Restaurant chain Hooters has abruptly shut down about 40 stores nationwide due to a challenging economic environment.

The company confirmed the closures to Nation’s Restaurant News on Monday, citing pressure from current market conditions including higher costs and customers becoming more discerning.

“With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant,” the firm said in a statement.

As of the end of last year, the chain had 293 restaurants, down 1.3 per cent compared to 2022 and down 12 per cent compared to 2018.

Last month, seafood restaurant chain Red Lobster closed more than 50 locations across the country and filed for Chapter 11 bankruptcy amid “financial and operational challenges”.

Up to 17 chains experienced a double-digit decrease in unit count from 2022 to 2023, according to Nation’s Restaurant News.