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Hulk Hogan's Real American Beer brand is trying to buy Hooters

The former WWE wrestler’s fledgling beer company is reportedly planning a bid for the bankrupt breastaurant chain, although Hooters already has another buyer lined up.
Hooters
Hooters of America filed for bankruptcy in March. | Photo: Shutterstock

Hulk Hogan apparently wants to be the next face of Hooters.

The former pro wrestler’s Real American Beer brand is reportedly planning a bid to buy Hooters of America (HOA), the Atlanta-based franchisor that filed for Chapter 11 bankruptcy in March. 

The 1-year-old beer company said last month that it was interested in acquiring the Hooters brand name to use on merchandise. But this latest plan would see Real American acquiring the whole company, including its restaurants, in hopes of turning it around, Business Insider reported.

It was unclear how far Real American’s bid had progressed. In a LinkedIn post last week, CEO Terri Francis wrote that the company has assembled a team of franchising, licensing, real estate and investment experts to help revive the struggling breastaurant chain. But, she added, “We’re not there yet.”

“The opportunity is real, and now’s the time to get the right people around the table to make it happen,” she wrote.

Hulk Hogan promotes his beer at a Walmart in Wisconsin last year. | Photo: Shutterstock

Real American Beer launched last June. It sells a light beer with an image of Hogan on the can as well as merchandise such as hats and clothing. Its marketing is patriotic and seemingly geared toward men.

The company's bid for Hooters faces some hurdles. Perhaps the biggest is that HOA already has an agreement in the works to sell to a pair of franchisees, one of which is Hooters Inc., the group that originally founded the brand 42 years ago and continues to operate locations in Florida and Chicago.

As of June 4, HOA and the buyer group were finalizing paperwork and planned to present it to the bankruptcy court “in the next few weeks,” with a deal expected to close in August.

[Read our feature about the rise and fall of Hooters.]

If Real American does make a bid, it will be up to the court to determine which offer will return the most value to HOA’s creditors. Real American’s lack of restaurant experience could be a factor, especially given the buyer group’s deep ties to the Hooters brand.

That said, Hooters and Real American do have some history. Hogan grew up in Tampa, near Hooters’ hometown of Clearwater, Florida, and the chain was reportedly one of the first places to sell his beer.

And there is some precedent for such a deal. Consumer packaged goods brands have operated restaurants before, such as PepsiCo and Yum Brands and General Mills with Darden Restaurants. But in Real American's case, laws that prevent alcohol suppliers from owning restaurants could complicate things.

Hooters has struggled to overcome the pandemic and its aftermath. Systemwide sales declined 16% last year, according to Technomic, and it has closed about 70 underperforming locations, leaving it with some 200 U.S. restaurants. It had $376 million of debt at the time of its bankruptcy filing.

Under HOA’s current agreement with Hooters Inc. and Hoot Owl Restaurants, the franchisees would take over about 100 of HOA’s company-operated stores and act as franchisor for the rest of the system. Terms of the deal have not been disclosed. 

The 26 restaurants run by Hooters Inc. have significantly outperformed HOA’s, and the group wants to bring its operating philosophy to the rest of the chain. It plans to reinstate Hooters’ original wing sauce recipe and waitress uniforms, which have become more revealing in recent years.

Neither HOA, Real American, or the other prospective buyers had responded to a request for comment as of publication time. 

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