Sales at bars and restaurants in the U.S. have fallen in four of the past six months for the first time since the pandemic

Hooters is closing down dozens of underperforming restaurants as inflation takes a toll on the hospitality industry.

The sports bar-style restaurant chain has not specified how many locations are closing or released a list of affected outlets. However, local reports indicate that several dozen locations are shutting down in states including Florida, Kentucky, Rhode Island, Texas, and Virginia.

The chain cited tough economic challenges, including rising food and labor costs, as reasons for the decision.

“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” a spokesperson told CNN.

Several locations reportedly closed over the weekend, with others shuttering in recent weeks. As a result, Hooters now has 293 global locations — a nearly 12 percent decline since 2018, according to restaurant consulting firm Technomic.

Despite the closures, Hooters stated that the 41-year-old brand “remains highly resilient and relevant,” highlighting its new lineup of frozen food sold at grocery stores and new restaurant openings overseas.

“We look forward to continuing to serve our guests at home, on the go, and at our restaurants here in the US and around the globe,” the company said.

The closures come as inflation impacts the restaurant industry, with about one-third of all brand-name restaurant chains ending 2023 with fewer locations than they started, according to National Restaurant News.

Meanwhile, menu prices have risen by 0.4 percent at sit-down restaurants, according to the Bureau of Labor Statistics, while fast food restaurants have seen prices rise by 0.2 percent.

These price increases have led consumers to dine out less, with census retail sales data showing restaurant spending has decreased in four of the past six months for the first time since the pandemic began.

A recent survey by consultant group KPMG found that 41 percent of consumers plan to spend less on restaurants this summer compared to last summer, with only 21 percent saying they would spend more. On average, consumers said they would reduce their monthly spending on restaurants by 9 percent — more than any other category.

“Consumers are tightening their belts another notch as they hunt for discounts, and even some essentials are being impacted,” Duleep Rodrigo, KPMG’s US consumer and retail sector leader, said in the study. “We have already seen a few retailers lower prices, as they look to maintain the balance between their margins and demand.”

Hooters is not the only restaurant affected by inflation. In May, Applebee's announced plans to close at least 35 locations this year, while seafood restaurant Red Lobster is facing bankruptcy.