Hooters

2025 bankruptcy

In June 2024, Hooters of America abruptly closed approximately 40 locations that were deemed underperforming, blaming rising costs and a decline in sales as part of the decision. On February 21, 2025, it was reported that Hooters of America was preparing to file for Chapter 11 bankruptcy protection within the coming months after prior closures in 2024 and revenue losses at its locations. On March 31, 2025, Hooters of America filed for Chapter 11 bankruptcy protection in an effort to move forward with a sale to franchisees that consists of all of its company-owned restaurants. The company initially had no plans to close restaurants and would remain operational during the procedure. At the time of the bankruptcy, there were 305 Hooters restaurants globally, including 151 restaurants operated by Hooters of America. However, by June 4, 2025, over 30 locations in 12 states permanently closed. Per-store sales at Hooters of America-owned restaurants were less than half those operated by the Clearwater-based company. Overall sales at Hooters of America shrank from $1.2 billion in 2009 to $678 million in 2024.

Real American Beer co-founder Hulk Hogan expressed interest in the company acquiring Hooters out of bankruptcy prior to his death in July 2025.

The Clearwater-based company, along with a group of other franchisees, purchased the Atlanta-based company out of bankruptcy in October 2025. The founders, who still operate the Clearwater-based company and its 22 restaurants, plan to "de-sexualize" the image of Hooters by making attire slightly more modest, ending bikini nights, and returning to its family friendlier roots, while also improving the food quality and reinvesting into the restaurants.

On February 16, 2026, the last Hooters restaurant on Long Island, New York located in Farmingdale closed. On March 22, 2026, the Hooters at Mall of America closed after being at the mall for 33 years.

As of August, 2026, the company has indefinitely closed all remaining locations in 4 states: New York, Massachusetts, Connecticut, and Minnesota. There was no prior notice to the public, and no other details other than a piece of paper taped to the inside of the door, reading:

After much deliberation, we've made the difficult decision to close this location. We are incredibly grateful for the many years of great times, cold beer, hot wings, and unforgettable memories shared here. Thank you to our guests, team members, and community for the support over the years.

Hoots spinoff

In response to declining sales, in 2017 the company launched a fast casual spinoff of its format called "Hoots". Hoots is distinguished from its original concept primarily by a reduction in menu items and employment of both male and female servers who are modestly dressed in t-shirts and khakis.

Hooters has sponsored the Major League Eating-sanctioned "Hooters Worldwide Wing Eating Championship" since 2012. Hooters has also licensed its name for the Hooters Road Trip PlayStation racing game. Furthermore, Hooters licensed the Hooters Calendar for Hooters Calendar Girl, a mobile wallpaper application, and Hooters Calendar Girl Tubin', a mobile game, both by Oasys Mobile. It was also one of several real world brands that appeared in the 2011 video game Homefront.

Since 1986, the restaurant has issued a calendar featuring Hooters Girls, with signings taking place in some of their restaurants. Since 1996, Hooters has held Miss Hooters International Swimsuit Pageant, a competition of Hooters Girls from around the world. The pageant once aired on Spike TV and is now livestreamed to Hooters restaurants and eventually posted on YouTube. An African-American woman won the Miss Hooters pageant for the first time in 2010: LeAngela Davis of Columbus, Ohio.

In 2001, a jury determined Hooters of Augusta Inc. willfully violated the Telephone Consumer Protection Act by sending unsolicited advertising faxes. The class-action lawsuit, brought in June 1995 by Sam Nicholson, included 1,320 others who said they received the advertising faxes from Hooters. Atlanta-based Hooters of America Inc., the local restaurant's parent company, paid out $11 million. The jury determined that six faxes were sent to each plaintiff. With a $500 fine for each, that amounts to a $3,000 award per plaintiff.

Also in 2001, Jodee Berry, a waitress at a Hooters in Panama City Beach, Florida, won a beer sales contest, for which the promised prize was a new Toyota automobile. However, the manager awarded her a "toy Yoda" instead, claiming the contest was an April Fool's Day joke. Berry filed a lawsuit against Gulf Coast Wings, the local franchisee, and later reached a settlement.

In 2004, it was found that job applicants to a Hooters in West Covina, California, were secretly filmed while undressing, prompting a civil suit filed against the national restaurant chain in Los Angeles Superior Court. The company responded to the incident with additional employee training.

In 2009, Nikolai Grushevski, a man from Corpus Christi, Texas, filed a lawsuit because Hooters would not hire him as a waiter. Grushevski and Hooters reached a confidential settlement on April 13. In September 2009, the US Equal Employment Opportunity Commission filed a lawsuit against a North Carolina charter airline (formerly Hooters Air, owned by Hooters of America) on behalf of Chau Nguyen, an Asian flight attendant fired three years prior after complaining only white workers were being promoted.

In May 2010, a lawsuit was filed against Hooters in Michigan after an employee was given a job performance review and was told that her shirt and short size could use some improvement by two women who held positions at the headquarters in Atlanta. Michigan is the only state that includes height and weight as bounds for non-discrimination in hiring. The plaintiff alleges that she was made the offer of a free gym membership and told that if she did not improve in 30 days, her employment would be terminated. The company denied that they threatened to fire the plaintiffs, and the suit was settled out of court.

In 2011, a number of former Hooters executives left to start the Twin Peaks franchise group. Hooters filed suit and alleged that former Hooters executives stole trade secrets and management documents as part as their move to the new restaurant chain.

In 2012, former employee Jheri Stratton filed suit after catching tuberculosis from one of her managers.

Also in 2012, Kisuk Cha, a Korean American immigrant who placed a takeout order at a Hooters in Queens, New York, sued the restaurant chain for racial discrimination after noticing a racial slur printed on a cash register receipt by a hostess who later confessed and subsequently resigned. The case was dismissed in 2013.

On April 2, 2015, former employee Farryn Johnson was awarded $250,000 after an arbitrator found that racial discrimination contributed to her termination. Johnson was terminated in August 2013 after her store manager (from the Hooters in Baltimore, Maryland) told her that she could not have blonde highlights in her hair. Johnson filed a civil rights complaint with the State of Maryland Civil Rights Division where her attorneys stated the applicability of the dress code for Black Americans and everyone else (e.g. non-Hispanic Whites, Hispanic/Latino, Asian/Pacific Islander American) where one set of policies pertains to a certain group of people was considered as racial discrimination. A statement from Hooters of America by Ericka Whitaker (Hooters of America senior brand manager) stated that she had no issue of having blonde highlights as a Hooters Girl prior to becoming a brand manager and the company will continue to diversify its employees, from the restaurant to the annual Hooters International Swimsuit Pageant.

On September 11, 2017, former Philadelphia-area Hooters waitress Jade Velez filed a lawsuit against Hooters alleging she was a victim of workplace sexual assault by a former kitchen employee. The lawsuit named the employee, three former managers at the Northeast Philadelphia Hooters restaurant where she worked, and Hooters of America, LLC et al as defendants. As of July 2020, the outcome of the case was still pending.

On July 16, 2019, Scott Peterson, who was one of two men who alleged they were sexually harassed by a male boss while working for Hooters in the Los Angeles area, reached a settlement with the restaurant chain in the Los Angeles Superior Court, though terms of the settlement were not publicly revealed. The other plaintiff, Paul "PJ" Cagnina, obtained a settlement in May 2017.

On August 22, 2024, Hendrick Motorsports of NASCAR announced that they would sue Hooters for $1.705 million plus unpaid sponsorship fees. On March 21, 2025, it was reported that Hooters agreed to pay $900K to Hendrick Motorsports.

On October 22, 2024, Hooters of America settled a claim from the Equal Employment Opportunity Commission that black employees were not recalled back to work after the COVID-19 pandemic at the same levels as white employees. Hooters paid $250,000 and signed a consent decree forbidding use of standards that allow for use of color or race.

Legal status

In employment discrimination law in the United States, employers are generally allowed to consider characteristics that would otherwise be discriminatory if they are bona fide occupational qualifications (BFOQ). For example, a manufacturer of men's clothing may lawfully advertise exclusively for male models. Hooters has argued a BFOQ defense, which applies when the "essence of the business operation would be undermined if the business eliminated its discriminatory policy".