Once the leader in casual dining across America, TGI Fridays’ footprint is now significantly lessened across the U.S. Once, that place was where to sip cocktails while enjoying great company over dinner, and today it has only 25% of its former restaurants. “The Company must allow the Company to explore strategic alternatives to ensure its long-term viability.” TGI Fridays went into Chapter 11 in November.
Back then, TGI Fridays had long become a household name, a father in the establishment of the singles bar, and a strong forecaster of Long Island Iced Tea. Currently, though, few remain—just about one-third of the original number of restaurants still exist. Today, 391 TGI Friday’s operate in 41 countries across the globe, but most are franchised and, therefore, outside of the bankruptcy motion.
Less than 10% of the global system runs into bankruptcy
According to a press release, all locations that are franchised to 56 franchisees in 41 countries were excluded from the proceedings of Chapter 11. “The real story,” assigned a spokesperson to FOX Business, “is not the closures, but rather the restructuring and new directions being undertaken by the brand. The entity that filed for bankruptcy is completely different from the brand we have now launched into new management by franchisees.”
“The bankruptcy affected less than 10% of the system,” went on to say the spokesperson. The change of ownership indicates that franchisees guided by an advisory board now have deeper powers of decision-making for issues that concern the brand as a whole. This model of decentralization is thus poised to be adaptive and accelerate the organization’s responsiveness to the specific needs of the market.
New management and revival plans for franchisee Ray Blanchette
A familiar face to many since he was CEO of TGI Fridays from 2018 to 2023, he has returned to assist in the brand revival. He now heads Sugarloaf TGIF Management, which is the new operating company that has been set up to reinvigorate the brand. The chain is already under massive transformation under Blanchette’s watch.
Within the first 100 days of his return, Blanchette managed to refresh upwards of 80% of the brand menu. The food and cocktail sustainment fully relaunched nationally on May 13, with an explanation: to modernize our offerings further to continue energizing the new generation of diners.
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Brand modernization to attract youth
For TGI Fridays, winning back their customers isn’t only about a new menu; it also means a new identity for the brand. The new voice for the brand is changing and is being freshened up, according to Blanchette in an interview on FOX Business, and the company is keen on engaging through social media. The plan is that this digital shift would attract the hook-a-young-and-socially-connected member of the audience.
As TGI Fridays strives to regain its foothold, it just might be that on the verge of new dramatic changes, the survival of the brand will depend on how impartially it supports old-timers’ tales and how well it innovates. For now, the fans properly assume that the closure of many local locations is beginning to be a wishful memory. Accordingly, this bold restructuring is not the end of the story but may be a wonderful beginning of the new.
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