Hooters is remaking its brand image after filing for bankruptcy in March. For years, the casual restaurant chain has been operated by two different companies: one owned by a private equity firm that emphasizes the brand’s sex appeal as a “breastaurant” and one that includes the original founders who say it’s actually “family friendly.” So how does Hooters plan to turn the brand around amid growing competition in the food industry?
Hooters CEO Outlines Pivot: Shifting Away from 'Butt Cheeks Hanging Out' Toward Family-Friendly Roots In a recent interview with The Wall Street Journal, Hooters Management Corporation CEO Neil Kiefer discussed the iconic restaurant chain's recent bankruptcy filing and his ambitious plans to revitalize the brand. After years of being split between two operating entities—one emphasizing its "breastaurant" sex appeal under private equity ownership, and another tied to the original founders promoting a more wholesome, family-oriented image—Hooters is poised for a unified turnaround. Kiefer, whose group includes the chain's founders, is leading the charge to reclaim and "re-Hooterize" the brand, focusing on better food, service, and a return to its "delightfully tacky" origins. The Bankruptcy and Divided Legacy Hooters filed for Chapter 11 bankruptcy in March 2025, burdened by approximately $376 million in debt, including $300 million from asset-backed bonds issued in 2014 and an additional $50 million in subordinated debt added in 2022. The chain, famous for its chicken wings and scantily clad servers known as "Hooters Girls," has struggled to recover from the COVID-19 pandemic. U.S. sales in 2023 reached $867 million, only a 1% increase from the previous year, according to market research firm Technomic. This stagnation reflects broader challenges in the casual-dining sector, where chains like Red Lobster and TGI Friday's have also faced bankruptcy. For years, the brand has been fragmented. Since 2019, private equity firms Nord Bay Capital and TriArtisan Capital Advisors have controlled most locations through Hooters of America (HOA), emphasizing the chain's risqué image to drive profits. Meanwhile, Kiefer's Hooters Management Corporation (HMC), which includes the original founders, has operated successful franchises in key markets like Chicago and Tampa, advocating for a family-friendly approach. This split led to inconsistencies, with Kiefer noting in the interview that his team "watched the deterioration of not only the execution of the brand, but also the sales" under private equity but were "helpless to do anything about them" due to legal constraints. The dual operations created confusion and reputational issues. "Today, because of social media, you can be affected in your area when you get associated with the wrong Hooters, so to speak," Kiefer explained. His group is now acquiring about 100 struggling locations as part of a $30 million buyout, aiming to consolidate control and advise franchisees on operations. Currently, Hooters operates 151 corporate-owned sites and 154 franchised ones, mostly in the U.S. The buyer group, including HMC and another franchisee, already controls over 30% of domestic locations, including 14 of the 30 highest-volume restaurants. Kiefer criticized the previous owners' focus on quick returns: "The last group of owners, to me, seemed more obsessed with their ROI, their return on investment. How quick can they get their money out of it? And they did, okay? So I think this entire brand going through a bankruptcy was totally unnecessary." Where the Brand Stands Now Founded in 1983 by six Florida men with no restaurant experience, Hooters started as a joke on April Fools' Day but grew into a global phenomenon, peaking at over 430 locations worldwide. The chain's signature low-cut tops and orange shorts for servers have long been central to its identity, but a 2021 uniform update under HOA—introducing more revealing "hot pants"—sparked controversy. Servers protested the change, which Kiefer described as over-sexualizing the brand: "They took it and made it, sexualized it." This shift alienated some customers and contributed to a perception problem. Kiefer recounted hearing for years, "Well, my wife wouldn't let me go in there." He emphasized that the original vision was always more wholesome: "The restaurant is actually family-oriented, and always has been." Despite the backlash, some servers defend the uniforms. Alli Lamb, a 21-year-old Hooters waitress in Boca Raton, Florida, told Fox News, "Everything's covered. Nothing's out that doesn't need to be out." The brand's current challenges include dated menus, run-down locations, and a failure to attract younger diners who seek "adventurous" and "exciting" experiences for social media. Inflation and rising food costs have exacerbated issues, leading to the closure of over 40 locations in 2024 and more than 30 in a single day in June 2025. The Rebrand Plan: 'Re-Hooterization' Kiefer's turnaround strategy, dubbed "re-Hooterization," centers on three pillars: good food, good service, and regular reinvestment in stores—areas he says were neglected under HOA. "There’s a noticeable difference," Kiefer said. "The food’s different, the service is different—I hope to correct it all." Key changes include ditching bikini nights and skimpy outfits in favor of more modest orange shorts. "You don't want to have a butt cheek in your plate," Kiefer quipped, adding, "The [shorts are] supposed to be sized to fit appropriately. They're supposed to be athletic, not so much sexual." He elaborated in the WSJ interview: "I don’t think you’re going to see a bunch of butt cheeks hanging out." The goal is to transform Hooters into a "beach-themed oasis" that's "delightfully tacky," updating run-down locations, shortening the menu, and emphasizing craveworthy items like wings with plenty of butter sauce. Kiefer plans to replicate the success of his Chicago and Tampa restaurants across the chain, making it more appealing to families and mainstream society. "Somewhere along the line," he noted, Hooters "went to the more revealing" style, which "does not jibe with a neighborhood restaurant that some families choose to frequent." A spokesperson for Hooters emphasized doubling down on "everything that made Hooters legendary: fun, crave-worthy food, unforgettable service, and a guest-obsessed experience." If approved by a bankruptcy judge in Dallas, Texas, Kiefer could oversee the entire U.S. operation, partnering with fellow operators to reopen about 50 shuttered locations. Challenges and Competition Despite optimism, Hooters faces stiff competition in the wing space and casual dining. Younger consumers, influenced by consent culture and access to explicit content via platforms like OnlyFans, may find the "titillating naughtiness" outdated. Meanwhile, rivals like Twin Peaks, with even skimpier uniforms (lingerie on certain days), are expanding, planning at least 10 new locations in 2025. Kiefer acknowledges the hurdles, including fixing tarnished perceptions and addressing lawsuits over the brand's image. However, he remains confident: "The over-sexualization of Hooters...tarnished the brand's image and created a perception problem." As the chain navigates bankruptcy, the focus is on returning to its roots—proving that Hooters can thrive as a fun, tacky spot for wings and beer, without the excess.