Another Famous Restaurant Staple Bites The Dust (You Won't Guess Who Their Blaming)

Well friend, this one’s going to hit your nostalgia harder than a Gilmore Girls episode. TGI Fridays, the iconic candy cane striped restaurant where happy hour ruled (in the 90s at least) and potato skins were basically a food group, just filed for Chapter 11 bankruptcy. Their reason? That pandemic that apparently won’t let anyone catch a break (I don’t know about you but I’ve heard enough of the covid excuses).

We all know Fridays as the place with big red booths, Tiffany lamps, and bartenders sporting enough flair to rival a Mardi Gras parade. But the chain hasn’t been the same since COVID-19 turned the dining industry on its head. Indoor dining bans hit casual eateries like a sledgehammer, and for TGI Fridays, it never truly recovered.

Executive Chairman Rohit Manocha laid out the tough truth: since the pandemic hit, TGI Fridays has lost nearly $350 million in revenue, with sales dropping over 30% in 2020 alone. While sales began to recover as restrictions eased, they never fully bounced back, leaving Fridays struggling. Inflation has piled on more pressure, with operating costs up nearly 20% due to higher ingredient prices and supply chain delays. With this financial strain, Chapter 11 is Fridays’ shot at a fresh start, a chance to restructure and hopefully find steady ground again.

So what’s left of this once-beloved chain? TGI Fridays currently runs 39 corporate-operated U.S. restaurants, which will stay open as the company navigates the Chapter 11 process. The rest of the global locations (around 461 of them) are owned by franchisees and remain untouched by the bankruptcy. That said, January brought the closure of 36 underperforming U.S. locations, and just last week, 50 more shuttered, cutting the total U.S. presence to 163.

But hey, it’s not all bad news—TGI Fridays managed to get debtor-in-possession financing. In plain English? They’ve got enough cash to keep the burgers flipping and the cocktails flowing while they figure out their money mess. Plus, thanks to some clever bookkeeping (read: securitization), the brand is safe for now. So, no, you won’t see the TGI Fridays logo or those button-covered uniforms popping up at your neighbor’s yard sale anytime soon.

Even across the pond, TGI Fridays hasn’t been immune to trouble. Its U.K. operations faced bankruptcy as a proposed acquisition fell through, leading to the closure of several locations and 1,000 job losses. 

TGI Fridays isn’t alone in this mess. Over the past year, other big names like Red Lobster and Buca di Beppo have also filed for bankruptcy, hit hard by pandemic aftershocks and rising costs. Even Ruby Tuesday has closed multiple locations trying to stay afloat. The post-pandemic world hasn’t been kind to casual dining, and the industry is still scrambling to adapt.

For Fridays, this isn’t a total death but a drastic reset. Manocha and the company hope to use this bankruptcy as a chance to explore new strategies and future-proof the brand. And while they won’t be giving up the rights to their famous name or that legendary flair, it’s clear they’re on the lookout for a new playbook.

All in all, TGI Fridays' isn't publicly traded on the stock market (so I guess that's the only good in this story). But if they want a comeback, they’re going to need a whole new strategy to get people excited about Fridays again.

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