TGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue

Restaurant concatenation TGI Fridays said Saturday it has revenge for bankruptcy protection arsenic it looks for ways to “ensure nan semipermanent viability” of nan casual eating brand

DALLAS -- Restaurant concatenation TGI Fridays revenge for bankruptcy protection Saturday, saying it is looking for ways to “ensure nan semipermanent viability” of nan casual eating marque aft closing galore of its branches this year.

The Dallas-based institution revenge for Chapter 11 bankruptcy protection successful a Texas national court.

TGI Fridays Executive Chairman Rohit Manocha successful a connection said nan “primary driver of our financial challenges resulted from COVID-19 and our superior structure.”

Sit-down concatenation restaurants person much broadly faced challenges successful caller years arsenic diners take to get nutrient delivered aliases sojourn upscale accelerated nutrient chains for illustration Chipotle and Shake Shack.

A U.S. bankruptcy judge successful September approved a reorganization plan for seafood concatenation Red Lobster aft years of mounting losses and dwindling customers.

Founded successful 1965, nan fame of TGI Fridays peaked successful 2008 pinch 601 restaurants successful nan U.S. and a $2 cardinal business, according to Kevin Schimpf, head of manufacture investigation astatine Technomic. Its income successful nan U.S. were $728 cardinal successful 2023, down 15% from nan anterior year, according to Technomic.

It now counts 163 restaurants successful nan U.S., down from 269 past year. It closed 36 successful January and dozens much successful nan past week.

TGI Fridays Inc. said it only owns and operates 39 restaurants successful nan U.S., which is conscionable a fraction of nan 461 TGI Friday-branded restaurants astir nan world. A abstracted entity, TGI Fridays Franchisor, owns nan intelligence spot and has franchised nan marque to 56 independent owners successful 41 countries. Those stay open.