TGI Fridays is about to undergo a significant shake-up, as the iconic casual dining chain announced plans to close 25% of its locations in the U.S. by the end of 2024. For those who grew up with Fridays as a staple of American dining—or as the backdrop for Tom Cruise’s famous bartender stunts in Cocktail (1988)—this news hits hard.
With approximately 50 restaurants set to close, the closures will impact customers and employees alike, particularly in New Jersey and Massachusetts, which are seeing the most closures.
The Downturn in Casual Dining
Like many restaurants, TGI Fridays has been grappling with financial difficulties exacerbated by the struggling U.S. economy. Rising inflation, labor shortages, and increased food costs have hit the entire casual dining sector, which already operates on tight margins.
Customer traffic has been in decline for years, and the shift towards delivery services like DoorDash—further accelerated by the pandemic—has reduced foot traffic in sit-down chains. TGI Fridays, once a leader in the casual dining industry, now faces the same pressures affecting its competitors.
At its peak, the chain operated over 200 locations in North America, but it has seen a gradual decline over the years. While TGI Fridays still boasts around 700 locations globally, the company has struggled to maintain its financial footing.
Why TGI Fridays Is Closing 50 Locations
The decision to close 50 U.S. locations is part of a broader effort to stabilize the company’s finances. Though the company has not officially filed for Chapter 11 bankruptcy, rumors about potential restructuring or a sale have been circulating.
TGI Fridays is not alone in its struggle—other chains in the casual dining space have faced similar difficulties. For instance, Red Lobster filed for Chapter 11 bankruptcy earlier in 2024, closing more than 100 locations, while Buca di Beppo, a beloved Italian chain, shuttered 13 restaurants after filing for bankruptcy in August.
The closures at TGI Fridays are seen as a way to cut losses and refocus on markets where the chain has stronger prospects. While some locations have already shut down, others will close gradually throughout the year.
The Broader Struggle of the Casual Dining Sector
The decline of TGI Fridays and other chains like Red Lobster reflects a larger trend in the dining industry. Economic pressures, combined with changes in consumer preferences, have forced restaurants to adapt or risk closure.
The rise of food delivery apps has shifted how people engage with restaurants, with fewer opting for dine-in experiences. As a result, casual dining chains, which thrived on the in-person dining experience, have been hit hardest.
In addition to changing consumer habits, restaurants like TGI Fridays face the challenges of inflation, rising rent costs, and higher wages. These factors have squeezed profit margins and made it difficult for chains to sustain operations, especially in areas with declining customer bases.
What’s Next for TGI Fridays?
While TGI Fridays CEO Ray Blanchette has not officially commented on the closures, reports indicate that the company is working with financial advisers to explore options, which may include selling parts of the business or restructuring under bankruptcy protection.
For employees at the affected locations, Fridays has offered transfers to nearby restaurants in a bid to retain staff during this difficult period. Though 50 U.S. locations are set to close, the future of the remaining restaurants remains uncertain.
The closures may help the company reduce its overhead and stabilize financially, but whether TGI Fridays can fully recover remains to be seen.
A Farewell to Fridays?
For fans of TGI Fridays, the closures mark the end of an era. The chain, once a trailblazer in casual dining, may not return to its former glory. However, there’s still time to enjoy one last plate of their famous Jack Daniel’s ribs or signature appetizers before your local spot potentially shuts down.
If you’re a loyal customer of TGI Fridays and your favorite location is closing, alternatives like Chili’s or Applebee’s may offer similar fare. But for those who have fond memories of TGI Fridays, the experience and nostalgia will be hard to replicate.
While the future of the chain hangs in the balance, one thing is clear: the landscape of American casual dining is changing, and TGI Fridays’ closures reflect just how difficult it has become for legacy restaurants to survive in this new era.
FAQs
1. Why is TGI Fridays closing 25% of its locations?
TGI Fridays is closing approximately 50 locations due to financial struggles, driven by inflation, rising costs, and a decline in customer traffic.
2. When will the closures happen?
While some locations have already shut down, the closures are expected to continue throughout 2024. No specific dates for each location have been announced.
3. Which states are most affected by the closures?
New Jersey and Massachusetts are the hardest-hit states, with multiple TGI Fridays locations expected to close.
4. Is TGI Fridays filing for bankruptcy?
TGI Fridays has not officially filed for Chapter 11 bankruptcy, but rumors suggest the company is considering restructuring or selling parts of the business.
5. Can TGI Fridays employees transfer to other locations?
Yes, employees at closing locations have been offered transfers to other nearby TGI Fridays restaurants.
