Twin Peaks CEO calls Hooters' suit 'frivolous,' 'baseless'

Editor's note: This story has been updated with Hooters' comments on the lawsuit.

Twin Peaks chief executive Randy DeWitt called a lawsuit filed by Hooters of America LLC against Twin Peaks franchisee La Cima Restaurants “frivolous” and “baseless.”

The suit, which was filed in U.S. District Court in the Northern District of Georgia on Sept. 28, alleges that Joe Hummel — a former Hooters executive and La Cima’s current chief operating officer — stole trade secrets that would help his new company expand its system and compete with Hooters.

On Monday evening, Twin Peaks’ DeWitt responded to the charges, saying, “No one ever offered Twin Peaks any of Hooters trade secrets, and it’s ludicrous we would ever want them anyway. To think we would benefit from using their trade secrets seems preposterous to me.”

He went on to say that Twin Peaks developed its own “unique brand strategy, with systems and procedures that are unique to Twin Peaks. All of our franchisees, including La Cima, are required to use our systems and not use the strategy and systems from their previous company.”

According to the Hooters’ suit, Hummel “gained unauthorized access to [Hooters’] computer systems, misappropriated [Hooters’] trade secrets and confidential business information, and shared such information with La Cima.”

Hooters of America is the Atlanta-based parent company of the Hooters casual-dining chain, which has more than 435 units. Atlanta-based La Cima, established as a limited-liability company in June, plans to open 35 new Twin Peaks units in the Southeastern United States and is expected to compete directly with Hooters.

Both brands feature provocatively dressed waitresses and offer casual-dining-style menus that include sandwiches, chicken wings and salads.

Twin Peaks is based in Addison, Texas, and operates 15 units in Texas, Oklahoma, Kansas, New Mexico and Nebraska. Twin Peaks itself is not party to the lawsuit.

A phone call for comment was placed to what court documents list as La Cima’s place of business, but was not returned by press time.

Mike McNeil, Hooters' vice president of marketing and chief marketing officer, said: “For 28 years, Hooters has been one of the real success stories in the restaurant industry. The brand has become internationally recognized and an icon of popular culture. Based on our success, we certainly expect to have competition, and understand that imitation is inevitable and to an extent flattering. However, we feel that competitors need to follow the rules, and we intend to do our part through this legal action to provide our franchisee partners and employees with a fair and level playing field on which to compete."

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