since HOA closed many of its weakest stores amid the bankruptcy process.
Of those, Hooters Inc., will operate 75 and Hoot Owl will have 65. The two companies will also act as the franchise support apparatus for the remaining 58 restaurants they do not operate. The deal makes Hooters a 100% franchisee-operated chain.
The new owners’ hope is that their proven business model can help revitalize a brand that had been struggling with both macroeconomic forces and a heavy debt load.
From 2019 to 2024, Hooters’ U.S. sales declined more than 31%, and unit count was cut by a quarter. These issues left HOA unable to pay off some $376 million in debt brought on by its former owners, ultimately forcing it into bankruptcy.
Hooters Inc.’s restaurants, meanwhile, have thrived. Kiefer has cited average unit volumes of around $4.7 million, more than double those of HOA-operated units, and strong cash flow, along with a pipeline of new units.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.