Clearwater-based Hooters Inc. and Hoot Owl Restaurants say they are on track to finalize a deal to acquire over 100 Hooters of America-owned restaurants.
The transaction, expected to close in August, follows recent announcements of store closures by Hooters of America. Both parties had anticipated these closures as part of a broader restructuring plan. After the transaction, about 200 domestic and 60 international Hooters locations will remain open, representing around $700 million in systemwide sales. The buyer group expects to operate roughly 130 domestic restaurants, about 65% of the U.S. footprint.
The buyer group includes original Hooters founders and longtime franchisees who collectively operate more than 30% of existing franchised locations and some of the highest-performing restaurants in the chain.
“Decisions about store closures are never easy,” said Neil Kiefer, chief executive officer of Hooters Inc., “but all parties are aligned in bringing the necessary resources to make the remaining restaurants as successful as possible.”
A new entity, Hooters Brand Management, will take on most franchise support responsibilities including advertising, purchasing and franchise development. The group also plans to reinvest in restaurant upgrades and bring back some of the brand’s original recipes and uniforms.
Legal counsel for the buyer group is Morrison & Foerster, with North Point Mergers & Acquisitions advising on the deal.