(SQAUK) — In a stark reminder of the mounting challenges confronting the American dining industry, two iconic chains—Pizza Hut and Hooters—have announced the closure of multiple locations across the United States. Pizza Hut is set to close 128 restaurants operated by franchisee EYM Group, while Hooters plans to shutter over a dozen underperforming locations as part of its long-term restructuring efforts.
The news comes as many long-established brands, once cornerstones of the American casual dining sector, are battling changing consumer habits, increased competition, and rising operational costs. Pizza Hut and Hooters have enjoyed widespread success over the decades but now need help to adapt to a rapidly evolving market.
Pizza Hut, a brand synonymous with American fast food, has been a staple in the U.S. since the 1950s. However, the chain has faced significant challenges in recent years, from the rise of food delivery apps to increasing competition from established pizza giants and trendy new competitors.
According to reports, franchise operator EYM Group will close 128 Pizza Hut locations due to financial difficulties exacerbated by the broader economic environment. The closures reflect franchisees’ struggles to maintain profitability as the dining landscape shifts.
The decision to close these locations signals deeper issues within the brand, which has been gradually losing its market share. Despite ongoing efforts to modernize its operations, including investments in digital ordering and delivery services, Pizza Hut has struggled to compete with more agile pizza brands like Domino’s and Papa John’s. The rise of third-party food delivery services has also chipped away at the market Pizza Hut once dominated, as consumers increasingly opt for alternatives that offer faster, more flexible options.
Meanwhile, Hooters, the casual dining chain best known for its chicken wings and “breastaurant” branding, has confirmed that it will close over a dozen locations across the U.S. Like Pizza Hut, Hooters has seen a decline in foot traffic, with the company’s iconic brand losing some of its appeal to younger generations.
Hooters’ closures are part of a broader restructuring plan to reduce underperforming locations and streamline operations. The company has struggled with changing social attitudes and evolving dining preferences, particularly among millennials and Gen Z, who tend to favor more health-conscious, fast-casual dining options.
The company has experimented with new concepts, including fast-casual spinoffs and a focus on delivery services to remain competitive. However, these efforts have yet to translate into the widespread success needed to offset declining revenue from traditional locations.
The closures of Pizza Hut and Hooters are not isolated incidents. Instead, they represent a broader trend affecting many of America’s beloved casual dining brands. Economic factors, such as rising labor and food costs and a consumer shift toward convenience and healthier dining options, have made it increasingly difficult for these traditional businesses to stay afloat.
As iconic brands close locations and rethink their business models, the American dining landscape continues to evolve. For now, the fate of chains like Pizza Hut and Hooters underscores the challenges facing the broader industry as it navigates an uncertain future.
