TGI Fridays Shuts down 36 Struggling Restaurants in Sudden Move
TGI Fridays shocks fans by permanently closing 36 underperforming restaurants across the US, leaving many patrons surprised and disappointed
Some TGI Fridays fans were caught off guard this week as their neighborhood restaurant unexpectedly closed its doors for good, as the chain made the sudden decision to shut down numerous locations across the US.
A statement from the chain revealed that it had closed 36 "underperforming" restaurants as part of its "continuing expansion plan," which also involved a reorganization of its leadership team and the sale of certain restaurants back to its previous CEO.
TGI Fridays did not publish a list of the closed locations, however, reports from local media show that seven locations in New Jersey, six in Massachusetts, and five in New York were affected the most. Additionally, some locations in California, Colorado, Florida, Texas, and Pennsylvania were reportedly closed.
Before the closures, TGI Fridays had approximately 270 US locations, a number that has decreased in recent years. The company stated that about 80% of the "total impacted employees" were provided with transfer opportunities.
"We are committed to providing an exceptional experience for all TGI Fridays guests, and we have found ways to improve and simplify our operations in order to fulfill our brand promise," said Ray Risley, the president and chief operating officer of TGI Fridays in the press release.
As part of the changes, TGI Fridays has sold eight corporate-owned locations in the Northeast US to former CEO Ray Blanchette, who served as chief executive for five years until May 2023. This move represents some of the changes being made at the nearly 60-year-old chain.
Blanchette's deep understanding of the TGI Fridays business and the company's dedication to providing top-notch service to guests are unparalleled, according to the chain. They added that he will be spearheading a new era of revitalization for the locations.
TGI Fridays, privately owned by TriArtisan Capital Advisors, a private equity firm, does not publicly disclose its financial results. However, the company announced last year that it anticipated total sales to hit $1.6 billion in 2022, with same-store US sales seeing an 8% increase compared to 2019.
It also changed up its menu in recent months to keep up with its rivals, notably Applebees and Chilis, by adding sushi, refreshing its cocktail menu and giving its appetizer selection a makeover.
