Hooters Inc. and Hoot Owl Restaurants LLC, Two Leading Hooters Franchisees, Reach Historic Transaction with Hooters of America
Hooters Inc., in partnership with another successful Hooters franchisee, Hoot Owl Restaurants LLC (together, the “Buyer Group”), has reached an agreement in principle with Hooters of America, LLC and certain of its affiliates (collectively, “HOA” or the “Company”) to acquire over 100 HOA-owned Hooters restaurants. In addition, the parties have negotiated the key terms of a management agreement under which Hooters Brand Management, LLC (“HBM”), an entity owned by the Buyer Group and other parties with deep experience with the Hooters brand, will provide the majority of the franchise support functions on behalf of HOA.
The Buying Group is comprised of existing Hooters franchisees, including the original Hooters founders, who collectively currently own and operate over 30% of the domestic franchised Hooters locations. These highly experienced operators currently operate 14 of the 30 highest volume Hooters restaurants and in 2024 realized average restaurant revenue that are over double those of the HOA-owned restaurants. By transferring over 100 Company-owned restaurants to a group of operators who have each been in the Hooters system for over 30 years, HOA will be able to greatly simplify its existing business while also putting these stores in the hands of the best possible operators to maximize their future success. All existing Hooters franchise locations, including those restaurants located outside the U.S., will continue to be operated by the Company’s franchise and license partners.
In conjunction with the sale and to further streamline HOA’s business, HBM has also negotiated the key terms of a management agreement with HOA under which HBM will assume most of the franchise support obligations of Hooters, including oversight of the national ad fund, the central purchasing organization, franchise development and support and other key franchise functions. This is a critical step in simplifying HOA’s business, returning the Hooters brand operations and restaurants to the most experienced and successful Hooters franchisees and best positioning the Hooters brand for long-term success. Upon completion of these transactions, the Buyer Group will own and operate approximately 70% of Hooters’ domestic locations.
“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, CEO 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. On behalf of all Hooters employees, customers and franchisees, the Buyer Group is excited and optimistic about our future plans for the Hooters brand”.
The Buying Group is being represented by North Point Mergers & Acquisitions and Morrison & Foerster LLP is serving as their legal counsel.
About Hooters Inc.
Hooters Inc., founders of the Hooters concept, own and operate 22 Hooters Restaurants in Tampa Bay and Chicagoland and two Hoots locations in Chicagoland. For over 40 years, the Original Hooters group has been known for its World Famous Chicken Wings, fun atmosphere, and legendary service from the iconic Hooters Girls. For more information about Hooters Inc. please visit www.originalhooters.com or follow them on Twitter @originalhooters, Instagram @originalhooters and Facebook https://www.facebook.com/originalhooters.
PR Contact: Ilona Wolpin, Anoli Management/ Hooters Inc.
(954) 298-8784
ilonawolpin@anolimanagement.com
