For Hooters’ Original Founders, Saving The Chain Is A Higher Calling: “America Needs Us.”

Forbes

A group of Florida friends thought it would be fun to open a restaurant in the 1980s that “they couldn’t get kicked out of.” Now in their 70s, they’re buying back franchises with a plan to restore the brand—from the signature wings to the orange shorts—to its cheeky glory.  Read the full story on Forbes: https://www.forbes.com/sites/chloesorvino/2025/10/19/for-hooters-original-founders-saving-the-chain-is-a-higher-calling-america-needs-us/  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Today on Forbes, for Hooters Original Founders, saving the chain is a higher calling.

00:06Quote, America needs us.

00:09Last winter, Neil Kiefer, CEO of the Original Hooters Founders Group,

00:14heard that the franchisor and operator of the Florida-based restaurant chain,

00:19known as Hooters of America, was about to go bankrupt.

00:22So the 73-year-old Kiefer, a longtime friend of the three living co-founders of the chicken wing empire,

00:28called them up and laid their options on the table.

00:32The group's 22 locations in Florida and Chicago were averaging $4.7 million in annual sales per location, Kiefer explained,

00:41while Hooters of America's 150 locations were bringing in less than half that, $2.3 million each.

00:49Kiefer believed they could turn around the failing restaurants and made a bold proposal.

00:53He told them, quote,

00:54I can drop this whole thing and we'll just exist as we have in the territories we have,

00:59or we can take a bigger risk.

01:02The original group, Gil DiGian Antonio, who is 77 years old,

01:08Edward Droste, who is 74,

01:10and Dennis Johnson, also 74,

01:13told Kiefer they were in.

01:16Droste told Forbes, quote,

01:17Kiefer and the original Hooters crew could easily be enjoying their golden years on golf courses or the beaches of Florida.

01:34Instead, they are leading a deal to acquire 111 Hooters locations out of bankruptcy

01:39and planning to invest about $40 million into turning around the challenge chain.

01:45Kiefer, who was the co-founder's attorney when Hooters was founded in Clearwater, Florida in 1983,

01:51says the group feels an emotional connection to the chain and don't want to see the brand die.

01:55Kiefer says, quote,

01:57We had some soul-searching.

02:00We don't want to leave the Hooters world in the condition it is in.

02:02We have a moral obligation.

02:06Last month, a Texas bankruptcy judge gave approval for their plan,

02:10and the final step is expected as soon as this week.

02:13Kiefer is now embarking on a transformation.

02:16That will start, he says, with Hooters returning to a more wholesome image.

02:19Nearly half of the 30 highest-volume Hooters restaurants in the U.S. are operated by Kiefer's Hooters Inc. Group.

02:27The design hues to the original so-called, quote,

02:29Florida-themed beach shack vibe with servers, known as Hooters Girls,

02:34in tight white t-shirts and slightly longer orange shorts.

02:38Kiefer believes the private equity owners of Hooters of America,

02:41Nord Bay Capital and Tri-Artisan Capital Advisor,

02:44quote,

02:45over-sexualized the concept by leaning into its reputation as a, quote,

02:49restaurant.

02:52Kiefer's Group will acquire about 54 locations,

02:54while an operator called Hoot Owl LLC,

02:57which includes some of the first Hooters franchisees,

03:00will acquire another 57.

03:03Coming back for seconds at Hooters won't be easy.

03:06Dijian Antonio, who created the original Hooters menu,

03:10says, quote,

03:11If you had a bad day at work, you'd come into Hooters and feel good.

03:15If you had a great day at work, you'd come to Hooters and celebrate.

03:18They come back because the service is great,

03:20but the food has got to be there, too.

03:23So taking that back and making it right is going to be a challenge,

03:26but we're ready for it.

03:28Before the deal, the founders, Hooters Inc.,

03:31had estimated annual revenue of over $100 million,

03:34and healthy net profit margins that Forbes estimates at 7%.

03:38Tripling its footprint might supersize sales and profits,

03:42but it equally could be a disastrous financial drain.

03:46Hooters' bankruptcy follows several Chapter 11 filings

03:49from aging mid-sized restaurant chains in recent years,

03:52including Red Lobster, TGI Fridays,

03:55and Buca di Beppo,

03:56which have lost customers amid internal cost-cutting

03:59and an influx of new chains.

04:01Former chairman of Buca di Beppo

04:03and founder of Planet Hollywood, Robert Earle,

04:06acquired Buca di Beppo in 2008 for $9.7 million

04:09and owned it until it filed for bankruptcy in 2024.

04:14The Italian chain was then sold to its lender,

04:16Main Street Capital Corp., for $27 million.

04:20Earle says,

04:21Who would have the best chance of getting it back to scratch?

04:24It'd be the founders.

04:26But, Earle adds,

04:28For legacy brands, it's difficult to reinvent yourself.

04:32If it's just the same white shirt and orange shorts,

04:34it's not enough.

04:36For full coverage,

04:38check out Chloe Sorvino's piece on Forbes.com.

04:42This is Kieran Meadows from Forbes.

04:44Thanks for tuning in.

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