Troubled restaurant chain Hooters of America has filed for Chapter 11 in the US and as part of a restructure will sell its company-owned stores and franchise support operations to a franchisee group.
An in-principle agreement will see the franchisee buyer group buy more than 100 of Hooters’ company-owned stores.
The franchise group, which includes Hooters Inc, owns and operates more than 30 per cent of the domestic franchised Hooters locations. In 2024 the franchisees realised average restaurant revenue more than double the company-owned stores.
After the sale, the group will own and operate about 70 per cent of the US sites.
Hooters franchise restructure sees brand return to its roots
Neil Kiefer, CEO of Hooters Inc., said “For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand.
“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximise the potential for sustainable, long-term growth,” Kiefer said.
The restructuring plan includes a brand management entity owned by the buyer group taking over franchise support. The brand management team will have oversight of the national ad fund, the central purchasing organisation, franchise development and support and other key franchise functions.
US restaurants will continue to operate as normal during Chapter 11. The bankruptcy process does not impact its domestic and international franchise operations.
