Hooters has been slapped with a $1.7 million lawsuit over unpaid sponsorship money by NASCAR’s Hendrick Motorsports. Hendrick alleges the restaurant chain did not meet its obligation in sponsoring Chase Elliott’s No. 9 car in the NASCAR Cup Series.
Court filings show Hooters made a payment of $45,000 in March but has not made payments since. The $1.7 million figure is the remaining money in the contract, according to the lawsuit, which was filed on July 30. Autoweek first broke the news, reporting that Hooters was obligated to provide sponsorship payments in four installments of $437,500 each in March, June, August, and October.
Hooters does not comment on legal matters.
This lawsuit is the latest saga for the casual-dining chain. In July, Hendrick dropped Hooters as its longtime partner, stating the chain “failed to meet their business obligations.” The partnership began in 2017 and has included prominent branding on Elliott’s racing car and suit, as well as through a virtual chicken tender brand launched in 2022 called Chase Elliott’s Chicken Tenders.
In July, Hendrick Motorsports thanked Hooters for its partnership, but added, “Due to these unfortunate and unexpected circumstances, and despite extensive efforts on both sides to identify a workable solution, it became necessary for Hendrick Motorsports to end the relationship."
In June, Hooters closed dozens of underperforming stores, citing current market conditions. At that time, the company stated: “Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores. Ensuring the well-being of our staff is our priority in these rare instances. 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. We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”
According to Technomic Ignite, Hooters finished 2023 with 293 restaurants, a -1.3% change from 2022. The company had 333 locations at the end of 2018, marking a -12% decline since then. Its category competitors all grew last year, per Technomic’s data, including Dave & Buster’s (7.3%), Miller’s Ale House (8.9%), and Twin Peaks (12%).
Contact Alicia Kelso at [email protected]
