TGI Fridays, once a staple of the American casual dining experience, has been rapidly closing locations across the United States. In the past several months, the restaurant chain has shut down over 130 stores as it grapples with ongoing financial challenges. The closures come after the company filed for Chapter 11 bankruptcy in November 2024, citing declining sales, shifting consumer habits, and mounting debt.
Widespread Closures Across Multiple States
The latest round of shutdowns has impacted TGI Fridays locations in New York, New Hampshire, Maryland, Massachusetts, and Ohio. Signs placed on locked doors have informed customers that closing the stores was a “difficult decision.” These closures follow previous waves of shutdowns, including nearly 50 locations in October 2024 and 36 underperforming stores in January.
Between 2008 and 2023, TGI Fridays had already reduced its U.S. presence significantly, shutting down 55% of its locations while sales declined by more than 60%. The financial strain worsened after a planned merger with the UK’s Hostmore franchise fell through, leaving the company with limited options to sustain its operations.
Franchise Business Still Operates Globally
Despite its challenges in the U.S., TGI Fridays still operates nearly 400 locations worldwide, most of which are run by franchisees. To help navigate the crisis, former CEO Ray Blanchette has returned to oversee the company’s global operations. While the franchise business remains active, the future of the brand in the U.S. remains uncertain.
Changing Consumer Preferences Hurt Casual Dining
The decline of TGI Fridays mirrors a broader shift in the restaurant industry. Casual dining chains, once a dominant part of American food culture, have struggled in recent years as younger generations gravitate toward fast-casual dining, delivery apps, and more affordable options. The sit-down dining model that once made TGI Fridays popular is losing ground to convenience-focused alternatives like Chipotle and Shake Shack.
Company Seeks Financial Recovery
In response to its financial troubles, TGI Fridays has been looking for ways to restructure its business. The company has blamed its struggles on the long-term effects of the COVID-19 pandemic and its capital structure, which made it difficult to recover. Executive chair Rohit Manocha stated that efforts are underway to “ensure the long-term viability” of the brand.
As part of its restructuring, nine TGI Fridays locations are expected to be sold to restaurant operator Mera Corp. for $34.5 million. However, it remains to be seen whether these steps will be enough to keep the brand afloat in the competitive restaurant industry. With fewer locations and changing dining habits, TGI Fridays is at a critical turning point in its history.
