In another indication that revealingly clad women are no antidote for casual dining’s traffic slump, the parent of the Bombshells breastaurant chain revealed same-store sales for the brand dropped 16.2% on a preliminary basis for the third quarter ended June 30.
The damage for RCI Hospitality Holdings was offset by a 1.7% rise in comparable sales for the company’s second business line, a group of strip clubs operated under a variety of names. RCI noted in releasing the early results Thursday that several of the nightclubs converted from a bring-your-own-bottles format to full liquor service during the quarter.
The company also disclosed how its operations were affected by Hurricane Beryl. After the powerful storm hit Houston on Monday, four Bombshells units there were able to open that day, and a fifth resumed operation on Tuesday. An RCI nightclub swung open its doors on Wednesday.
Another nightclub and four Bombshells in the area remain closed because they have no electricity. The company said some of the establishments sustained minor damage but are not expected to be taken offline.
RCI aired the preliminary results for Q3 in the wake of media reports that Hooters, another concept featuring scantily clad female servers, had permanently closed as many as 40 units across four states. The franchisor blamed the shutdowns on bruising market conditions.
With few exceptions, full-service restaurant chains have been struggling to offset a drop in traffic usually attributed to consumers cutting back because of steep increases in menu prices. The conventional wisdom holds that many patrons are continuing to spend the same amounts, but are doing so in fewer visits.
RCI is the parent of 60 establishments in total. After several rough quarters, the company is in the midst of a rejuvenation effort.
“We are going 'back to basics,' focusing on the core tenets of our capital allocation strategy, to concentrate on our core businesses, generate higher sales, cut costs, optimize underperforming locations, finish projects as fast and efficiently as possible, and buy back shares," CEO Eric Langan said in a statement.
The company is scheduled to reveal final Q3 results on Aug. 8.
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