Monday, October 28, 2024

Popular restaurant chain abruptly closes almost 50 locations in a week as bankruptcy rumors swirl


Popular restaurant chain abruptly closes almost 50 locations in a week as bankruptcy rumors swirl



TGI Fridays shut down nearly 50 locations last week - amid reports the popular chain is considering bankruptcy amid mounting debts.

As of Monday, the chain operates 164 restaurants, down from 213 just a week ago, according to its online store locator. 

That's a sharp decline from over 250 locations at the start of the year. 

This latest wave of closures follows 36 shutdowns in Januaryseveral more over the summer, and about a dozen last month.

No official list has been released but local media reports show that restaurants have shuttered in CaliforniaOhio, New York, New JerseyFlorida, and Missouri.

TGI Fridays has now fully left two cities - Columbus, Ohio, and Buffalo, New York - after the latest closures.   

The popular casual dining chain is the latest to struggle as Americans, frustrated with higher menu costs, opt to eat at home more. 

Other chains, including Red Lobster, Applebee's and Hooters, have also closed locations.

Founded in New York City in 1965 as a laid-back singles bar, TGI Fridays evolved into one of the first casual dining chains.

Through the 1960s, 1970s and 1980s, it was known for its pioneering food and cocktails.

However, the 1990s saw a shift in its image, as it transitioned from a nightlife spot for young professionals to a popular dining destination for families. 

Despite the change, the brand thrived both in the U.S. and internationally, expanding to more than 650 locations across 51 countries. 

The US arm - known as TGI Fridays Inc - was due this year to merge with Hostmore, which runs 89 TGI sites in the UK.  

But the deal fell apart, as did the plan to create a larger firm listed in London.

Casual dining chains like TGI Fridays and fast food giants like McDonald’s have experienced declining sales as Americans push back against two years of menu price increases by cutting back on spending. 


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