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TGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue
COUNTRY THAT IT SAYS WERE UNDERPERFORMING AMONG THE T.G.I. FRIDAY’S IN DEDHAM SITS DARK TONIGHT, A SIGN TAPED TO THE DOOR TELLS OF THE SUDDEN SHUTDOWN NOT JUST HERE, BUT AT RESTAURANTS IN DANVERS, MARLBOROUGH, MANSFIELD, NORTH ATTLEBORO AND SEEKONK AS WELL. I’M A SINGLE MOM WITH TWO KIDS, AND I WORK SOMETIMES, LIKE OPEN TO CLOSE. SARAH CLEMENS IS A PARAEDUCATOR IN THE PUBLIC SCHOOL SYSTEM, BUT FOR THE PAST EIGHT YEARS HAS HAD TO ALSO TEND BAR AT FRIDAYS TO PAY HER BILLS. BASED ON HOW OUR PAY PERIOD GOES, THEY OWE US AT LEAST ONE MORE WEEK. UM, BUT BECAUSE OUR VACATION TIME AND OUR SICK TIME AND STUFF LIKE THAT DOESN’T ROLL OVER TO THE NEW YEAR, WE ARE GOING TO BE PAID OUT FOR ANYTHING OTHER THAN THE LAST WEEK THAT WE WORK LIKE, AT LEAST GIVE US A SEVERANCE. THE RESTAURANT CHAIN HAS BEEN AROUND SINCE 1965, WITH THE PROMISE, AND HERE IT’S ALWAYS FRIDAY. IT’S BEST KNOWN FOR ITS APPETIZERS. I REALLY LIKE THE SPINACH AND ARTICHOKE DIP. THEY HAD PRETTY GOOD JALAPENO POPPERS, LIKE THEIR POTATO SKINS AND STUFF WAS GOOD. BUT YEAH, I DIDN’T KNOW THAT WHEN IT WAS CLOSING. T.G.I. FRIDAY’S PRESIDENT AND CEO SAYS BY STRENGTHENING OUR FRANCHISE MODEL AND CLOSING UNDERPERFORMING STORES, WE ARE CREATING AN UNPRECEDENTED OPPORTUNITY FOR FRIDAY’S TO DRIVE FORWARD ITS VISION FOR THE FUTURE. I’M SHOCKED. I MEAN, WE’VE BEEN GOING THERE FOR LIKE 15 YEARS. WHEN MY SON WAS LITTLE, WE’D GO THERE ALL THE TIME. EVEN MORE SHOCKED THE EMPLOYEES. THIS STAFFER WORKED THE DEDHAM LOCATION FOR OVER 20 YEARS. NO NOTICE, NO NOTICE, NO NOTICE, NO. IT’S SUPER SAD. YES, LOTS OF PEOPLE CRYING. NOW THE COMPANY SAYS IT IS ALSO OFFERING 1000 TRANSFER OPPORTUNITIES. STAFF WE SPOKE TO DID NOT GET ANY SUCH OPPORTUNIT
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TGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue
Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.The Dallas-based company filed for Chapter 11 bankruptcy protection in a Texas federal court.TGI Fridays Executive Chairman Rohit Manocha in a statement said the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”Sit-down chain restaurants have more broadly faced challenges in recent years as diners choose to get food delivered or visit upscale fast food chains like Chipotle and Shake Shack.A U.S. bankruptcy judge in September approved a reorganization plan for seafood chain Red Lobster after years of mounting losses and dwindling customers.Founded in 1965, the popularity of TGI Fridays peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its sales in the U.S. were $728 million in 2023, down 15% from the prior year, according to Technomic.It now counts 163 restaurants in the U.S., down from 269 last year. It closed 36 in January and dozens more in the past week.TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those remain open.
DALLAS —
Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.
The Dallas-based company filed for Chapter 11 bankruptcy protection in a Texas federal court.
TGI Fridays Executive Chairman Rohit Manocha in a statement said the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
Sit-down chain restaurants have more broadly faced challenges in recent years as diners choose to get food delivered or visit upscale fast food chains like Chipotle and Shake Shack.
A U.S. bankruptcy judge in September approved a reorganization plan for seafood chain Red Lobster after years of mounting losses and dwindling customers.
Founded in 1965, the popularity of TGI Fridays peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its sales in the U.S. were $728 million in 2023, down 15% from the prior year, according to Technomic.
It now counts 163 restaurants in the U.S., down from 269 last year. It closed 36 in January and dozens more in the past week.
TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those remain open.
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