Once upon a time, an American casual dining staple, TGI Fridays, now sees only about 85 restaurants left running in the United States. This is starkly in contrast to what the company claims on its website, which speaks of a drastic discounting of the legendary brand, which at its zenith in 2008 ran some 600 locations across America. At the beginning of 2023, there were still something like 270 U.S. locations, but closures have galloped since then, especially after its parent company filed for Chapter 11 bankruptcy protection in late 2024.
That initial closing pattern saw 30 more restaurants clamped down into total shutdown just last month as part of restructuring. The company had listings of open locations standing at 164 during the bankruptcy filing, meaning nearly half of them have exited since then.
Franchisees take the lead
TGI Fridays hasn’t said much about closures, but they stated that the company is now “led by franchisees,” with the guidance of an advisory board newly formed by franchisees whose members are involved in major decisions throughout the brand. This resignation appears to indicate a movement toward decentralizing and trimming the corporate structure so the brand can fight for its life in an environment that has changed drastically since the time of its forebears.
Pandemic fallout and financial woes
When announcing the Chapter 11 filing, the entity held the COVID-19 pandemic to be the “primary driver of our financial challenges.” Like most others in the casual-dining sub-sector, TGI Fridays has also found it hard to emerge from the lingering effects of shutdown, behavioral changes in consumers, and rising costs of operations. Now that the bankruptcy process is on, the company will look around for “strategic alternatives” to ensure its long-term survival.
A familiar face returns with a new vision
In January 2025, TGI Friday’s former CEO, Ray Blanchette, returned to the company to guide it forward. He has now gone on to acquire several locations and to design a radical reform of the brand. Scheduled to launch next month is a menu geared for the younger customers with Gen Z favorites, such as fusion foods, “swicy” (sweet-and-spicy) flavors, and improved visibility of fresh-grilled steaks.
Given its difficulties in the U.S. market, Blanchette cited the brand’s robust global footprint—nearly 400 international locations still open—as a hopeful sign of continuing relevance.
Casual dining under siege
TGI Fridays is not the only company facing dire financial straits. Hooters also declared bankruptcy this week and is now among a long list of distressed casual dining chains that include Bar Louie, Buca di Beppo, and On the Border. With American diners gravitating away from leisurely sit-down meals into faster and less expensive forms of dining, sales have fallen in other popular chains such as Applebee’s, Red Robin, and Denny’s.
One look at a cultural staple
Founded in 1965 in Manhattan, TGI Fridays helped pioneer the “happy hour” and earned its reputation as a social hangout for singles. The now-famous design with red booths, Tiffany lamps, and uniforms adorned with “flair” became an icon that still enjoys references in pop culture, including the film Office Space.
Whether the brand could find another path would be the question. Meanwhile, only 85 locations in the United States serve as a reminder of a once-great American gastronomical empire.
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This video is a must-see:
However, if this restaurant is your favorite spot, do you know how to make TGI Fridays Jalapeño poppers? Here is a simple way to do it.
