Hooters Goes Bankrupt as Founders Plot a Bold Comeback to Rescue the Brand

According to data from the National Restaurant Association, nearly 40% of U.S. consumers now prefer ordering takeout or delivery over dining in—a sharp contrast from pre-pandemic trends. That shift, paired with a tight labor market and rising supply chain costs, has hit mid-tier chains particularly hard.

“We’re seeing a generational shift in how Americans dine,” said restaurant analyst Dana Townsend. “The companies that survive will be those that either reinvent themselves or double down on what made them unique in the first place.”

With its founder-led restructuring and pivot to a franchise-only model, Hooters is attempting both. The chain is betting that nostalgia, streamlined operations, and strategic franchise partnerships can carry it through this turbulent chapter.

The company expects to exit Chapter 11 within 90 to 120 days.

For now, the wings are still hot, the beer is still cold, and the doors remain open. But the road ahead for Hooters will require more than just tank tops and zesty sauce—it’ll demand a fresh identity that can weather the modern marketplace.