Hooters Abruptly Closes 40 Locations Across the US — Here’s Why

It's been a rough year for fast-casual and fast-food dining chains, as a beloved wing joint is the most recent spot to join the list of casual eateries forced to close many locations.

Hooters has announced that it's closing about 40 stores, a move it claims results from market conditions and underperforming restaurants. Closures are reported in Alabama, Georgia, Kentucky, Florida, Texas, Virginia, and more.

The chain restaurant is pivoting its focus on increasing sales of its frozen product line to be sold in grocery stores, perhaps hoping to follow Red Lobster's lead on making the famous Cheddar Bay biscuits available in homes — but time will tell if Hooters wings are in demand in the grocery market.

Casual observers might point out that the social climate has shifted away from the objectification of servers in favor of food quality. However, it is undeniable that the "market conditions" of the price tag on dining out have impacted many Americans' decision to eat at home more often. T

he choice is evident when fast food prices and wait time are comparable to grabbing a to-go order from a local independent restaurant. Here are some of the other dining chains that have had massive closures.

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1. Boston Market

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Boston Market has been plagued by lawsuits, unpaid bills, and closed restaurants for some time. The chain’s owner, Jay Pandya, has filed for personal bankruptcy twice.

Boston Market had 300 locations at the beginning of 2023. But last year, it closed many locations due to evictions for unpaid bills and government shutdowns for unpaid sales taxes. As of right now, there are just 27 operating Boston Market restaurants.

Unless this company experiences a serious turnaround, 2024 might be the end for Boston Market.

2. Hardee’s

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Summit Restaurant Holdings, a major franchisee of Hardee’s restaurants, filed Chapter 11 bankruptcy after closing 39 restaurants in 2023.

The spree of closures has continued into 2024, with several Illinois locations closing in January. We will find out whether this is the end of Hardee’s troubles.

3. Burger King

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Burger King closed hundreds of stores in 2023. The high number of closures was linked to three different franchisees filing for bankruptcy and many more shuttering unprofitable stores.

However, executives hope this sad chapter in the company's history is behind them. Burger King is reinvesting in more marketing and remodeling stores to the tune of $400 million.

Hopefully, the restaurant chain's rate of closures will slow in 2024, but only time will tell.

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4. Krystal

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Krystal has been in trouble for some time. The burger chain filed for bankruptcy in 2020. Fortress Investment Group then acquired Krystal and brought it under the SPB Hospitality umbrella.

By the end of 2022, the number of Krystal restaurants had decreased by 21% over the previous five years.

The plan now is to sell corporately owned stores to multi-unit franchise operators and expand Krystal’s footprint. Jack in the Box is using a similar strategy.

5. White Castle

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As one of the oldest American burger chains, you might expect White Castle to avoid the woes of newer establishments. But when you get sued for biometric privacy law violations, you’re bound to run into trouble — no matter how good the food is.

White Castle faces a judgment of a staggering $17 billion for scanning employees’ fingerprints without consent. Media reports have speculated that a ruling of this magnitude could jeopardize the long-standing restaurant’s future.

6. Steak ‘n’ Shake

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In 2018, Steak ‘n’ Shake had 626 locations. That number dwindled to less than 500 as of 2023. This unnerving trend has continued despite increasing sales.

In 2021, Biglari Holdings stepped in just in time to prevent Steak ‘n’ Shake from filing for bankruptcy. The investment group overhauled the brand, switching it from family dining to a counter-serve and drive-thru restaurant.

However, the overhaul slowed down in 2023, with just two restaurants undergoing such a conversion.

That change has Steak ‘n’ Shake fans nervous about what the upcoming year will bring.

7. Bagger Dave’s

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Bagger Dave's Burger Tavern has been closing locations since 2015. This company doesn't have the presence of McDonald's or Wendy's, but at one time, it had 26 stores across Michigan, Indiana, and Ohio.

Now, that number is down to six.

In a press release, BT Brands — which owns a 40% stake in the company — announced it would convert the existing restaurants into new concepts later in 2024. The Bagger Dave's as we knew it may be gone for good.

Bottom line

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The COVID-19 pandemic was hard on restaurants, and many didn't emerge unscathed. While the majority of the threat may be over, many restaurants' financial troubles continue.

Reduced traffic and sales, higher prices, and customers decreasing what they spend on fast food all spell trouble for the fast-food industry in 2024.

The good news is that these closures might give you an excuse to eat at home and stretch your paycheck further . Still, nobody likes to see their favorite restaurant disappear.

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