Current:Home > NewsTGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue -AssetScope
TGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue
View
Date:2025-04-19 07:00:42
Restaurant chain TGI Fridays filed for bankruptcy protection 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 a Texas federal court accelerates a gradual decline for an iconic chain that was once near the center of American pop culture but has seen its customer base dwindle as tastes changed.
The company has boasted that its bartenders trained Tom Cruise for his role in the 1988 film “Cocktail.” Its serving staff’s button-filled uniforms, 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 resulted from COVID-19 and our capital structure.”
Sit-down chain restaurants more broadly have faced challenges in recent years as diners choose to get food delivered or visit upscale fast-food chains like Chipotle and Shake Shack.
In September a U.S. bankruptcy judge approved a reorganization plan for the seafood chain Red Lobster after years of mounting losses. Italian American food chain Buca di Beppo filed for bankruptcy protection in August.
Founded in 1965 as a bar on Manhattan’s Upper East Side, TGI Fridays expanded over the following decades to become a ubiquitous suburban gathering spot known for its ribs, potato skins topped with cheese and bacon, and a decor bedecked with red stripes and Tiffany-style lamps.
Its 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 sales in the U.S. were $728 million in 2023, down 15% from the prior year, according to Technomic.
It now counts 163 restaurants in the U.S., 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 just a fraction of the 461 TGI Fridays-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those remain open.
A United Kingdom-based franchisee, Hostmore, also sought debt protection in September and abruptly closed locations throughout that country after a failed takeover deal to acquire TGI Fridays.
During the pandemic TGI Fridays made an effort to expand into the delivery market by making itself a hub for so-called ghost kitchens, which have no storefront and only prepare food for delivery. Among the major creditors owed money by TGI Fridays is the delivery service DoorDash, according to Saturday’s bankruptcy court filings.
Another iconic U.S. sit-down restaurant, Denny’s, announced in October that it is closing 150 of its lowest-performing restaurants in an effort to turn around the brand’s flagging sales.
veryGood! (83)
Related
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- Eddie Murphy gives fans 'Shrek 5' update, reveals Donkey is 'gonna have his own movie' next
- 'The Notebook' actress Gena Rowlands has Alzheimer's disease, son says
- 'The Notebook' actress Gena Rowlands has Alzheimer's disease, son says
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- WWE Hall of Famer Sika Anoa'i, of The Wild Samoans and father of Roman Reigns, dies at 79
- Woman accused of killing friend's newborn, abusing child's twin in Pittsburgh: Police
- Two courts just blocked parts of Biden's SAVE student loan repayment plan. Here's what to know.
- Everything Simone Biles did at the Paris Olympics was amplified. She thrived in the spotlight
- Amazon wants more powerful Alexa, potentially with monthly fees: Reports
Ranking
- Travis Hunter, the 2
- Machine Gun Kelly and Megan Fox Are True Twin Flames for Summer Solstice Date Night
- First-round order and top prospects for 2024 NHL draft
- Hunter Biden suspended from practicing law in D.C. after gun conviction
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Euro 2024 bracket: Live group standings, full knockout round schedule
- Argentina vs. Chile live updates: Watch Messi in Copa América game today
- Alec Baldwin attorneys say FBI testing damaged gun that killed cinematographer; claim evidence destroyed
Recommendation
Olympic women's basketball bracket: Schedule, results, Team USA's path to gold
U.S. officials warn doctors about dengue as worldwide cases surge
Horoscopes Today, June 25, 2024
Travis Kelce reveals how he started to 'really fall' for 'very self-aware' Taylor Swift
A South Texas lawmaker’s 15
New Jersey man flew to Florida to kill fellow gamer after online dispute, police say
Horoscopes Today, June 25, 2024
Justin Timberlake Shares First Social Media Post Since DWI Arrest