Restaurant chain TGI Fridays filed for chapter safety Saturday, saying it’s searching for methods to “make sure the long-term viability” of the informal eating model after closing lots of its branches this 12 months.
The Dallas-based firm’s Chapter 11 submitting in a Texas federal court docket accelerates a gradual decline for an iconic chain that was as soon as on the middle of American popular culture however has seen its buyer base dwindle as tastes modified.
The corporate has boasted that its bartenders skilled Tom Cruise for his position 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 Area” starring Jennifer Aniston.
TGI Fridays Govt Chairman Rohit Manocha in an announcement stated the “major driver of our monetary challenges resulted from COVID-19 and our capital construction.”
Sit-down chain eating places have extra broadly confronted challenges lately as diners select to get meals delivered or go to upscale quick meals chains like Chipotle and Shake Shack.
A U.S. chapter decide in September accredited 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 many years to change into an ubiquitous suburban gathering spot recognized for its ribs, potato skins topped with cheese and bacon, and a decor bedecked with crimson 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 prior to now week.
TGI Fridays Inc. stated 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 around the globe. A separate entity, TGI Fridays Franchisor, owns the mental property and has franchised the model to 56 impartial homeowners in 41 nations. These stay open.