Hooters Inc. and Hoot Owl Restaurants, two of the largest Hooters franchisees, have agreed in principle to acquire more than 100 company-owned restaurants from Hooters of America.
The buyer group includes original Hooters founders and franchisees who currently operate about 30% of the brand’s franchised domestic locations. These operators run 14 of the top 30 highest-grossing Hooters restaurants, with 2024 average revenues reportedly more than double those of company-owned locations.
The transaction is expected to shift most locations into the hands of veteran franchisees, simplifying the business model and positioning the brand for long-term growth.
As part of the agreement, the newly formed Hooters Brand Management—backed by the buyer group—will take over key franchise support functions, including oversight of national advertising, purchasing, development and franchisee support.
“For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand,” said Neil Kiefer, chief executive officer of Hooters Inc. “As a result of these transactions, the Hooters brand will once again be in the hands of highly experienced Hooters franchisees, and we will be well-positioned to return this iconic brand to its historic success.”
Upon closing, the buyer group will own and operate roughly 70% of Hooters’ U.S. locations. Franchise and license operations outside the U.S. will remain under current agreements.
Kiefer continued. “On behalf of all Hooters employees, customers and franchisees, the Buyer Group is excited and optimistic about our future plans for the Hooters brand.”
North Point Mergers & Acquisitions is advising the buyer group, with legal counsel provided by Morrison & Foerster, with attorneys Benjamin Butterfield, Chuck Cotter, Joe Sulzbach and Matt Ferry.
“Hooters Inc is excited to lead a ‘re-Hooterization’ of the brand and get back to the basics of what has made us successful for over 40 years,” Kiefer said. “From the original recipes of our world-famous menu items to the legendary service of the iconic Hooters Girl, we look forward to getting the brand best positioned for long-term success.”
Hooters Inc., founders of the Hooters concept, own and operate 22 Hooters Restaurants in Tampa Bay and Chicago and two Hoots locations in Chicago.