TGI Fridays files for bankruptcy in the US to ‘ensure long-term viability’
As sit-down restaurants continue to struggle post-pandemic, yet another popular chain has rolled out a “disaster protocol” amid reports of mounting debt.
After years of continued decline, popular restaurant chain TGI Fridays has filed for bankruptcy protection, claiming it is looking for ways to “ensure long-term viability” after closing many of its locations this year.
The Dallas-based company filed for Chapter 11 bankruptcy protection in a federal court in Texas on Saturday.
“The main driver of our financial challenges was due to COVID-19 and our capital structure,” executive chairman Rohit Manocha said in a statement after the filing.
TGI Fridays continues to close restaurants, while another in Brick, New Jersey serves customers for the last time on Sunday
Sit-down restaurants have faced broader challenges in recent years as diners opt for food delivery or visit upscale fast-food chains like Chipotle and Shake Shack.
The popularity of TGI Fridays, founded in 1965, peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, said Kevin Schimpf, director of industry research at Technomic.
According to Technomic, U.S. sales reached $728 million in 2023, down 15 percent from the previous year.
It now has 163 restaurants in the U.S., up from 269 last year. It closed 36 in January and dozens more in the past week.
No official list has been released, but local media reports indicate that restaurants have closed in California, Ohio, New York, New Jersey, Florida and Missouri.
TGI Fridays has now completely exited two cities – Columbus, Ohio and Buffalo, New York – following the latest closures.
The popular casual dining chain is the latest to struggle as Americans, frustrated by higher menu costs, choose to eat at home more.
Other chains, including Red Lobster, Applebee’s and Hooters, have also closed locations.
Founded in New York City as a laid-back singles bar, TGI Fridays grew into one of the first casual dining chains.
Throughout the 1960s, 1970s and 1980s, it was known for its groundbreaking food and cocktails.
However, its image changed in the 1990s as it transitioned from an entertainment venue for young professionals to a popular dining destination for families.
TGI Fridays did not respond to DailyMail.com when asked for comment on the latest closures, the impending bankruptcy or which restaurants have closed.