TGI Fridays Files for Bankruptcy

The parent company of the U.S. restaurant chain TGI Fridays, filed for Chapter 11 bankruptcy in Texas. The move comes after several shakeups in its leadership and restaurant holdings signaled the imperiled nature of the company’s finances.

Founded in 1965 in Manhattan by Alan Stillman, the iconic red-and-white awning-adorned bar and restaurant quickly expanded to include franchised locations across the country and a number of spin-offs. After changing hands and ownership structure several times, the company today encompasses over 400 locations. Its performance peaked in 2008 with $2 billion in annual revenue. In 2023, the company claimed just $728 million in sales and a significant reduction in active restaurants.

Self-described as “the birthplace of fun, freedom, and celebration,” the company cited its capital structure and COVID-19 as the primary source of its financial challenges. Though it’s just one of many businesses adversely affected by the pandemic, the statement claims that the restructuring move will allow TGI Fridays Inc. to optimize its infrastructure and ensure long-term brand viability. The bankruptcy proceedings will not impact its domestic and international franchise holdings (which remain open to customers), only affecting its 39 owned and operated domestic restaurants.

TGI Fridays locations have been steadily closing in the US and abroad for several years, shuttering over 100 domestic locations since 2023 and dozens more in international markets. Its declining revenue has been accompanied by several changes in leadership since 2023, with longtime board member Weldon Spangler most recently assuming the role of CEO.

TGI Gaming

In the gaming world, TGI Fridays recently partnered with Cooking Fever, Nordcurrent’s popular cooking simulation game, as an available in-game franchise. The game, one of the many cooking simulators on the market, has partnered with other brands in the past, including Hard Rock Cafe and Coca-Cola. Since its publication in 2014, Cooking Fever has been downloaded 450 million times.

Though it’s not the first corporate entity to attempt product placement in video games, the company seems determined to chart a growth-oriented trajectory and re-establish itself in consumers’ minds with continued marketing initiatives. As the TGI Fridays brand restructures and consolidates, it’s unclear if changing spending and dining habits in domestic and international markets will allow the company to regain its footing.