Hooters President and CEO Terry Marks had a decision to make. Thirty years ago, Hooters of...

Hooters President and CEO Terry Marks had a decision to make. Thirty years ago, Hooters of America had advanced a successful chain restaurant concept which combined “good food, cold beer and pretty girls.” After a period of rapid growth and a gauntlet of legal and community challenges, Hooters began losing ground to competitors in the expanding “breastaurant” sector in the 2000s. When Terry Marks took charge of the company in 2011, Hooters was faced with a choice: (1) it could emphasize a wholesome, neighborhood environment that would welcome men, women and families; (2) it could move in a more risqué direction and compete head-tohead with racier rivals; or (3) it could find some third way to position the brand in the highly competitive restaurant industry.

What would you do if you were in Terry Marks’ shoes? Would you move to make (or keep) Hooters more family friendly? Would you suggest making it edgier? Or would you make a different strategic choice?

Expert Solution

If I were in Terry Mark’s shoes I would have made strategic choices and decisions to ensure that Hooters is made more family friendly going forward. The reason for my choice is based purely keeping in mind the objective to ensure that the business is profitable and is able to clock healthy growth rates in future.

Millennials will be the next set of primary consumers for Hooters going forward. These consumers are not so much interested in the risqué proposition that Hooters offers to its patrons. Millennials are more interested in having a fun time with their friends and families in a place where the ambience is good and family friendly and most importantly the food is good.

To make Hooters more family friendly the restaurants will have to provide new menu and new décor. The new menu and the new décor should emphasize that fact that Hooter restaurants are perfect for family outings and fun outings where diners can expect warm and comfortable décor, along with excellent food.

This strategy will meet all the requirements, needs and expectations of its customers and business will start booming again.

keosha answered 1 year ago

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