Recent Developments in the Restaurant Industry: Shake Shack Closures, Hooters Lawsuit, and CEO Appointments
Explore the latest news in the restaurant industry including Shake Shack closing underperforming restaurants, Hooters facing a lawsuit over unpaid sponsorship, and CEO appointments at BJ’s Restaurants.
Photo by Ashley Knedler on Unsplash
Photo by Ashley Knedler on Unsplash
Shake Shack Announces Closure of Underperforming Restaurants
Shake Shack, a prominent player in the fast-casual dining scene, recently made headlines with its decision to close nine underperforming company-owned restaurants. This move comes as part of the brand's strategic evaluation to optimize performance within its 527-unit system. The closures, set to be completed by September 25, were attributed to the impact of changing trade areas and potential cannibalization of sales within the chain.
Photo by Ashley Knedler on Unsplash
Hooters Faces $1.7 Million Lawsuit Over Unpaid Sponsorship
In another development, Hooters found itself in legal trouble as NASCAR’s Hendrick Motorsports filed a $1.7 million lawsuit against the restaurant chain for failing to meet sponsorship obligations for Chase Elliott’s car in the NASCAR Cup Series. This lawsuit, initiated on July 30, revealed that while Hooters made an initial payment of $45,000 in March, subsequent payments were missing. The lawsuit highlights the importance of honoring contractual commitments in the realm of sports sponsorship.
Photo by Ashley Knedler on Unsplash
CEO Change at BJ’s Restaurants
The restaurant industry witnessed a series of chief executive officer changes, with BJ’s Restaurants being the latest to undergo such a transition. Following the departure of Greg Levin, the company appointed Bradford Richmond as interim CEO. This move, effective immediately, signifies a period of adjustment and strategic redirection for the chain. CEO shifts in the restaurant business often indicate a need for fresh perspectives and operational realignment.