Hooters Shuts Down Locations in Indiana Amid Bankruptcy Restructuring

Melbourne, Florida, USA - The recent wave of closures by Hooters has taken many by surprise, leaving diners in several states pondering the future of the iconic brand known for its wings and all-female waitstaff in orange uniforms. As of June 4, 2025, the restaurant chain has shut down over 30 of its company-owned locations, including significant sites in Indianapolis, Evansville, and Lafayette, Indiana, reflecting the chain’s struggles following its Chapter 11 bankruptcy filing in March. IndyStar reports that the decision to close these locations was deemed a „difficult decision,“ though the company remains committed to supporting affected employees as it transitions to a franchise business model.

Among the recently affected locations are those in Sanford, Orlando, and Kissimmee, Florida, alongside closures in Atlanta and Gwinnett, Georgia, and various areas throughout Michigan, Kentucky, Missouri, North Carolina, South Carolina, Tennessee, Texas, and beyond. In total, Hooters is now left with approximately 305 locations, comprised of 151 company-owned and 154 franchise-operated venues, as the company moves to sell all its corporate outlets to franchisees, as reported by Newsweek.

A Shift in Business Strategy

The rapid-fire shuttering of these restaurants is outlined as part of Hooters’ strategy to better position itself for the future amid rising costs and shifting consumer behaviors. Despite the closures, the restaurant chain insists it intends to continue operations while re-evaluating its business model. The company aims to emerge from its financial difficulties with a streamlined operation and stronger foundation that will better align with current market pressures, including inflation and decreased consumer spending habits. This move follows a trend observed in the casual dining sector, where rising labor and food costs have forced many chains to rethink their strategies. CNN notes how consumer sentiment is at a low, which could further challenge dining out options for many Americans.

Interestingly, Hooters had already anticipated the need to resize its footprint well before the bankruptcy filing, closing several underperforming locations throughout 2024. As part of its restructuring efforts, Hooters is expected to complete this transition within 90 to 120 days, pending bankruptcy court approval, with plans to focus primarily on an all-franchise model for its future operations. The goal is to establish a solid financial footing by offloading its company-owned outlets while offering support to displaced employees during the transition.

Wider Impact on the Dining Landscape

These closures are not just a singular issue for Hooters but reflect broader changes within the dining industry. Similar challenges have prompted other chains, like TGI Fridays, to navigate their own financial crises while attempting menu revamps and location closures. The push for more franchise-operated restaurants may enable Hooters to maintain its legacy and brand identity while adapting to the fluctuating market conditions. As the dust settles on these closures, it remains to be seen how Hooters will craft its path forward in a dining world that is evolving at an unprecedented pace.

For now, the fate of many staff and patrons across the nation hangs in the balance, as this storied restaurant tries to bounce back from these dire financial circumstances and re-emerge with a stronger model.