TGI Fridays abruptly closes 36 ‘underperforming’ restaurants, sells 8 more to former CEO
Casual dining chain TGI Fridays abruptly announced that it is closing 36 “underperforming” restaurants across the US — five of which are in New York — as part on an “ongoing growth strategy.”
Photos on social media showed some of the shuttered locations had a notice posted on the door that read: “We regret to inform you that Fridays has made the difficult decision to close our doors…effective Jan. 2, 2024.”
“As part of the closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company said in a press release.
When the Dallas-based company revealed the surprise closures Wednesday, it also said eight previously corporate-owned restaurants in the Northeast will be sold to former CEO Ray Blanchette.
Blanchette served as the chief of TGI Fridays for five years, resigning in May as the restaurant chain — creator of the popular Loaded Potato Skins appetizer — “entered a new phase of revitalization.”
The restaurants being sold to Blanchette include six in Massachusetts (in Braintree, Boston/Brigham, Everett, Methuen, Millbury and Stoughton) and two in New Hampshire (Concord and Manchester), according to Nation’s Restaurant News.
The 36 locations that are closing for good span 12 states, including seven in New Jersey, six in Massachusetts, five in New York and four in Texas and Virginia.
There were also closures in California, Connecticut, Florida, Maryland, New Hampshire and Pennsylvania, plus two in Colorado — the state’s only two TGI Fridays locations.
TGI Fridays has yet to reveal a definitive list of which outposts in each of the states have closed. The company is owned by private equity firm TriArtisan Capital Advisors and its financial results aren’t released.
According to the company’s website, there are more than 850 TGI Fridays restaurants in 55 countries. Roughly 275 are located in the US.
A spokesperson for TGI Fridays declined to comment beyond what was stated in the company’s press release.
“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,” the chain’s US president and chief operating officer, Ray Risley, said in the press release.
He continued: “Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet — and exceed — on that brand promise.”
However, the company said last year that total sales were projected to reach $1.6 billion in 2022 with same-store US sales growing at 8% compared to 2019.
It’s also revamped its menu in recent months to stay competitive with rivals like Applebee’s and Chili’s.
In October, it announced that it added new appetizers, salads and non-alcoholic cocktails to its menu.
Applebee’s and Chili’s both gave their menus a makeover shortly beforehand, in October 2022 and May 2023, respectively.
