TGI Friday's International Issues Statement on Reports of Store Closures in the US
The shuttering of several TGI Friday's stores in the United States and United Kingdom has been all over the news the past few weeks. CNN recently reported that almost 50 U.S. branches have closed down the past week, from the 213 that were still open the prior week.
The ones that shut down include branches in the states of California, Ohio, New York, New Jersey, Florida, and Missouri. The American restaurant chain has completely ceased operations in the cities of Columbus, Ohio, and Buffalo, New York. Its store locator indicates that 164 stores are still operational in the U.S., down from the 213 that were open last week, according to the CNN report.
ALSO READ
Tupperware Brands Corporation Files for Chapter 11 Bankruptcy
What Exactly Does it Mean When a Company Files for Bankruptcy?
There were speculations that TGI Fridays is preparing to file for bankruptcy, a trend happening across different industries. Bloomberg earlier reported that the casual restaurant chain is "huddling with lenders" to secure funding to help sustain its operations through the Chapter 11 process.
Ten restaurant chains in the U.S. have filed for bankruptcy protection in 2024, according to a CNBC report: Roti, Buca di Beppo, World of Beer, Rubio's, Melt Bar & Grilled, Kuma’s Corner, Red Lobster, Tijuana Flats, Sticky’s Finger Joint, and Boxer Ramen.
Meanwhile, it's business as usual for TGI Friday's stores in the Philippines. Currently, the casual restaurant chain has a total of 30 branches in the country. All the branches are owned and operated by The Bistro Group, one of the country's largest food and beverage companies that also runs other restaurants like Italiannis, Fish & Co., Denny's, El Pollo Loco, and many others.
In a statement to Esquire Philippines, Mike Olk, Senior Vice President of International Franchise for the Americas and Asia Pacific, explained that the closure of some TGI Friday's restaurants in the U.S. involved "underperforming company-owned locations where trade areas had changed, leases were expiring, or locations of unprofitable operations." He added that the closures were in line with the asset light model that the brand is pursuing "to be 100 percent franchise.”
In January of this year, TGI Fridays CEO Weldon Spangler expressed optimism about the brand’s ongoing transformation and strategic growth plans. "We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering 'That Friday's Feeling' that our fans know and love."
Ray Risley, Chief Operating Officer of TGI Fridays in the U.S., added that "by strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Friday's to drive forward its vision for the future."
