Hooters, If you don't get the food right, you shouldn't be in the restaurant business
Since 1983, customers have flocked to Hooters for the unbeatable combo of wings, beer, and the waitresses, known globally as Hooters Girls. For decades, this combination seemed unstoppable, leading to extraordinary success. By the mid-2000s, Hooters was a global phenomenon, boasting over 450 locations in nearly 30 countries, complete with its own calendar, casino, and even an airline.
However, beneath the seemingly flawless facade, the company was structurally divided into two separate entities: the original founders' company, Hooters, Inc., and the much larger franchiser, Hooters of America (HOA). This division proved critical when, in 2025, the larger HOA filed for bankruptcy and closed dozens of restaurants, signaling a dramatic collapse. Now, the original founders are stepping back in to try and rescue the brand.
How did one of America's most famous restaurant chains lose its mojo? We spoke to people who have been with the brand since the beginning, including Lynn Austin, the original Hooters Girl.
The Origin Story and Early Success
The legend of Hooters began in 1983 in Clearwater, Florida. Inspired, in part, by a Steve Martin comedy bit, six close friends—later known as the "Hooters 6"—set out to build a casual, family-friendly beach-themed restaurant. None of the founders initially knew how to run a restaurant, but they believed they could combine great food and atmosphere with a fun, carefree environment. Their initial goal was to create the go-to spot for watching games with beer and wings, served by an all-female wait staff.
Crucial to the early marketing was Lynn Austin, whom co-founder Ed Dsty hired after she won a bikini contest. The founders collectively decided the Hooters Girl would be the "star of the show."
The Hooters uniform, modeled after popular 80s athletic dolphin shorts and shirts, was designed to be sporty and connote the beach. According to the founders, this balance was key to early success: the uniforms were revealing, but "not to the point where you'd feel strange bringing a kid into the restaurant." Early, desperate marketing efforts—including Ed Dsty himself standing in traffic in a chicken costume—helped put the brand on the map.
Rapid Expansion and the Two Chains
In 1984, the brand expanded rapidly when restaurateur Hugh Connardy struck a deal to take the concept nationwide. This deal created the two distinct corporate chains:
- Hooters, Inc.: Owned by the original founders, maintaining control over locations in and around Tampa and Chicago.
- Hooters of America (HOA): The franchiser, run by Connardy and later, Bob Brooks, who is largely credited with scaling the brand globally.
Brooks, however, pushed Hooters in a more explicit direction, creating early tension.
In 1986, Hooters, Inc. capitalized on the growing interest in its waitresses by launching the now-famous Hooters Calendar. This wasn't just a revenue source; it became a recruiting tool, attracting talented women who saw Hooters as a pathway to exposure.
By 1991, Hooters had roughly 50 locations across the US, and Hooters of America reported revenues of over $100 million. For comparison, Applebee's, founded four years prior, reported nearly $60 million that same year. The food, particularly the secret-recipe chicken wings—the highest-ordered item—was also critical to the brand, staying true to its slogan: "Delightfully tacky yet unrefined."
Backlash, Lawsuits, and PR Victories
The mid-1990s brought backlash and legal challenges. Critics labeled Hooters a "breastaurant"—a term the founders reject—and the National Organization for Women (NOW) launched a campaign against the company, calling it sexist and exploitative.
In 1995, the Equal Employment Opportunity Commission (EEOC) publicly challenged Hooters’ policy of hiring only female servers, calling it sex discrimination. Facing what they estimated as a $22 million penalty, Hooters responded with a massive PR stunt: they rallied approximately 100 Hooters waitresses for a highly publicized march on Washington. This successful public outcry resulted in the EEOC quietly dropping the case in 1996 due to "limited financial resources," leading to a sales and growth "skyrocket" for the company.
The Airline and Casino Era
In the early 2000s, then-HOA chairman Bob Brooks embarked on ambitious, risky ventures:
- Hooters Air (2003–2006): An airline offering low-cost flights. Despite being well-run, it was forced to ground operations after just three years, leaving behind $40 million in losses due to rising fuel costs and competition.
- Hooters Casino Hotel (2006): A resort near the Las Vegas Strip. It began reporting losses by 2008.
Despite the failures of these side businesses, Hooters sales hit almost $1 billion that year.
The Decline and Private Equity Takeover
Just as the brand reached its peak, the 2008 recession hit, causing consumers to pull back on dining. From 2007 to 2010, Hooters sales tumbled 7.5%. Facing increasing competition from fast-casual chains and rival "breastaurants" like Twin Peaks, the Brooks family sold Hooters of America to private investors in 2011.
Insiders say this is where the brand began to falter. Former franchise manager Terry Moberly noted that the new HOA ownership tried to "sterilize everything" and redefine the brand to be "more like Applebee's."
HOA’s Key Missteps:
- Restaurant Redesign (2013): Took away the fun, tongue-in-cheek decor and marketing (like the free beer tomorrow signs).
- Recipe Changes: Switched the signature wing sauce to a margarine-based recipe instead of butter and decreased portion sizes.
- Failed Menu Diversification: Introduced a salad menu, a "misguided decision" intended to attract more female clientele.
Image Controversies and Bankruptcy
As the brand struggled financially, adherence to its strict image policy led to highly publicized legal issues. Hooters faced several high-profile racial discrimination lawsuits that resulted in settlements of hundreds of thousands of dollars. One notable case involved a Maryland Hooters Girl who was awarded $250,000 after being fired for having blonde highlights, with her manager allegedly stating, "Black people don't have blonde hair."
In 2019, HOA was sold again to two private equity firms. The company then took on $315 million in new debt just as pandemic-driven inflation caused food and labor costs to spike. In a final, desperate move to increase appeal, HOA changed the uniform to "thong shorts"—a cheekier style—which caused controversy and alienated female customers and families.
The consequences were dramatic: from 2022 to 2024, Hooters sales plummeted by 21%. By contrast, the rival chain Twin Peaks, which has always leaned into a more explicit strategy, saw its sales increase by nearly 20% in the same period. Hooters of America abruptly closed roughly 40 locations in 2024 and filed for bankruptcy in 2025, shutting down 30 more.
Reclaiming the Brand
During HOA’s struggles, the original founders at Hooters, Inc. continued to operate their locations successfully, sticking to the classic decor, uniforms, and butter-based recipes. Hooters, Inc. reported one of the best years in its history in 2024, with Forbes estimating their annual revenue at over $100 million—making more than double the average revenue of HOA's stores.
In November 2025, the original Hooters Group finalized a deal to acquire 111 Hooters of America restaurants, putting the brand back in the hands of its founders.
Their goal is to bring the company back to its roots: focusing on the quality of the food first ("If you don't get the food right, you shouldn't be in the restaurant business"), immediately returning to butter-based wing ingredients, and changing the uniforms back to a more modest style.
After four decades, the question now is whether the brand’s resilience and nostalgia factor can win over a new generation, restoring the "All-American Girl Next Door" brand that was lost in the pursuit of chasing trends.
About the Writer
Jenny, the tech wiz behind Jenny's Online Blog, loves diving deep into the latest technology trends, uncovering hidden gems in the gaming world, and analyzing the newest movies. When she's not glued to her screen, you might find her tinkering with gadgets or obsessing over the latest sci-fi release.What do you think of this blog? Write down at the COMMENT section below.
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