Hooters Business Taken Over
Hooters’ niche is being overtaken by a rapidly growing restaurant chain. According to Technomic, a food industry research company, sales at Hooters were flat last fiscal year. However, Tilted Kilt Pub & Eatery saw an 18% increase in business, according to estimates.
Both companies use similar strategies: Find beautiful young women to serve beer or wings in modest costumes.
After more than 30 years, Hooters’ menu and costumes have become stale. Technomic reports that sales have declined by $132 million over the past 30 years, when they reached $960 million.
Hooters is currently focusing on improving its image while Tilted Kilt, and other “breastaurant”, rivals, are expanding rapidly.
According to Bloomberg, Tilted Kilt has 94 pubs in total — an increase of 14 from 2008. It plans to open 30 more locations this year. Technomic reports that Hooters has closed 40 restaurants over the past six years, and that it had 360 locations worldwide in 2013.
Tilted Kilt’s average per-restaurant sales are slightly lower at $2.33 million than Hooters’ $2.3million.
What is Tilted Kilt different from other new Products?
The pub is themed around Celtic themes and attracts younger people. Tilted Kilt customers are on average 36 years old. This is nine years less than average Hooters customer. Tilted Kilt is different because it offers a wider menu than Hooters with specials such as shepherd’s pie or Irish stew.
- According to Ron Lynch, president of Tilted Kilt, it’s the service that makes the money.
- Lynch stated that servers are what people visit to interact with, in a Bloomberg TV interview.
- They wear knee-high socks and short plaid kilts. Their bras are much more visible than Hooters’.
Tilted Kilt requires that applicants attend auditions where they will be required to dress up in the role and perform the act. While most waitresses work as waitresses, some are male and are employed to serve at the bar or bus tables.
Lynch explained to Bloomberg that HOST is a program for hiring exceptional talent. They must fit the costume and look great in it. We then interview them. They must have a charismatic personality.”
Tilted Kilt is not the only competitor to Hooters, but there are also other “breast” competitors like Twin Peaks, Ker’s Winghouse and Brick House Tavern + Tap.
Technomic reports that Twin Peaks’ 2013 sales rose 68% to $165million, an increase of 68% over the previous year. The chain also nearly doubled its location. The sales at the two last chains, which are the fourth- and fifth largest breastaurants in terms of sales, increased 11% during the same period.
