Do TGI Friday's Recent Closures Spell Disaster For The Chain?
Last week TGI Fridays locations in the U.S. suddenly went from 213 down to 164. This comes after closures in January of this year when TGI Friday's shuttered 36 locations. These most recent closures, coupled with the news that the company is meeting with new lenders in hopes of keeping it afloat as it deals with a potential Chapter 11 bankruptcy, is not a good sign for the future of the chain.
TGI Fridays, which started in New York City in 1965, was first known as a singles bar with good food and top tier bartenders. The chain became famous worldwide for its "flair" — pins the servers wore to initiate conversations with the customers — and a breezy, looking-forward-to-the-weekend vibe. Last year it revamped its menu with "bold and exciting flavors" like Truffle Tot-chos. This did not seem to work in the face of consumers choosing lower-cost dining options like fast food. Fridays is not the only full-service chain to struggle with new consumer spending habits as both Bucca di Beppo and Red Lobster have also recently filed for bankruptcy.
Multiple states lost locations and what's in the future for TGI Fridays
TGI Fridays closed locations in multiple states last week, with some cities losing the chain completely. According to local news agencies California, Ohio, New York, New Jersey, Florida and Missouri all lost locations. Columbus, Ohio and Buffalo, New York both no longer have any TGI Fridays locations. While it is down to 164 locations in the U.S., TGI Fridays still has hundreds of locations in over 50 countries worldwide.
Per CNN, in the near future the chain "will likely use Chapter 11 to seek a buyer for some portion of its business, to reject leases for unprofitable locations and to restructure its debt so it can emerge from bankruptcy with a smaller but still viable footprint," says Debtwire's John Bringardner. So, while we can expect more closures to come, TGI Fridays is holding out hope that it can survive bankruptcy. No word on if the brand will continue selling frozen food products, like the TGI Fridays mozzarella sticks that don't contain any mozzarella.