Hooters Inc. and Hoot Owl Restaurants LLC to Purchase 100 Hooters Restaurants from Hooters of America, LLC
The buying group, which includes the founders of Hooters, currently operates 14 of the 30 highest-grossing Hooters locations.
- Hooters Inc. and Hoot Owl Restaurants LLC, both successful Hooters franchisees, have reached an agreement to acquire over 100 Hooters restaurants from Hooters of America, LLC (HOA).
- The buying group, which includes the founders of Hooters, currently operates 14 of the 30 highest-grossing Hooters locations.
Hooters Inc., together with Hoot Owl Restaurants LLC, is set to acquire over a hundred company-owned Hooters restaurants from Hooters of America, LLC and its affiliates. The buying group, which includes the original founders of Hooters, currently owns and operates over 30% of domestic Hooters franchises.
These experienced franchisees operate 14 of the top 30 highest grossing Hooters outlets and have demonstrated a record of significantly higher average restaurant revenue compared to the locations currently owned by HOA. The transfer of over 100 company-owned restaurants to this group of veteran operators is expected to streamline HOA’s existing operations while maximizing the future success of these locations.
All existing Hooters franchise locations, both within and outside the U.S., will continue to be managed by HOA's franchise and license partners.
In tandem with the sale, Hooters Brand Management, LLC (HBM), owned by the Buyer Group and other experienced Hooters affiliates, has negotiated key terms of a management agreement with HOA. Under this agreement, HBM will assume most of Hooters' franchise support functions, including oversight of the national ad fund, the central purchasing organization, franchise development and support, and other vital franchise functions.
Neil Kiefer, CEO of Hooters Inc., expressed optimism about the impending transactions, stating that the Hooters brand would be returning to the hands of experienced franchisees. Kiefer believes that this move will position the Hooters brand for long-term success, bringing it back to its historic prominence.
Upon completing these transactions, the Buyer Group will own and operate approximately 70% of Hooters' domestic locations.
