Shell-shocked. That was the reaction from the NASCAR community when Chase Elliott and Hendrick Motorsports parted ways with Hooters in 2024. The restaurant chain has become a staple on the No. 9 team since 2017, standing by through all the ups and downs. However, the longstanding relationship soured when the restaurant chain struggled financially, resulting in a legal battle over unpaid sponsorship fees. As Hooters’ problems became severe, it was clear that their time in the NASCAR world was numbered.

Fighting for survival, Hooters is reverting to its roots to deal with the increasingly competitive market. Taking a leaf out of McDonald’s book, the restaurant chain has a bold strategy in place, hoping that the pivot will save them from bankruptcy.

Chase Elliott’s former sponsor attempts to salvage a tough situation

They say desperate times call for desperate measures. And in Hooters’ case, that certainly appears to be the situation. It’s no secret that the restaurant chain is saddled with debt and its customer base has rapidly been shrinking over the years. Given their financial struggles, it’s not surprising that Hendrick Motorsports parted ways with the company last year after failing to meet its sponsorship obligations. However, it now seems like the founders have a bold plan in place to salvage what looks like a bleak situation.

In an attempt to widen its customer base, Hooters is aiming to get back to its family-friendly roots. Speaking about a change in approach, Neil Kiefer, CEO of HMC Hospitality Group, told Bloomberg, “There’s a noticeable difference. The food’s different, the service is different — I hope to correct it all.” In the past, the company has largely focused on a male-centric audience, which may have limited its appeal. That’s a situation Kiefer aims to rectify, saying, “You go to some parts of the country and people say, ‘Oh I could never go to Hooters, my wife would kill me.’ That’s depressing to us. We want to change that.”

Bubba Wallace’s sponsor, McDonald’s, has undergone a similar transformation in recent years. Compared to Hooters, the QSR chain has maintained a relatively ‘family-friendly’ image. This over $200 billion worth company is now actively pursuing an even broader market. For instance, they have introduced ‘Breastfeeding Friendly Restaurants’ in certain parts of the world, while baby care rooms have also been introduced. Some restaurants in Hong Kong also have a ‘PlayPlace’ for kids, and books are being distributed with Happy Meals.

Aaron Allen, a restaurant industry analyst, said, “For a business to be successful and sustainable, it helps to appeal to more than just men.” That’s the strategy Hooters is implementing, hoping to salvage what looks like a bleak situation for the company. Chase Elliott’s former sponsors have already seen over 40 locations shut down, but by creating a more inclusive atmosphere, which is being referred to as “re-Hooterization,” could the brand reinvent itself to appeal to families? Time will tell.

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Hendrick Motorsports and Hooters reach a settlement

It’s not how a longstanding relationship should have ended. But last year, an entity affiliated with Hendrick Motorsports sued Hooters for $1.7 million plus interest for alleged unpaid sponsorship fees. The complaint was filed against the restaurant chain on July 30th, 2024, as per the Mecklenburg County court records, just weeks after the company was dropped as a sponsor after failing to meet its financial commitments towards Chase Elliott’s No. 9 car.

Rick Hendrick’s team took Hooters to court for breaching their contract, as they were due to pay four installments annually amounting to a total of $1.75 million. As per court records, payments of $437,500 were due on March 10, June 10, August 10, and October 10, and while a $45,000 partial payment was made in March, the restaurant chain didn’t follow through in June. A statement released by Hendrick Motorsports read, “In recent months, however, Hooters has not been able to meet its business obligations to our organization,” justifying the teams’ decision.

However, it now seems like the legal battle is finally at an end. As per court records, Hooters has agreed to pay Chase Elliott’s team, Hendrick Motorsports, $900,000, less than half of what they were sued for by the team. With the restaurant chain pivoting to a more family-friendly approach, could we see them back in the NASCAR world eventually? It’ll be a long road ahead, but seeing the company’s name plastered on the cars, just like it did for Alan Kulwicki or Chase Elliott, will be a sight for sore eyes for long-term stock car racing enthusiasts.