The pandemic-related wave of restaurant closures appears to be behind us, but even the most successful restaurants are affected by demand and popularity.
The rotisserie chicken fast casual restaurant Boston Market filed for bankruptcy at the end of December after going from 1,200 shops to 300 by 2023. A few months previously, Burger King operator Meridian Restaurants filed for Chapter 11 bankruptcy, citing weak sales and expensive expenditures.
TGI Fridays fans were surprised to find their neighborhood shop closed, even if bankruptcy preparations are not yet announced. The chain closed 36 "underperforming locations" nationwide on Jan. 3 as "part of the brand's ongoing growth strategy."
To Ray Blanchette, who was TGI Fridays' CEO from 2018 to May 2023 and now runs a hotel company he started, eight Northeast restaurants will be sold.
"Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we've identified opportunities to optimize and streamline our operations to meet – and exceed – that brand promise," Ray Risley, president and COO, said in a press release.
"By strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Fridays to drive forward its vision for the future."
Texas, Massachusetts, New York, New Jersey, Florida, Virginia, and Colorado—Denver and Longmont have closed, leaving the latter without TGI Fridays. TGI Fridays reported 80% of the 1,000 closure-affected employees were offered transfers.
The chain expects Blanchette, who bought eight Northeast eateries for an undisclosed amount, to "lead the locations into a new phase of revitalization."
TGI Fridays has undergone severe turbulence over the previous year, but its financial performance is not public because TriArtisan Capital Advisors owns a majority interest.
After Blanchette resigned as CEO in May, TriArtisan Capital co-founder Rohit Manocha appointed Brandon Coleman III in August. The latter quit after two months for "personal reasons."
"We see a bright future for TGI Fridays as we continue our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy," current CEO Weldon Spangler stated.
"We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering 'That Fridays Feeling' that our fans know and love."