Sports bar chain’s Chapter 11 bankruptcy takes new turn | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

When a chain like Red Lobster, TGI Fridays, or On the Border fails, you have to wonder where the chain went wrong. All three offer food with broad appeal, good value, and a pleasant atmosphere.

In addition, all three chains sell alcohol, which should prop up their bottom lines. Yet all of these seemingly popular chains filed for Chapter 11 bankruptcy protection. It’s not obvious what happened in each case.

Red Lobster got a lot of publicity for its all-you-can-eat shrimp promotion, which lost $11 million dollars. That was the classic attempt to sell $20 bills for $19 and make it up in volume.

In theory, the AYCE shrimp promotion was designed to be a loss leader that covered its costs with drinks, desserts, and other members of the party ordering other things. The problem is that when you offer cheap, AYCE shrimp, people tend to order that, eat until they can no longer stuff food in their face, and spend no other money.

Red Lobster did not file Chapter 11 bankruptcy because of the losses due to the shrimp promotion. That was more a symptom of the bad decisions management was making.

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TGI Fridays suffered a long, slow decline where the brand lost relevance. This is similar to what happened to On the Border, a chain that faced significant chain and local competition in most markets.

Another similar chain that just filed for Chapter 11 bankruptcy may have failed for a somewhat different reason.

Red Lobster has emerged from Chapter 11 bankruptcy.

Image source&colon; Red Lobster

The decline of the ‘breastaurant’

It always seemed odd that families would go to a restaurant whose premise was that waitresses wear short shorts and little tops enhanced by push-up bras. Yet for decades, this was a popular selling point. Sexism seemed to not matter, as long as the prices and wings were good.

And, to be fair, Hooters was just an explicit version of what was happening at many sports bars. It’s not uncommon for waitresses to dress provocatively at your local sports bar. However, the name Hooters made that more of a clear mission, which might be a little too much for 2025.

The Hooters approach, dubbed the “breastaurant” model, has thrived with Twin Peaks, a chain with perhaps a less direct name, or at least more plausible deniability. That chain is adding locations and changing some of its Smokey Bones barbecue locations to Twin Peaks.

More closings:

But, while Twin Peaks has figured out the correct cleavage-to-food-quality ratio, many other chains in the breastaurant space — such as Twisted Kilt and Bikinis — have failed.

Hooters may be a little too sexist

Writer Alex Bitter seems to nail Hooters’ problem in a recent visit to a location near Washington, D.C.

“I was surprised by how busy Hooters was in the late morning on a weekday. While there were plenty of empty tables, the bar was packed, mostly with what appeared to be middle-aged or older men,” he wrote.

That, of course, is what led to the chain’s problems. Its core customer base may have gotten smaller, but it’s still there, and it makes it hard for the chain to attract new customers.

Basically, it’s Mo on “The Simpsons” needing to get rid of Homer, Barnie, Carl, Lenny, and his other regulars every time he tries to transform his bar into something better.

Hooters won’t be closing, assuming a bankruptcy court judge signs off on a plan to sell the chain to a group led by some of its founders.

“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth. The foundation we’ve laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers,” said Neil Kiefer, CEO of Hooters Inc., on behalf of the Buyer Group.

The new owners also plan to improve the food and tone down the concept by dropping ideas like bikini nights.