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Hooters Inc. and Hoot Owl Restaurants LLC Move Forward with Major Transaction

In a notable move within the restaurant industry, Hooters Inc. and Hoot Owl Restaurants LLC, collectively referred to as the Buyer Group, are making strides in their efforts to acquire more than 100 locations of Hooters of America (HOA). This transition comes at a challenging time, as HOA recently announced closures of multiple outlets, sparking concerns about the brand's sustainability. However, both enterprises are optimistic about their future, asserting that the acquisition plans remain on track and are expected to finalize by August 2025.

Current Landscape and Future Plans

According to recent statements, the Buyer Group, which consists of seasoned Hooters franchisees - including the founders of Hooters - operates over 30% of Hooters locations across the United States. They have successfully managed some of the highest-grossing restaurants in the Hooters chain, showcasing their adeptness in restaurant operations. The vision behind transferring ownership of these over 100 company-operated restaurants is to simplify HOA's business model while empowering experienced operators to lead these locations towards greater profitability.

As the acquisition unfolds, both Hooters Inc. and HOA anticipate that approximately 200 domestic and 60 international Hooters restaurants will continue their operations. This represents an impressive $700 million in systemwide sales, emphasizing the substantial market presence the Hooters brand holds. Post-acquisition, the Buyer Group is expected to manage around 130 locations, reflecting their commitment to rejuvenating the Hooters experience.

Restructuring Intentions

Hooters Brand Management, LLC (HBM), a subsidiary managed by the Buyer Group and other experienced operators, intends to streamline HOA’s operations by taking charge of many franchise support functions. This includes oversight of critical elements such as advertising, franchise development, and purchasing, allowing for a more cohesive operation moving forward. Moreover, as part of this restructuring, the Buyer Group plans to revitalize the Hooters brand by bringing back original recipes and uniforms that contributed to its early success.

Neil Kiefer, CEO of Hooters Inc., expressed confidence in finalizing the acquisition during the upcoming summer months, underscoring the commitment to make decisions that would best serve the remaining Hooters outlets. He shared, “We are excited to move forward into the next chapter of the Hooters brand.