In response to ongoing market pressures, renowned chicken wings brand Hooters has made the difficult decision to close several underperforming locations. The closure of roughly 40 out of 300 worldwide restaurants comes as inflation takes a toll on US consumers' spending habits.

Hooters cites "pressure from current market conditions" as the primary reason for shutting down select stores, following in the footsteps of other popular chains experiencing similar challenges. Last month, seafood chain Red Lobster closed 93 locations before filing for bankruptcy, while Applebee's, TGI Fridays, Boston Market, and California Pizza Kitchen have also recently shuttered their doors.

The number of Hooters locations has decreased by 12% since 2018, according to restaurant consulting firm Technomic. Meanwhile, competitors Twin Peaks and Dave & Busters have witnessed growth during the same period.

Despite the closures, Hooters remains optimistic about its overall brand resilience and relevance. The company continues to open new locations both domestically and internationally while expanding its presence through Hooters-branded frozen foods in grocery stores.

"We look forward to continuing to serve our guests at home, on the go, and at our restaurants here in the US and around the globe," stated a Hooters spokesperson.

This slated closure of underperforming stores aligns with the recent consumer trend of reduced restaurant spending. According to Census data, restaurant spending has decreased in four out of the past six months, with May recording the lowest monthly sales volume since October 2023 at $93.6 billion, as reported by the National Restaurant Association.

Furthermore, a survey conducted by consultant group KPMG revealed that 41% of consumers plan to spend less on restaurants this year, highlighting a significant shift from last year's intention to spend more. These factors indicate the ongoing challenges faced by the restaurant industry amidst rising dining costs.

Hooters' decision to close some of its stores reflects the brand's adaptation to a changing market landscape. While investors and patrons may question the impact on the company's long-term growth, Hooters remains confident in its ability to weather these difficult times and continue serving its loyal customer base both domestically and abroad.