This Restaurant Chain Just Filed Bankruptcy: What It Means For Your Location
Bad news for TGI Fridays fans: The casual chain has just announced that it is declaring Chapter 11 bankruptcy. (While it would have been ironic had the company done so on a Friday, it actually waited for Saturday to file the paperwork.) Damn, just when we were looking forward to the new holiday cocktail menu (2023's was pretty OTT). Never fear, Fridays rewards members, if your location hasn't closed down yet, there's a chance it will stay open — at least for the immediate future. Sadly, if it was one of the numerous closures announced pre-bankruptcy, don't hold your breath.
The current TGI Fridays count stands at 163, down from a high of 601 in 2008 and around 270 earlier in 2024. Only 39 of these locations are owned by the parent company, however, while the rest are run by franchisees. The franchised locations aren't included in the filing, and there doesn't seem to be an immediate threat to the company-owned locations either, as they will be staying open while details of the bankruptcy are hashed out.
Nothing is guaranteed, but at this point the company is speaking positively about moving forward and restructuring rather than giving up and closing down for good. Further down the road, it's likely it will need to sell off some locations and non-renew the leases of franchisees who aren't turning a profit. Without a crystal ball, we can't really say what will happen for any given location or for the chain as a whole.
Why TGI Fridays has been failing
TGI Fridays is set to celebrate its 60th anniversary in 2025, so how does it find itself in such a pickle now? While millennials were blamed for killing off casual dining last decade, Fridays itself points the finger at a different culprit. Its current troubles, it says, began with the pandemic. While the chain did its best to pivot to a takeout-only model during this time (it even served cocktails to go with mini booze bottles), it never completely recovered from the financial blow. Additionally, it was hit hard by rising food prices and customers deserting the chain for upscale fast food alternatives like Shake Shack and Chipotle.
At present, TGI Fridays lists both its assets and its debts as being in the $100 million to $500 million range. Without specific numbers, however, we can't tell which one is greater. Nevertheless, the company is still in there swinging. Recently, it was introducing new menu items, so we won't give up on those 2024 holiday cocktails just yet.