Yet it’s not just restaurant chains in this specific category that are feeling the pinch. So are a host of casual-dining bar and grills, says Roger Lipton, president of Lipton Financial Services, which specializes in the restaurant industry. “It’s a very competitive space, and they’re all battling for market share,” he says.
The alluring waitresses create a mixed message, Lipton says. Some men want to ogle them, but “some guys won’t bring their wives or kids. You lose some customers who are offended,” he says.
Since Hooters was acquired by two private equity firms, Nord Bay Capital and TriArtisan Capital Advisors in January 2019, Tristano expects they will focus on “improving the balance sheet first, and when they’ve made some success at the unit level, they’ll look to invest money for renovation.” Each renovated location usually spikes revenue by 10–15 percent the next year, he adds. Tristano also predicts that under-performing locations will be closed.
Hooters’ concentrating on delivery to spike sales
Recently in the press, Hooters CEO Terry Marks discussed the chain’s need to make some changes. He’s stepped up Hooters delivery, which has been a revenue booster for many chains.
Marks said Hooters’ delivery revenue has grown by more than 30 percent in one year. The brand has also improved its menu by offering smoked wings and more craft beer options.
Tristano believes Twin Peaks will continue to expand, grow its market share, and take market share away from Hooters.
Twin Peaks has grown to 83 eateries, located in 26 states, with 28 company-owned units and 55 franchised. It opened two new outlets in 2018 and is slated to debut four locations in 2019.