As restaurants continue to struggle post-pandemic, another popular chain has implemented a “disaster protocol” amid reports of mounting debt.
After years of steady decline, popular restaurant chain TGI Fridays has filed for bankruptcy, saying 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 Texas federal court on Saturday.
“The main driver of our financial challenges was COVID-19 and our capital structure,” Chief Executive Rohit Manocha said in a statement following the presentation.
TGI Fridays continues to close restaurants; another in Brick, New Jersey, will serve customers for the last time on Sunday.
Sit-down restaurant chains have faced broader challenges in recent years as diners opt to get food delivered or visit upscale fast-food chains like Chipotle and Shake Shack.
Founded in 1965, TGI Fridays’ popularity peaked in 2008 with 601 restaurants in the United States and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic.
Its sales in the United States were $728 million in 2023, 15 percent less than the previous year, according to Technomic.
It now has 163 restaurants in the United States, up from 269 last year. It closed 36 in January and dozens more last week.
No official list has been released, but local media reports show restaurants have closed in California, Ohio, New York, New Jersey, Florida and Missouri.
TGI Fridays has already completely abandoned two cities: Columbus, Ohio and Buffalo, New York, after the latest closures.
The popular casual restaurant chain is the latest to struggle as Americans, frustrated by higher menu costs, opt to eat more at home.
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 evolved into one of the first casual dining chains.
During the 1960s, ’70s and ’80s, it was known for its pioneering food and cocktails.
However, the 1990s saw a change in its image as it went from a nightlife spot 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, its impending bankruptcy or which restaurants have closed.
