Hooters Franchise Cost, Profit, & Failure Rate 2024

Are you looking for an exciting and rewarding business opportunity? Do you want to be part of a well-known brand serving delicious food and providing great entertainment since 1983?

Owning a Hooters franchise is the perfect way to capitalize on these opportunities. With over 400 locations worldwide, this restaurant chain is one of America’s most recognizable brands and beloved sports bars.

From its iconic logo and signature wings, to its engaging atmosphere, Hooters offers something unique to customers everywhere.

This guide will provide you with everything you need to know about how to become a proud owner of a Hooters franchise. We’ll explore what qualifications are needed, how much money it takes to open a location, and why being part of the Hooters family is so rewarding.

So, if you’re ready to join a team of passionate entrepreneurs with one goal – to provide customers with a memorable experience – then owning a Hooters franchise may be right for you. Let’s get started and see what it takes to make the dream of becoming a Hooters franchise owner come true!

Hooters Franchise

About Hooters Franchise

Hooters is a restaurant franchise. They provide the most flavorful food, a broad selection of drinks from our full bar, and the incredibly accommodating and iconic Hooters Girls; all of this ensures that our clients have the best time possible.

They have something for everyone with their large assortment of burgers, delectable sides, and hearty salads.

Moreover, They have never questioned the quality of anything at Hooters and have stayed loyal to our brand’s promise over the years.

They became a favorite hangout site for college students, working dads, and families.


Hooters History

Hooters History

Hooters first opened its doors in 1983 in Clearwater, Florida. The restaurant was founded by six friends who wanted to create a fun; casual dining experience focused on chicken wings and cold beer. The founders were Ed Droste, Gil DiGiannantonio, Billy Ranieri, Joe Redner, Ken Wimmer, and Dennis Johnson.

The Hooters concept quickly gained popularity due to its unique combination of good food and a playful atmosphere. Soon after opening its first location in Florida, the chain began expanding rapidly throughout the United States, with franchises opening across the country.

By 1997 over 300 Hooters locations were operating, and the brand had gained worldwide recognition as an iconic restaurant chain with a distinct personality.

Today, Hooters continues to be one of the most popular casual dining chains in the US, with more than 400 locations across the country.

The chain has expanded its menu beyond chicken wings to include various items such as salads, sandwiches, burgers, and Mexican food. In addition to its traditional restaurants, Hooters also operates several sports-themed franchises and an online merchandise store.


Franchise Model Of Hooters

Cost or FeesAmount or Percentage
Initial Investment  $956,500-$4,275,000  
Initial Franchise Fee$75,000  
Royalty-Fee5%  
Area RequirementMinimum 5,000 square feet
Total Outlets205 Units

Support & Training Of Hooters Franchise

Hooters will be there for you every step of the way, from location selection to continuous business assistance.

They’ll help you choose a location and build it, after which you’ll complete a training session designed to educate you on our business concept fully. 

Hooters can help you with real estate, advertising, marketing, training, supply chain, quality assurance, and any other challenges that may arise.

Knowing that Hooters is a trusted, well-known, and well-loved brand, you may invest in a piece of mind.


Hooters Franchise Revenue & Profit

Hooters Franchise Revenue & Profit

The revenue and profit of Hooters franchise outlet may vary from place to place, demand in the area, operating expenses, and more.

As per our research, however, a Hooters franchise owner makes $2,755,775 in sales annually on average.

As per an average profit margin of 15%, a Hooters franchise owner makes $413,366 in profit each year on average.

This is how we calculated the profit for Hooters franchise:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%2755775.00
Rent10.63%(292801.09)
Insurance5.31%(146400.55)
Salaries21.25%(585602.19)
Franchise Royalty Fees5.31%(146400.55)
Utilities2.13%(58560.22)
Cost of Goods Sold (COGS)26.56%(732002.73)
Labor (Variable)13.81%(380641.42)
Total (Expenses)85.00%(2342408.75)
Net Profit15.00%413366.25

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Hooters Concept And Menu 

Developing a concept and menu is one of the most challenging components of opening a restaurant.

It requires trial and error before you find something you like. You also assume that your customers are pleased with it. 

The Hooters franchise, on the other hand, will assist you in getting everything ready for you, including the practical concept and menu.


Failure Rate Of Hooters

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20161441440
2017144138-6
2018138132-6

For the Franchised outlets:

  • In 2016, the failure rate was (0)/144×100≈ 0.00%
  • In 2017, the failure rate was (6)/144×100≈ 4.17%
  • In 2018, the failure rate was (6)/138×100≈ 4.35%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2016193194+1
2017194200+6
2018200209+9 

For the Company-Owned outlets:

  • In 2016, the growth rate was (1)/193×100≈0.51%
  • In 2017, the growth rate was (6)/194×100≈3.09%
  • In 2018, the growth rate was (9)/200×100≈4.5%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2016337338+1
20173383380
2018338341-3

For Total outlets:

  • In 2016, the growth rate was (1)/337×100≈0.29%
  • In 2017, the failure rate was (0)/338×100≈0.00%
  • In 2018, the failure rate was (3)/338×100≈0.88%

According to the above-mentioned data, there is no failure rate for company-owned outlets as the outlets at the end of the year increased during the span of 3 years.

However, for the franchised outlets for Hooters grew from 2016 to 2018, showing a failure rate between 0.00% and 4.35%. On the other hand, for company-owned outlets, the growth rate of Hooters was lying in the range between 0.51% and 4.5% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Hooters franchise has expanded in the years 2016-2018, showing a total growth rate between 0.29% and 0.88%.


Payback Period Of Hooters

Based on the midpoint investment of the Hooters Franchise, which is $3,265,750, the payback period of the franchise is as follows:

AVERAGE INVESTMENT$3,265,750
AVERAGE REVENUE PER OWNER$2,755,775
AVERAGE PROFIT PERCENTAGE15%
AVERAGE PROFIT PER YEAR$413,366
AVERAGE PAYBACK PERIOD8 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 3265750/413,366 = 7.9 = 8 Years based on median

The average investment for a Panera Bread Franchise is $3,265,750.

With an average profit percentage of 15%, the average profit per year is $413,366.

Based on these figures, it will take approximately 8 years to pay back the initial investment for Hooters. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Qualifications Or Experience For Hooters Franchise

Hooters franchisees must have at least five years of restaurant experience and the ability to manage and operate at least three locations. 

To make their Hooters franchise a success, applicants must exhibit a high degree of business expertise and the requisite managerial skills. Franchisees should have a worth of $2 million to be considered.

The bar or restaurant franchise market offers several opportunities for entrepreneurs, such as franchises from Cava Franchise, Dave And Buster’s Franchise, Texas Roadhouse, Chili’s, and Wahlburgers franchise.


Hooters Comparison

CompanyHootersChili’s
Founded In19831975
Initial Investment$956,500-$4,275,000 $2,848,695 to $4,637,695.
Franchise-Fee$75,000$60,000
Total Outlet205 1610
Annual Revenue605 million$3,005.7 Million

Frequently Asked Questions 

Is Hooters a franchise

Yes, Hooters is an Atlanta-based operator and franchisor, and it operates in over 430 locations in 28 countries.

How much does a Hooters franchise cost?

To become an owner of a Hooters franchise, investors should expect to spend around $956,500-$4,275,000 and an additional $75,000 as a franchise fee.

Who is the Owner Of Hooters?

The current owner of Hooters is Chanticleer Holdings, Inc., which acquired the franchise in 2011 from CEO Coby G. Brooks (son of Robert Brooks). Chanticleer Holdings, Inc. is a Charlotte-based investment firm specializing in the restaurant industry.

Where is Hooters Headquartered?

Hooters is headquartered in Atlanta, Georgia, USA.

Who founded Hooters?

The founders of Hooters are  Lynn D. Stewart, Edward C. Droste, Gil DiGiannantonio, Billy Ranieri, Ken Wimmer, and Dennis Johnson.

How many locations does Hooters have?

There are more than 430 locations of Hooters worldwide.

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