Beloved restaurant chain that brought cocktails to the masses now has just 85 locations left in the US
A happy hour hot spot is hanging by a thread.
TGI Fridays, the fast-casual drinks and burger restaurant that helped define suburban mall culture, has shut hundreds of stores since the 2020 pandemic.
Founded in 1965 in New York City, the iconic brand grew into a $2 billion business.
The restaurant chain used to own and franchise 600 US locations at its peak in 2008.
From the 80s through the mid 2010s, middle class shoppers flocked to the mall-adjacent restaurants for burgers, ribs, steaks, and cheap cocktails.
The chain is often credited as the Long Island Iced Tea’s inventor. But the cocktail-producing icon has faded.
In January 2024, the company boasted around 240 restaurants across the US. Now, its website only lists 85 storefronts.
The dwindling number of stores isn’t a huge surprise: TGI Fridays’ parent company filed for Chapter 11 bankruptcy protection in November after a deal to sell with a UK restaurant brand fell through.
TGI Fridays built a reputation as a value-forward restaurant with casual cocktails
Since then, closures have accelerated, with roughly 30 restaurants permanently shutting their doors in just the last month.
Most of the stores left in the US are run by franchise owners. Business operations at those locations have not been impacted by the parent company’s bankruptcy filing.
In fact, the brand has spent the last few months selling off locations to its franchisees — including Ray Blanchette, a former CEO who returned to the company in January.
Blanchette has remained bullish on the iconic brand’s future, claiming that his investments — including an updated menu and restaurant redesigns — will spark new life into the chain.
‘We’re bringing the fun back to Fridays, giving people more reasons to gather and celebrate,’ Blanchette said in an interview with Restaurant Dive.
‘Over the past decade, our business, and the category-at-large, has faced challenges.’
TGI Fridays’ longtime competitors have also filed for bankruptcy as Americans turn away from fast casual brands.
For years, low and middle class Americans have tightened their budgets while dealing with higher inflation.
Ray Blanchette, the former CEO, has purchased several TGI Fridays locations and is hoping to re-energize the company with a new menu
TGI Fridays’ menus relied on Americana-inspired foods: chicken fingers, Long Island iced teas, and ribs
The restaurant has been shuttering stores in droves
Shoppers have been avoiding fast casual chains as they look for more food value
Cutting back on restaurant visits has become a common way for people to save money, contributing to an economic slowdown for competing restaurants.
And, the restaurants have been dealing with inflationary pressures on their offerings.
The toxic mix of higher cost and lower traffic has plunged multiple brands: On The Border, Hooters, Buca di Beppo, Red Lobster, and Roti have all filed for bankruptcy.
Meanwhile, other restuarant staples, like Denny’s, Applebee’s, Outback Steakhouse, and Cracker Barrel have all reported shrinking sales estimates.
Still, some chains have been able to balance their financial spreadsheets and lure more customers with bargain options.
Both Olive Garden and Texas Roadhouse, which both owned by the same parent company, Darden Restaurants, have both reported growing customer interest in their stores.
The chains have a huge footprint of locations across the US and feature value-packed menus.
