Competition in the restaurant industry has intensified significantly in recent years. This is why both new and established restaurants must find innovative ways to stay relevant. One such name that has been following inventive ideas but still struggling is TGI Fridays.
After serving customers for six decades, the renowned restaurant chain faces an uncertain future following its financial struggles.
Highlights
- TGI Fridays is planning to close its 130 restaurants in the U.S.
- The development comes after the restaurant giant filed for bankruptcy last year in November.
- Increased competition and minimal results despite reinvention initiatives are the reasons behind TGI Friday’s decision.
TGI Fridays Struggles To Stay Afloat
Started in 1965, this fast-casual restaurant established its presence as a family-friendly eating spot that is built around a bar. This was a novel concept six decades back as TGI Fridays’ rivals were then having either of the two ideas. But over the years, many other restaurant players came into the picture with a similar offering.
Realizing the competition, TGI Fridays came up with different reinvention plans, such as unlimited appetizers. However, it did not prove beneficial for the restaurant chain as it filed for Chapter 11 bankruptcy in November last year. TGI moved to the U.S. Bankruptcy Court for the Northern District of Texas.
TGI Friday’s U.S. Chain Set For Turbulence
TGI Fridays operates in over 50 countries and has more than 700 restaurants worldwide, including franchises. Over the years, this restaurant has set up 56 franchises. TGI Fridays’ international and domestic operations are managed separately, meaning closures in the U.S. do not necessarily impact its global locations.
This is how the U.S. court filing will not affect TGI’s every global outlet. But one thing is certain after the bankruptcy filing move. Although TGI Fridays may eventually survive, the American food facility is set to shut down about 130 of its outlets in the U.S.
While the company has not yet released a full list of closing U.S. locations, it has secured financing to support its ongoing operations. This amount will be used by TGI Fridays to run the restaurants that will stay open and to pay for the ones that will ultimately shut down.
A Quick Look Into the Restaurant’s Journey
TGI Fridays was founded in 1965 in New York City as one of the first casual dining chains centered around a bar atmosphere. Its food facility has since then been focused on offering a celebratory atmosphere in a social platform where the spirit of ‘Friday’ is upheld.
The decision of TGI Friday to close more than a hundred restaurants across the U.S. throws light on the troubles of legacy brands in a competitive restaurant space. While the restaurant may function in other nations, its presence in the U.S. is set to shrink.
