TGI Fridays now operates only 85 outlets across the United States.
TGI Fridays: A Struggling Icon
Once a popular casual dining chain, TGI Fridays now only has 85 restaurants left in the USA, as of their latest website update. That's a steep drop from the approximately 270 US locations they boasted at the start of last year. The rapid decline continues as TGI Fridays' parent company filed for Chapter 11 bankruptcy last year, with only 164 locations open at the time.
However, they've kept closing stores throughout the bankruptcy process, with an additional 30 locations shutting down over the past month. Despite CNN's request for comment on the closures, TGI Fridays remained silent.
In their bankruptcy statement, the company pointed to the fallout from the pandemic as the "primary driver of our financial challenges." The statement also noted that they would use the Chapter 11 process to "explore strategic alternatives in order to ensure the long-term viability of the brand."
Since then, the company has sold numerous restaurants to franchisees, including to Ray Blanchette, the former CEO of TGI Fridays who returned to lead the struggling brand in January 2024. Blanchette plans to introduce a revamped menu by next month, with a focus on trends popular among Gen Z, fusion foods, and a larger emphasis on fresh-grilled steaks.
Blanchette also cited TGI Fridays' strong international presence, which has around 400 locations, as a sign that the brand can still be relevant. Despite this optimism, it's an uphill battle for TGI Fridays in the USA, which peaked at 600 locations in 2008.
Casual dining chains, catering mostly to lower and middle-income families, have been struggling as diners abandon them due to shrinking disposable income. This has forced several chains to file for bankruptcy in recent years, including Hooters, Bar Louie, Buca di Beppo, and On the Border. Sales at Denny's, Applebee's, Outback Steakhouse, Bonefish Grill, Red Robin, and Cracker Barrel are also dropping, and they are collectively shuttering hundreds of restaurants.
TGI Fridays made its debut in 1965 in Manhattan as a place for singles to meet each other. It was one of the first major chains to popularize the "happy hour" concept and features a wide array of American comfort food staples, such as chicken wings, potato skins, and hamburgers.
Its distinctive interior, characterized by Tiffany-style lamps and big red booths, and its bar, which is usually the focal point of a TGI Fridays, are instantly recognizable. The service staff's "flair," or pins and other decorative pieces on their uniforms, even became a joke in the 1999 film "Office Space."
Despite the challenges, TGI Fridays isn't giving up. Their continued efforts to reinvent their menu and maintain a strong international presence suggest that they're determined to make a comeback in the USA. However, the road ahead is long, with stiff competition and changing consumer preferences making it a daunting journey.
- TGI Fridays, once a popular causal dining chain, has faced significant challenges, reducing its US locations from about 270 to just 85, as reported on their latest website update.
- The parent company of TGI Fridays filed for Chapter 11 bankruptcy last year, with only 164 locations open at the time, further contributing to the decline.
- In an attempt to ensure the brand's long-term viability, TGI Fridays is exploring strategic alternatives, as mentioned in their bankruptcy statement, including the sale of restaurants and a focus on trends popular among Gen Z and fusion foods.
- The financial troubles of TGI Fridays are not isolated, as other casual dining chains like Hooters, Bar Louie, Buca di Beppo, and On the Border have also filed for bankruptcy due to changing consumer preferences and shrinking disposable income.
- TGI Fridays plans to introduce a revamped menu with a greater emphasis on fresh-grilled steaks, aiming to appeal to a younger demographic and adapt to evolving lifestyle trends in the food-and-drink industry.
