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    • TGI Fridays files for bankruptcy protection as restaurant struggles continue
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    TGI Fridays files for bankruptcy protection as restaurant struggles continue

    Online Niel Posted on

    Matt O’Brien
    | Associated Press

    Restaurant chain TGI Fridays filed for bankruptcy protection on Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.

    The Dallas-based company’s Chapter 11 filing in federal court in Texas accelerates a gradual decline for an iconic chain that was once close to the center of American pop culture but has seen its customer base dwindle as tastes have they changed

    The company boasted that the bartenders trained Tom Cruise for his role in the 1988 film “Cocktail.” The button-down uniforms of his office staff, meant to evoke a fun atmosphere, were later parodied in the 1999 satire “Office Space,” starring Jennifer Aniston.

    Rohit Manocha, executive chairman of TGI Fridays, said in a statement that “the primary driver of our financial challenges has resulted from COVID-19 and our capital structure.”

    Chain restaurants in general have faced challenges in recent years as diners choose to get takeout or visit upscale fast-food chains like Chipotle and Shake Shack.

    In September, a US bankruptcy judge approved a reorganization plan for seafood chain Red Lobster after years of mounting losses and shrinking customers.

    Founded in 1965 as a bar on Manhattan’s Upper East Side, TGI Fridays expanded over the next few decades to become a ubiquitous suburban hangout known for ribs, cheese-and-bacon-topped potato skins, and decor dressed in red and Tiffany style. the lamps.

    His empire peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its US sales were $728 million in 2023, down 15% from the previous year, according to Technomic.

    It now has 163 restaurants in the US, down from 269 last year. It closed 36 in January and dozens more in the past week.

    TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is only a small fraction of the 461 TGI Fridays-branded restaurants worldwide. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. They remain open.

    During the pandemic, TGI Fridays made an effort to expand into the delivery market by becoming a hub for so-called ghost kitchens, which have no storefronts and only prepare food for delivery. Among the main creditors owed money by TGI Fridays is delivery service DoorDash, according to Saturday’s bankruptcy filings.

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