Self-made entrepreneur reveals his simple plan to save TGI Fridays amid more restaurant locations closing
A self-made entrepreneur thinks he has a simple plan to revive the beleaguered restaurant chain TGI Fridays.
After years of continued decline, the chain filed for bankruptcy in early November. The number of locations has now fallen to fewer than 200, after nearly 50 closed the month before – and more earlier this year.
Bosses are using Chapter 11 protection to keep the business afloat while cutting costs and finding ways to ensure “the long-term viability” of the nearly 60-year-old chain.
One man offering them advice is Ray Blanchette, 58, who started as a trainee restaurant manager at one of their Philadelphia locations in 1989 before becoming CEO between 2018 and 2023.
He owns eight Friday locations – and has made an offer to buy nine more – and believes he has a master plan to bring the company back from the brink.
In conversation with the Wall Street JournalBlanchette said he wants to sell people an experience again.
He says the company is targeting people who look forward to relaxing with a cold beer, friendly staff and hearty American food.
Blanchette told the outlet, “This isn’t rocket science. You have to sell people a good time. We sell experiences, not messages.’
After years of continued decline, the popular restaurant chain filed for bankruptcy protection early last month
The chain’s atmosphere was strongly featured in the blockbuster film ‘Cocktail’ starring Tom Cruise, seen here, with some scenes filmed at the original TGI location in Manhattan
Ray Blanchette, seen here, first started as a trainee restaurant manager at one of their Philadelphia locations in 1989 before becoming CEO between 2018 and 2023.
According to Blanchette, his first restaurant attracted 2,000 guests per day and had weekly sales totaling $140,000.
He added: “The casual dining sector I grew up in was bursting at the seams. When someone got up to leave, I wanted another butt to push down in that chair.”
With impressive sales under his belt, he was eventually chosen to head the company’s European division before leaving in 2007 to head a casual dining restaurant holding company. He later returned to TGIs as CEO in 2018.
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 recent months.
Restaurateur Alan Stillman opened the first TGI Fridays in 1965 as one of the first singles bars.
The chain’s atmosphere was strongly featured in the blockbuster film ‘Cocktail’ starring Tom Cruise, with some scenes filmed at the original TGI location in Manhattan.
The company went public in 1983 and then returned to private ownership in 1989 when hotel conglomerate Carlson Companies bought it for $52 million.
A view of the exterior of the original TGI Friday restaurant, located at the corner of 63rd Street and First Avenue in 1976 in New York City
The company went public in 1983 and then returned to private ownership in 1989 when hotel conglomerate Carlson Companies bought it for $52 million.
Carlson sold the chain to private equity firms Sentinel Capital Partners and TriArtisan Capital Partners in a deal reportedly worth $800 million in 2014.
At the time, there were approximately 900 owned and franchised TGIs worldwide, with 70,000 employees.
The new owners then sold company-owned locations to franchisees to reduce debt, eliminating most locations by 2015.
That same year, sales fell 24 percent from 2008 levels to $1.5 billion and the number of stores fell to 480.
In 2019, Blanchette entered TGI restaurants as part of the reality TV show “Undercover Boss.”
He noted that much needed to be improved and said: ‘Repairs and maintenance are coming under pressure in the business world. Something in the chain is broken.’
Carlson sold the chain to private equity firms Sentinel Capital Partners and TriArtisan Capital Partners in a deal reportedly worth $800 million in 2014
Earlier this month, Blanchette made a $30.5 million offer to buy nine of the 39 bankrupt locations
In April, a plan was drawn up by TriArtisan to merge the company with the largest British franchisee, Hostmore.
The plan was to go public on the London Stock Exchange, with the $220 million deal hoped to stabilize its finances.
In June, TGI’s auditor warned that the chain was now running out of money to meet debt obligations.
In September it subsequently failed to meet its obligations and Hostmore withdrew from the deal, causing four top executives to resign. The company subsequently filed for bankruptcy.
Blanchette earlier this month made a $30.5 million offer to buy nine of the 39 bankrupt locations.
He also told the WSJ that he is in discussions to manage the company’s debt entity and is waiting to see if his bid for the restaurants will be the winner.
Blanchette added: ‘I’ve spent most of my career here. It is quite an oeuvre. I don’t want the brand to disappear.’