There was something special about the end of the week, the way the corporate world almost instinctively gravitated towards Friday afternoon, with many looking forward to unwinding at TGI Fridays.
It wasn’t just about the food; it was about celebrating that “Thank Goodness It’s Friday” moment—a collective sigh of relief that marked the end of deadlines and the start of well-earned downtime. TGI Fridays, an iconic American dining chain, was where countless happy hours and casual gatherings took place, embodying the weekend spirit that we all knew and loved.
But, as the world has seen with other beloved brands, financial challenges eventually came knocking. This Saturday, TGI Fridays filed for Chapter 11 bankruptcy protection after struggling with longstanding economic hurdles and the collapse of a major deal with UK-based Hostmore.
The filing, made with the U.S. Bankruptcy Court for the Northern District of Texas, reported assets and liabilities estimated between $100 million and $500 million—a daunting financial challenge even for a brand as time-honored as Fridays.
Privately owned by TriArtisan Capital Advisors, TGI Fridays has been a household name since it opened its first bar in Manhattan back in 1965. Over the years, it became known as a “happy hour” staple, a place where people could grab a drink, laugh with friends, and let the week’s stress melt away.
Currently, TGI Fridays operates 39 restaurants across the U.S., with operations set to continue as they secure financing to support daily functions. Executive Chairman Rohit Manocha explained, “The primary driver of our financial challenges resulted from COVID-19 and our capital structure,” adding that restructuring would enable their remaining restaurants to reach their full potential.
The pandemic delivered a heavy blow to TGI Fridays, as it did to many sit-down dining establishments. And the challenges compounded when Hostmore, a British operator that ran TGI Fridays through its unit Thursdays (UK), backed out of an acquisition plan in September. This decision led to a domino effect of closures across the UK, with 35 locations shuttered and over a thousand employees affected.
The news of the bankruptcy filing feels like an end of an era for those of us who associate Fridays with TGI Fridays’ neon lights, familiar decor, and signature plates. For many, this restaurant wasn’t just about dining out—it was the unofficial “office” of Friday nights, the place where laughter flowed as freely as drinks and memories were made.
But even as TGI Fridays faces an uncertain future, its franchisees around the world are continuing operations as usual. Franchise-owned locations in 41 countries, independent of the Chapter 11 process, will keep serving those who still seek the vibe that TGI Fridays brought to the dining scene. This means that for anyone missing that “Friday feeling,” there’s still a place to catch a burger, a round of drinks, and maybe a bit of that nostalgia.
Something Very Unique About TGIF
There’s something undeniably unique about TGI Fridays. For decades, this American bar and grill has brought a slice of New York dining and a taste of American flavors to communities around the world. From the unforgettable Loaded Potato Skins to the iconic Jack Daniel’s® Grill, TGI Fridays has made a name for itself with bold flavors and a sense of fun that’s hard to replicate. It’s a place that’s been as much a social hub for friends and families as it has been a destination for good food and inventive drinks.
Since its opening in New York in 1965, TGI Fridays quickly became a beloved spot for everything from wild Friday nights to family celebrations. It’s the place where you go for the Signature Margarita or dig into a piece of authentic New York cheesecake, a classic setting for gathering, laughter, and enjoying life’s small pleasures. Fridays became more than just a name—it was the embodiment of kicking back, letting loose, and celebrating the end of a long week.
While TGI Fridays expanded through franchising both domestically and internationally, the brand has had to adapt over the years to new ownership and changing times.
It has been passed from the Carlson Group, who acquired it in 1975, to TriArtisan Capital Partners, who took over the U.S. operations in 2014, then fully acquired it in 2019. Across the pond, the U.K. business was acquired by Electra Partners and later went public under the name Hostmore.
Unfortunately, Hostmore sought debt protection this past September after a failed takeover attempt, closing numerous locations throughout the U.K. and impacting hundreds of employees.
Back in the U.S., TGI Fridays’ empire once boasted over 600 locations and $2 billion in sales at its peak in 2008. Fast forward to 2023, and its sales have dropped to $728 million—a significant decline, no doubt.
The brand now counts just 163 U.S. locations, with only 39 corporate-owned sites out of its global network of 461 restaurants. Although it still has a presence worldwide, these numbers paint a gloomy picture of how much TGI Fridays has had to contract to stay afloat.
Tough Days
The tough days aren’t just a TGI Fridays story, though; the scene for sit-down dining chains has changed drastically. With customers opting for delivery or choosing fast-casual spots like Chipotle and Shake Shack, traditional restaurants have faced an uphill battle. Even Red Lobster and Buca di Beppo, beloved in their own right, have filed for bankruptcy in recent years.
For TGI Fridays, the pandemic proved especially challenging, even as it ventured into the ghost kitchen trend—kitchens operating without a storefront, only fulfilling delivery orders. Yet, even this pivot couldn’t stave off financial strain, and DoorDash, its delivery partner, is now among its largest creditors.
In October, Denny’s, another familiar face in the sit-down dining world, announced it would be closing 150 of its lowest-performing locations.
Thus, the shifts we’re seeing go beyond TGI Fridays; they reflect a wider transformation in the dining scene and what’s happening isn’t just about sales or locations—it’s about a way of dining and socializing that’s becoming increasingly rare.
Snapshot
TGI Fridays might be struggling, but it’s far from out of the game.
While its current challenges outline the difficulties facing classic sit-down restaurants, its international franchises continue to operate and share the Fridays experience with loyal customers around the globe.
For a restaurant chain built on the idea that Fridays are worth celebrating, perhaps this resilience is fitting. Here’s hoping that TGI Fridays can hold onto the essence of what made it special, adapting to a new chapter while keeping its Friday spirit intact.
