Restaurant chain TGI Fridays filed for chapter safety Saturday, saying it’s in search of methods to “make sure the long-term viability” of the informal eating model after closing a lot of its branches this 12 months.
The Dallas-based firm’s Chapter 11 submitting in a Texas federal courtroom accelerates a gradual decline for an iconic chain that was as soon as on the heart of American popular culture however has seen its buyer base dwindle as tastes modified.
The corporate has boasted that its bartenders educated Tom Cruise for his function within the 1988 movie “Cocktail.” Its serving workers’s button-filled uniforms, meant to evoke a enjoyable ambiance, have been later parodied within the 1999 satire “Workplace House” starring Jennifer Aniston.
TGI Fridays Government Chairman Rohit Manocha in a press release mentioned the “main driver of our monetary challenges resulted from COVID-19 and our capital construction.”
Sit-down chain eating places have extra broadly confronted challenges in recent times as diners select to get meals delivered or go to upscale quick meals chains like Chipotle and Shake Shack.
A U.S. chapter choose in September authorized a reorganization plan for seafood chain Purple Lobster after years of mounting losses and dwindling prospects.
Based in 1965 in Manhattan as a cocktail bar and restaurant, TGI Fridays expanded over the next a long time to change into an ubiquitous suburban gathering spot recognized for its ribs, potato skins topped with cheese and bacon, and a decor bedecked with pink stripes and Tiffany-style lamps.
Its empire peaked in 2008 with 601 eating places within the U.S. and a $2 billion enterprise, in accordance with Kevin Schimpf, director of trade analysis at Technomic. Its gross sales within the U.S. have been $728 million in 2023, down 15% from the prior 12 months, in accordance with Technomic.
It now counts 163 eating places within the U.S., down from 269 final 12 months. It closed 36 in January and dozens extra previously week.
TGI Fridays Inc. mentioned it solely owns and operates 39 eating places within the U.S., which is only a fraction of the 461 TGI Friday-branded eating places world wide. A separate entity, TGI Fridays Franchisor, owns the mental property and has franchised the model to 56 impartial homeowners in 41 international locations. These stay open.
