TGI Fridays closing 130 US stores due to bankruptcy

TGI Fridays, a well-known restaurant chain in the United States, is closing 130 of its stores. This decision follows the company filing for bankruptcy protection in November 2024. The restaurant chain has struggled with poor sales and changes in dining trends, especially since the Covid-19 pandemic began. The closures have affected locations across various states, including New York, New Hampshire, Maryland, Massachusetts, and Ohio. Signs on the closed doors explain that it was a "difficult decision." Back in October 2024, around 50 TGI Fridays locations had already closed in a single week, marking a serious decline for the brand. Since 2008, TGI Fridays has shut down about 55% of its U.S. locations. During this same period, the company’s sales have dropped by over 60%. A failed merger with the UK franchisee Hostmore led to a loss of control over many assets for TGI Fridays. Currently, only about 39 stores are part of the bankruptcy process, with plans to potentially sell nine to the restaurant operator Mera Corp. for $34.5 million. Despite these challenges in the U.S., TGI Fridays still operates nearly 400 locations worldwide, mainly under franchise agreements. The former CEO, Ray Blanchette, has returned to help manage the international franchises during this tough time. The future of TGI Fridays in the U.S. remains uncertain. The restaurant chain, often found near shopping malls and movie theaters, has been a staple of casual dining. However, preferences have shifted, with younger diners leaning towards fast casual options and delivery services. TGI Fridays executives pointed out that the financial difficulties are largely due to the Covid-19 pandemic and their capital structure. More broadly, sit-down chain restaurants have been facing increased challenges as customers seek faster and more convenient dining experiences.