Hooters Franchise Model Shifts as Brand Closes 30 Company-Owned Locations

In a bold pivot, Hooters has closed more than 30 company-owned restaurants as part of a strategic move toward becoming a fully franchised brand. The closures, confirmed in a June 4 statement, mark a significant shift for the iconic restaurant chain, which says it is doubling down on a “pure franchise business model.”

“This difficult decision impacts only company-owned locations,” the company said in its announcement. “Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model.”

The move follows a March 2025 bankruptcy filing and reflects a broader trend in the restaurant industry — shifting operational burdens away from the corporate level and empowering franchisees to lead local growth. For some, the transition to a fully franchised system signals a new era for the brand — one where operators are no longer competing with corporate-owned locations and instead working together in a system built “by the franchisees, for the franchisees.”

While Hooters once boasted more than 420 restaurants globally, recent numbers tell a different story. As of April 2025, USA Today reported only about 300 Hooters locations remained — split almost evenly between corporate and franchised units. Now, with this shift, franchisees will take the lead.

That’s an appealing scenario for many operators. Fully franchised systems often create a more collaborative and transparent culture, where best practices are shared more openly and franchisees feel their voices are better represented in brand decisions. It also gives corporate teams the ability to focus on strategic support, development and marketing — rather than day-to-day operations.

Hooters says it remains committed to its fan base despite the closures. “Hooters is here to stay,” the company said. “With a stronger financial foundation and streamlined operations, we will be well-positioned to continue delivering the guest-obsessed hospitality experience and delicious food our valued customers and communities have come to expect.”

As the brand repositions itself under franchisee leadership, the future of Hooters may depend not just on wings and nostalgia — but on how well the brand can empower its franchisees to drive what comes next.