Restaurant Chain Favorite Abruptly Shuts Down Several Locations
In the ever-evolving landscape of the restaurant industry, even beloved chains face the challenges of adapting to shifting demands and economic dynamics. TGI Fridays, a staple in American-style casual dining, recently made headlines with the abrupt closure of 36 “underperforming locations” across the United States as part of its strategic growth plan.
While there is no indication of bankruptcy, TGI Fridays opted for a bold move to optimize and streamline its operations. The closures included restaurants in various states, such as Texas, Massachusetts, New York, New Jersey, Florida, Virginia, and Colorado. Notably, both Denver and Longmont in Colorado no longer have TGI Fridays locations.
The restructuring plan also involved selling eight TGI Fridays restaurants in the Northeast to Ray Blanchette, the former CEO of the chain from 2018 to May 2023. Blanchette, now leading his own hospitality chain, acquired the Northeastern locations to spearhead their revitalization.
TGI Fridays emphasized that 80% of the approximately 1,000 affected employees were offered opportunities to transfer to other locations, demonstrating a commitment to supporting its workforce among the changes.
Ray Risley, TGI Fridays’ President and COO, highlighted the brand’s dedication to delivering an exceptional experience for guests. “By strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Fridays to drive forward its vision for the future,” he said in a press statement.
The chain, privately owned with a majority stake held by private equity firm TriArtisan Capital Advisors, has undergone leadership transitions over the past year. Ray Blanchette, after leading TGI Fridays until May, handed over the reins to TriArtisan Capital’s co-founder Rohit Manocha. However, the leadership baton continued to change hands as Brandon Coleman III took over from Manocha in August, only to resign two months later for personal reasons.
Weldon Spangler, the current Chief Executive, expressed optimism about TGI Fridays’ future during this transformative phase. “We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love,” said Spangler in a statement.
As the restaurant industry grapples with ongoing changes and challenges, TGI Fridays aims to position itself for sustained growth and innovation, ensuring it continues to offer the cherished experience that has made it a favorite among diners.
Are you a TGI Fridays fan? Have you ever experienced the closure of a favorite restaurant, and how did it impact your dining habits?