Hooters Taps Colliers to Lead Expansion
- Jul 30, 2010
July 30, 2010
By Allison Landa, News Editor
Hooters of America, Inc. has selected Colliers International to help spearhead an ambitious expansion agenda. The restaurant chain says it plans to increase its location count by at least 15 to 20 percent annually over the next several years.
Currently, Hooters has more than 455 locations worldwide, with restaurants in 29 countries on six continents.
“Hooters … plans to expand its footprint in all 29 of those markets,” Patrick Duffy of Colliers International told CPE. “In addition, Hooters has signed franchise agreements to enter Turkey, India and Japan as its first foray into those nations, and is starting to look for sites there. Hooters also has plans to enter other countries in which it does not currently have a presence.”
Duffy said there were several compelling reasons to expand at this time, including the fact that the costs of real estate is down substantially over what the company saw in 2004 to 2008.
“Now is an excellent time for tenants to negotiate long-term leases,” he said. “Existing Hooters restaurants have performed well through the global recession and the franchisees are confident that as the world economy improves, they will see stronger performance still.”
He added that it can be a challenge to explain the restaurant’s casual beach-theme concept to some people unfamiliar with the chain, but that that challenge can be overcome with education and collateral material showing what he called “the family and clean, fun atmosphere that Hooters provides. .. Hooters is one of the world’s most recognized brands and offers customers a place to unwind, watch some sports, eat some comfort food and be served by a smart, attractive, personable, iconic ‘Hooters girl.’”
The restaurant’s ideal locations range between 3,000 and 5,000 square feet, with a flexible design concept that alllows for freestanding or in-line locations.
“The real estate requirement of a Hooters restaurant … works in many different venues,” Duffy said. “For example, Hooters recently opened a restaurant in Prague in a building that was constructed in the 1300s.”
The first Hooters opened in 1983 in Clearwater, Florida.