Hooters Closes Locations in Tennessee Amid Financial Struggles

News Summary

Hooters has closed over 30 locations across the U.S., with three restaurants in Tennessee shutting their doors as part of a restructuring effort amid financial difficulties. The closures, including popular spots in Murfreesboro, Memphis, and Nashville, come after the company filed for Chapter 11 bankruptcy. Moving towards a franchised business model, Hooters aims to improve financial stability, while the closures reflect broader challenges facing the restaurant industry, including rising costs and changing consumer preferences.

Tennessee

Hooters has closed more than 30 locations across the United States, including three restaurants in Tennessee, as part of its efforts to navigate financial struggles and restructure its operations. The decision was made in conjunction with the company filing for Chapter 11 bankruptcy in March 2025.

The affected Hooters locations in Tennessee include restaurants in Murfreesboro, Memphis (Downtown – Peabody Place), and Nashville (Downtown – Harding Place). These closures reflect a shift towards a franchise business model aimed at revitalizing the brand and improving financial stability.

Details of Closures

The recent closures are significant, impacting various states including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee, and Texas. Following the transition to a fully franchised model, Hooters plans to sell the remaining company-owned restaurants to franchise operators, marking a pivotal change in its business strategy.

The Murfreesboro location was a well-known establishment for diners seeking wings, sports, and casual dining experiences, contributing to the local food scene. Currently, the site stands vacant alongside other closed establishments in Rutherford County. The Downtown Memphis Hooters officially closed its doors on June 4, 2025, as part of the company’s long-term business strategy to reposition itself within the competitive restaurant market.

Industry Challenges

The closures at Hooters highlight broader challenges facing the restaurant industry today. Increasing food and labor costs, along with fierce competition and shifting customer preferences, have added pressure on many dining establishments. As many restaurant chains reevaluate their operations and customer outreach strategies, the closure of beloved local spots underscores these ongoing struggles.

Company’s Path Forward

In the wake of the closures, Hooters’ management has expressed appreciation for both team members and loyal customers, signaling a commitment to support those affected during this transitional period. The company aims to maintain its brand legacy while adapting to new business models that reflect current market realities.

As Hooters moves forward, focusing on franchising may offer a pathway to greater resilience and renewed growth potential. With a commitment to evolve and cater to changing consumer habits, the brand is focused on carving a niche in an ever-evolving restaurant landscape.

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Author: HERE Memphis

HERE Memphis

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