10 Changes Hooters Is Making To Rebound In 2025
Restaurants can be a lot of things, but controversial? It seems like that's pretty far down on the list, but back in 1983, six people got together, formed a plan to open a restaurant and — presumably — when someone pointed out that it would, in fact, be somewhat controversial, said, "Hold my beer." (Presumably.) Perhaps unsurprisingly, the concept that would turn into the love-or-hate chain that is Hooters got its start in Florida, but fast forward a few decades, and it's not going well.
To be clear, plenty of employees have spoken about what it's really like to work at Hooters, with many saying that it's a confidence-building, fun place where friends for life are made. Many would-be customers, though, have been less than impressed with the concept of a so-called "breastaurant," and in 2025, Hooters filed for bankruptcy.
While Hooters isn't the only chain to file for bankruptcy in a wildly fickle, post-COVID economy, there have been a number of signs that Hooters might not be around for long. That just starts with the fact that younger generations that are now growing into the age where they're the target clientele haven't exactly welcomed the concept with open arms. The company has been hit by a number of lawsuits over discrimination, too, and Hooters restaurants have been slowly but steadily disappearing. In spite of the filing, though, Hooters isn't giving up yet — so let's take a look at what those in charge are going to do turn things around.
Hooters is selling company-owned stores to franchise groups
There are a few different types of bankruptcy, and Hooters has filed for Chapter 11 protection. That essentially means that the company stays in business while hitting a massive reset button, and it's usually done when a company has debts it can't pay off. Those in charge are tasked with restructuring and reformulating the business model to get everything back in the black. If that doesn't happen, then things escalate. When that happens, the company goes out of business, and everything is liquidated, and at least some of those who are owed money will get paid.
When Hooters announced that it had filed for bankruptcy, it also announced that it expected things to be resolved in between 90 and 120 days. One of the biggest measures being taken is one that customers won't even see, and that's the sale of corporate restaurants.
At the time of the filing, the chain had 305 locations, and the corporate entity that had declared bankruptcy, Hooters of America, owned 151 one of those. Those 151 locations will be sold, and the restaurants will become 100% franchisee-owned and operated. There are a lot of beneifts to this: While the franchised stores still have all the name recognition that goes along with being part of a chain, indivudual owners are also able to target local advertising campaigns, become an integral part of their community, and take some of the costs and responsibilities off of the corporation.
The original founders of Hooters are taking control again
First, let's briefly explain how Hooters is owned. The corporation that filed for bankruptcy is called Hooters of America, and if you've been to Hooters, there's a good chance it was one of theirs. The original founders and owners kept a group of restaurants — mostly in Illinois and Hooters' home state of Florida — and still own that small percentage of Hooters restaurants under the name HMC Hospitality Group. That's led by CEO Neil Kiefer.
When Hooters of America announced it was going to be selling corporate-owned locations, buyers were already in place. That included HMC Hospitality Group, and it's worth noting that the locations owned by this company are different. Around the same time murmurs of bankruptcy started circulating, Kiefer stepped up to make a few things clear.
In an interview with Tampa Bay Business & Wealth, Kiefer stressed that the HMC and Hooters of America were two separate companies with separate finances and very different ways of doing things. HMC, he noted, was growing — and the idea is to take what's working for that division and expand it to the whole chain. In another interview with Bloomberg, Kiefer described that process as "a re-Hooterizaton" that will ideally bring all Hooters restaurants closer to what the founders' original vision for the chain was. In a nutshell, that means a more family-friendly place with a less risqué reputation.
More underperforming locations might close
While there's undoubtedly a lot of work to be done to pull Hooters out of the red, what does all of this mean for your local restaurant? It's complicated, and in the days immediately following the bankruptcy announcement, corporate and franchisees alike have been keeping mum on the fate of individual stores.
In the official announcement, Hooters of America stated that as far as customers should be concerned, it was business as usual and there were no plans to close any locations. Chapter 11 bankruptcy usually means business as usual from the customer point of view, but this came with a caveat. Also in the announcement was a footnote which stated the powers-that-be were "evaluating the Company's operational footprint as part of its financial restructuring process..." and reading between the lines, that suggests that there may be closures. In fact, insiders into the bankruptcy discussion say that this has been and is being discussed,and the consequences of those discussion will probably unfold over the coming months.
Hooters has been less-than-straightforward with announcements of restaurant closing before. In June 2024, it was announced that it was going to be closing some locations for underperformance, but at the time of the initial news release, there were no details given. Those details only came as local news agencies across several states started reporting on Hooters restaurants that were closing doors, and by the end of the year, around 40 had been shuttered.
The founder-owned group is opening new restaurants
Closing restaurants and consolidating debts for a company like Hooters is a huge undertaking, and experts have noted that doing those things at the same time is extra challenging. However, it's also worth noting that at the same time HMC Hospitality is acquiring a number of new restaurants from Hooters of America, it's also opening new ones.
That includes two new Florida restaurants that were announced at the end of 2024, along with other expansion plans. That's all encouraging for Hooters fans: Profitable restaurants will, after all, help right the ship, and shifting resources in the direction of profitability is, of course, a good thing.
However, it's worth noting that Hooters is going to have to do some serious thinking about expansion plans. In early 2025, the company announced plans to open in Newcastle, U.K. Previous attempts at breaking into the British market have failed miserably, with one Birmingham restaurant lasting just 18 months, and several others barely making the two-year mark. The Newcastle location would be the third currently open in the U.K., if Hooters execs can overcome the public backlash. Should they keep pushing ahead with expansion plans? Or should they be asking themselves whether or not it's a battle they want to fight?
Hooters plans on improving ingredients and menu items
Hooters has long been known for its wings, and there's no denying that there are a lot of different flavors on offer. However, in order to stay relevant, it can't just rest on decades-old laurels. When we ranked Hooters menu items, we found that there were some that were lacking. Some of those items are not only really easy to do really well — like the beer cheese and pretzels appetizer — but some were staple items that people are going to order, like the Lots-A-Tots. When customers are disappointed by basic menu items, they're just not going to come back.
Way back in 2013, Hooters turned 30. That came with a series of changes, including more attention that was being paid to the menu. Employees noted that most of the food came in bags, and that's not exactly the sort of freshness that customers expect. And that is going to lead to one of the biggest changes that Hooters is going to have to make to pull out of the 2025 bankruptcy. According to what HMC Hospitality Group CEO Neil Kiefer told Bloomberg, kitchens are going to be overhauled to be geared toward using fresher ingredients. Interestingly, one of the examples Kiefer gave is something that sheds some light on just why some customers may have given up on Hooters in the first place. Kiefer noted that going forward, Buffalo sauce would be made with real butter ... makes you wonder what it was being made with before!
Menu items will be standardized
There's a reason that chain restaurants are popular, and consistency is a huge part of it. If you're driving from New York to Arizona, you can stop at a McDonald's in every state along the way, get a Big Mac and fries, and know exactly what to expect. That is invaluable and creates some serious customer loyalty, and strangely, that consistency is what Hooters doesn't seem to have.
HMC Hospitality CEO Neil Kiefer spoke with Fox News about the changes planned for Hooters in 2025, and one of those changes is going to involve standardizing menu options across the board. We noticed something interesting about this, too. Many of the social media posts we've seen for Hooters have a footnote that things like sauce availability varies by location, which isn't unheard of for chain restaurants.
However, Kiefer noted that one of the things that was now going to be available across the board is Hooters' Original Sauce. The fact that something that's called a brand's "Original Sauce" isn't available at all locations is bizarre, and Kiefer also noted that given that this sauce is used in more than half of all menu items, this could mean major changes in kitchens that aren't already using it. Kiefer also noted in the video call that in some cases, menus were going to be trimmed down to be a much more manageable size, which could allow for a focus on quality over quantity.
Bikinis are out and a more family-friendly atmosphere will be in
Hooters has historically made a number of strategic decisions that has seen the chain move into the 21st century, including opening in retirement communities and targeting an older audience. Back in 2022, a rumor started circulating that Hooters was going to be rethinking things, and rebranding in a way that targeted the younger Millennials. A spokesperson for the company issued a statement that it wasn't true, but three years later, it seems the rumor is turning out to be a valid option for Hooters.
One of the things that HMC Hospitality CEO Neil Kiefer credits as being the reason for the success of the HMC-owned Hooters is a more family-friendly atmosphere. Those under the HMC umbrella are known for things like coloring books at the tables and servers who are trained to pay extra attention to children, which is a major contrast to other locations. There's a lot that's going to have to go into making Hooters family-friendly, and it includes — says Kiefer — taking earnings and reinvesting it into restaurants to make them cleaner, more modern, and more welcoming.
That's something that hasn't been done in all locations, and if your local Hooters is looking a little worse for wear, you might see some upgrades happening soon. Kiefer told Bloombergit's going to bring the chain more in line with what was envisioned for it in the first place, what made it successful, and what just might turn things around.
Staff will go through retraining
Going forward, it appears as though the goal is to create a chain-wide standard for Hooters. According to HMC Hospitality Group CEO Neil Kiefer, part of that — and part of making the chain more appealing to families, couples, and those with children — is going to be retraining, especially in the front of house. And it makes sense: If the new owners want to widen the customer base into something that's going to sustain business, they're going to have to close the gap between the family-friendly restaurants on one hand, and on the other, the restaurants that lean more into the risqué side of thing. That all starts when customers walk in the door.
While details were immediately scarce, there are some things that can be inferred from the information released. Given the focus that some Hooters locations have had on being very child-friendly, it's safe to suggest that there's going to be a new focus on server interaction with children. Kiefer has said that one of the key points to training servers and host staff is stressing the importance of greeting female customers first, and approaching tables within a minute of guests' arrival.
There are plenty of restaurants who make the staff do some pretty questionable things, and Hooters has gotten quite a bit of attention for the strict policies servers need to adhere to. How that will change remains to be seen, but watch this space.
The Hooters outfits are going to be reevaluated
It's no secret that historically, Hooters has been known for the iconic uniforms its servers wear. That has come with some major controversy, though, including a 2021 change that saw servers taking to social media to complain that they were being told they were no longer wearing shorts, but what looked like underwear. Other policies — like the fact that Hooters servers were required to buy tights, sometimes from vending machines in bathrooms — were just as controversial.
In a video call with Fox News, HMC Hospitality CEO Neil Kiefer said that one of the things they were going to be looking at in a Hooters makeover was the uniforms. He explained: "For over two years, we've been complaining. [But] we only had standing to complain. We couldn't rule how the [restaurants] were being run. ... Somewhere along the line, [Hooters of America] went to more revealing [uniforms], which to us does not jibe with a neighborhood restaurant that some families choose to frequent. ... You don't want to have a butt cheek in your plate."
While Kiefer didn't give details, other comments suggest that Hooters uniforms might be moving away from the barely-there coverings that had so many servers upset in 2021. He described the goal as "more of an athletic look," so you can surmise that might mean something like track shorts instead of bikini bottoms.
Expect to see a renewed focus on community involvement and charitable giving
One of the things that Neil Kiefer says is responsible for the success of the Hooters restaurants under HMC Hospitality's umbrella is that they focus on community and charity. He told Bloomberg that every year, about $1 million in donations gets put back into the communities the restaurants are located in, and added that they also encourage employees to volunteer with local organizations.
That's something you're likely to see more of, and it's worth noting that while Hooters has made a big deal out of its charitable giving, it's often in a much more abstract way. One of the major charities that Hooters has partnered with is the V Foundation, which supports cancer research. Hooters says that between 2002 and 2025, it raised $8.7 million in support of cancer research, that's mainly been done by selling calendars, pink drinks, and cards in the shape of Hooters uniforms.
That's great, but it's also not exactly the kind of volunteer work that gives any business a presence in the community. Kiefer says that going forward, Hooters will have a much larger on-the-ground impact on local communities. That's likely to mean things like volunteering at events and community non-profits, and it's another thing that will unfold over the course of the year — and beyond. If winning the hearts of the community will be enough for the chain to recover from bankruptcy remains to be seen.