PIC PAGE

Listen to this article

Hooters of America said Central Pennsylvania is one of its top priority markets for expansion over the next year.


“We see the state of Pennsylvania having probably 20 to 25 stores. In Central Pennsylvania, I’d say four to five stores in that area,” said Mark Whittle, senior vice president of global development, citing the midstate and western Pennsylvania as targets.

The 32-year-old franchise brand, known for its Hooters Girls, had locations in Cumberland and York counties but closed those in early 2013. The franchise operator of those locations had multiple stores and other business interests and ran into financial difficulties, which impacted the brand locally, Whittle said.


He is confident that with the right locations, operators and the brand’s latest store prototype, which it rolled out in 2013, Hooters can thrive in this region.


“It’s a wide-open market,” he said.

There are a few Hooters restaurants in the Philadelphia region and south into Maryland, but most of Pennsylvania is wide open for expansion, along with Ohio.


Hooters operates 417 restaurants, including about 340 domestic locations and 192 corporate stores. It has stores in 25 other countries.


The expectation is to open a total of 15 to 18 franchises globally this year and 131 by the end of 2019, Whittle said. That includes at least 35 company stores.


Hooters has not yet nailed down franchisees for regional locations, he added. “Ideally, in the next year or sooner, we’ll get at least one partner.”

Once that happens, the brand is seeking high-traffic retail corridors — areas with big-box brands and other restaurants. The new prototype is about 6,400 square feet.


The upfront fee per restaurant is $75,000. There is a 5 percent royalty fee, and all franchisees pay 2.5 percent into a national advertising fund. Ground-up development, not including the land, typically cost about $2.2 million, Whittle said.


Conversion projects typically range between $800,000 and $1.7 million. The majority of recent openings for Hooters have been retrofits. The company is finishing its 75th corporate remodel; franchisees have remodeled about 15 locations.


The plan is to remake the entire system by the end of 2019.

“We are in more of a heavy growth phase,” Whittle said.

However, Hooters also recognizes that other large franchise brands, including Buffalo Wild Wings and Quaker Steak & Lube, are expanding. Dauphin County-based Arooga’s Grille House & Sports Bar, which is expanding through franchise locations, also is thriving.


“Competition never goes away,” he said. “From a competitive landscape, wings are a big part of the business. But it’s only about 40 percent of our total food sales.”

Growth in the wing and sports-viewing segments of casual dining are good for Hooters, said Whittle, who believes the brand can capture its fair share of the market in new regions.