Once a staple of America’s roadside dining scene, Hooters is now on the brink of collapse. The chain—known for its signature orange shorts, busty owl logo, and servers dubbed “Hooters Girls”—is buried under $300 million in debt and has started preparing for a possible bankruptcy filing. In early 2024, Hooters shuttered around 40 of its U.S. locations, a stark signal that its decades-long dominance in the casual dining space may be ending.

Hooters’ financial downfall mirrors a larger trend in the industry. Full-service restaurant chains like Red Lobster and TGI Friday’s have also filed for bankruptcy in the past year. Analysts point to pandemic-era losses and the inability to win over younger diners, who now favor more “adventurous” and Instagram-friendly experiences. For Hooters, which peaked at over 430 locations globally, this shift in consumer taste has proven especially difficult to overcome.

Founded in 1983 by six Florida men as a joke—incorporated on April Fools’ Day—Hooters quickly grew into a national sensation, selling chicken wings with a side of sex appeal. But today, the same formula that once drew crowds feels outdated. Experts say the brand’s reliance on “tame titillation” is out of sync with a generation raised on OnlyFans, where overt sexuality and consent awareness have reshaped expectations.

The company has made several attempts to adapt—like launching “Hoots Wings,” a more family-friendly offshoot with co-ed staff and traditional uniforms—but these efforts failed. Meanwhile, other breastaurant competitors like Twin Peaks are booming. With even more provocative uniforms and a cheeky menu that includes beers like “Dirty Blonde” and “Knotty Brunette,” Twin Peaks plans to open at least 10 new locations this year and is even preparing to go public.

While rivals expand, Hooters faces additional pressure from its legal history. The chain has repeatedly been sued for gender discrimination, weight-based firings, and racial bias. In one case, Hooters paid $275,000 to a Kentucky server who accused managers of harassment. In another, the company settled with the EEOC after a North Carolina location allegedly rehired only white and light-skinned women post-pandemic. Hooters’ legal troubles have added to its costs and tarnished its brand.

Even internal changes have backfired. A 2021 attempt to replace shorts with thong-like uniform bottoms led to viral backlash from employees on TikTok. “Love my job but don’t love wearing undies to work,” read one caption. The company quickly reversed the policy, further exposing its identity crisis.

Industry experts say the company’s biggest problem may be its refusal to pick a lane. “Hooters is Hooters,” said Jonathan Maze, editor in chief of Restaurant Business. “There is zero way that women are going to actively go into the restaurant. The logo is an owl deliberately designed to look like two breasts.”

Even downsizing may not be enough to save the company. Twin Peaks, for example, thrives in red states but has no presence in the Northeast or other liberal-leaning markets. If Hooters can’t perform in those areas, some experts say it should withdraw completely and focus on core regions—assuming it can even afford to.

The looming bankruptcy doesn’t just threaten a brand; it endangers jobs. Hooters employs more than 18,000 Hooters Girls worldwide—about 70 percent of its total staff. Some are already moving on. A Chicago strip club, Admiral Theatre, recently offered a $10,000 signing bonus for former Hooters Girls. Several have accepted the offer, citing better pay and fewer restrictions.

Ashley Williams, a former Hooters Girl, now makes up to $2,500 a night dancing at the Admiral—far more than the $150 she made serving wings. “Hooters is just too tame for today’s customers,” she said.

Halle Grogan, who worked at the Murfreesboro, Tennessee, Hooters as a teenager, described her experience as both eye-opening and traumatic. In one instance, a regular customer followed her into a restroom and exposed himself. When she reported the incident, her manager allegedly refused to remove the man, saying, “You signed up for this position. Look at what you’re wearing.” She quit days later.

Today, that same location still operates, but the parking lot is often empty.

Hooters once thrived by offering just enough sex appeal to be provocative but not explicit. Now, with culture evolving, competitors surging, and hundreds of millions in debt weighing it down, the chain is struggling to find its place—and may not survive much longer.