The restaurant chain Hooters has announced that it has filed for Chapter 11 bankruptcy protection in a Texas court, after several weeks of attempting to resolve its financial difficulties. If you’re a frequent customer, here’s what you need to know about whether the company will close its restaurants or what will happen to them.
Will Hooters close its restaurants?
Recently, the company has closed several branches that it considered unprofitable. However, this does not mean the end of the brand, as the company aims to settle its $376 million debt by selling all of its corporate-owned restaurants to two Hooters franchisees, who currently operate 30 locations in states like Florida and Illinois. In this regard, it is expected that the chain will simply change ownership and continue to operate.
Why did Hooters file for bankruptcy?
In recent years, Hooters has faced economic difficulties due to inflation, high labor and food costs, and reduced consumer spending, leading to debt that was difficult to manage.
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How many Hooters restaurants are there?
Currently, the company owns and operates 151 locations, in addition to another 154 restaurants operated by franchises, mainly in the United States.
History of Hooters
The company’s history began on October 4, 1983, when its first restaurant opened in Clearwater, Florida. A year later, in 1984, Robert H. Brooks, along with a group of investors from Atlanta, acquired the franchise rights for the famous chain.
Over time, Brooks became the company’s majority shareholder and took on the role of president. Under his leadership, Hooters experienced impressive growth, expanding from a single restaurant to more than 425 locations worldwide.
The restaurant chain specializes in chicken wings, beer, and a variety of bar-type dishes. However, it is also known for the eye-catching uniforms worn by its waitresses. These employees, known as “Hooters Girls,” must meet strict appearance standards while on the job.
How to get a free appetizer at Hooters?
Through HootClub Rewards, the company’s loyalty program, which offers opportunities to receive exclusive offers and earn rewards with each visit. The more often you visit Hooters, the more points you’ll accumulate.
Points allow you to earn rewards. When you sign up, you’ll get a free appetizer, and after every 8 qualifying visits to participating restaurants, you’ll earn another free appetizer. To redeem your rewards, simply show your Hooters Girl the 7-digit code on your phone when paying.
Leveling up in HootClub Rewards is easy. Everyone starts at the Bronze level, but the more visits you make, the higher you’ll go, first to Silver, then Gold, and finally to Orange. Once you reach the Orange level, you’ll receive a $10 discount on your next visit for every 8 qualifying visits with a subtotal of $12 or more.
What is Chapter 11 of the U.S. Bankruptcy Code?
Filing for bankruptcy protection under Chapter 11 means that a company is on the brink of ceasing operations, but believes it can recover its success if given the opportunity to reorganize its assets, debts, and business operations.
By filing under Chapter 11, the company seeks protection from creditors while restructuring its business and debt. This type of protection is available to corporations, individual entrepreneurs, and partnerships. Under Chapter 11, the company’s management continues to oversee daily operations. However, major business decisions must be approved by the bankruptcy court.
