A new year is often meant to symbolize a new beginning, but for one of America’s most recognizable casual dining brands, 2024 offered the opposite. Instead of renewal, the year was marked by financial problems, bankruptcy and a significant loss of its domestic and international footprint.
Founded in 1965 in New York City, this restaurant chain has become a household name serving classic American bar food and offering popular happy hour drink specials designed to make every day feel like Friday. For decades, the brand portrayed itself as a lively escape where guests could kick back, enjoy indulgent food and relax.
But behind that image, the chain had been quietly struggling with years of declining sales and rising costs. These pressures eventually reached a tipping point, leaving the company unable to sustain its financial obligations.
In early 2024, TGI Fridays began closing dozens of underperforming restaurants nationwide, describing the move as a strategic effort to streamline operations and position the brand for long-term growth. However, the closings continued throughout the year, reaching about 50 locations before the company made the long-feared announcement.
In November of that year, TGI Fridays filed for Chapter 11 bankruptcy protection, citing $37 million in debts. In court filings, the company attributed much of its financial collapse to the COVID-19 pandemic, which forced it to temporarily close restaurants and suffer the consequences of cautious consumer spending.
The bankruptcy filing only applied to company-owned restaurants, not franchise locations. TGI Fridays provided debtor-in-possession financing, allowing the restaurants to remain open and continue normal operations during the restructuring process.
At the time of filing, the brand operated fewer than 40 company-owned restaurants in the U.S., along with 120 national franchise locations and 316 international locations.
TGI Fridays has announced a new turnaround plan to boost growth after bankruptcy and widespread restaurant closures.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
TGI Fridays has announced a new turnaround plan to boost growth after bankruptcy and widespread restaurant closures.Shutterstock
TGI Fridays’ struggles spread beyond the US In September 2024, Hostmore PLC, the brand’s UK franchisee, filed for administration, the British equivalent of bankruptcy, putting 87 restaurants at risk of closure.
A month later, investment firms Breal Capital and Calveton acquired the UK business, preventing the brand from disappearing from the region entirely. The deal saved 51 locations and thousands of jobs, although 35 restaurants eventually closed and more than 1,000 employees were laid off.
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In November 2025, 49 UK locations were sold to Sugarloaf TGIF Management, a company founded by TGI Fridays CEO Ray Blanchette as part of a wider effort to strengthen brand management, Sky News reported.
Blanchette, who served as TGI Fridays CEO for five years before stepping down in 2023, later returned to oversee more than 400 franchised locations as the company navigated bankruptcy proceedings, The Wall Street Journal reported.
TGI Fridays is introducing a new turnaround strategy called “1-2-3 Strategic Vision.” The plan aims to generate $2 billion in revenue and expand the brand to more than 1,000 restaurants worldwide by 2030 through the successful execution of four key pillars.
Brand Activation: Create memorable guest experiences that foster emotional connections, drive more traffic, increase check averages and improve online reviews.
Flexible growth in all markets: Global expansion through flexible formats and multi-channel growth models, including airport locations, hotel concepts and traditional full-service restaurants.
Consolidation of the franchise system: Improve franchisee profitability and consistency through stronger support, operational excellence and strategic partnerships
Fueling performance through people: Investing in leadership development, training and performance initiatives to empower team members and franchisees
As part of this initiative, TGI Fridays will continue to invest in menu and beverage innovations, enhance in-store and digital guest experiences, focus on everyday value platforms and implement restaurant updates designed to support long-term growth.
“Our goal as we accelerate our growth is to resonate with the next generation of consumers while maintaining the classic American feel and signature experience that has made the brand beloved in more than 40 countries,” TGI Fridays CEO Ray Blanchette said in a press release.
TGI Fridays is not alone in its struggles; the wider restaurant industry faces persistent and unpredictable challenges that have contributed to the closure of thousands of restaurants around the world amid rising costs and changing consumer behaviour.
Red Lobster: Filed for Chapter 11 bankruptcy in 2024 and closed hundreds of locations (Source: The Street)
Applebee’s: It expects to close between 20 and 35 restaurants in 2024 (Source: Restaurant Dive)
Outback Steakhouse: 21 restaurants closed as of November 2025 (Source: CNN)
Romano’s Macaroni Grill: Several locations have recently closed, leaving just nine restaurants nationwide (Source: The Street)
Inflation played a significant role in the industry’s struggles. Food away from home prices rose 3.7% in the 12 months ending in September 2025, according to recent data from the US Bureau of Labor Statistics.
Over the past five years, food and labor costs for the average restaurant have each risen about 35 percent, according to the National Restaurant Association.
To offset these increases, menu prices rose an average of 31% between February 2020 and April 2025, based on data from the US Bureau of Labor Statistics.
As prices rise, customer traffic fell 1 percent in the food service industry during the quarter ending June 2025, according to Circana.
“This presents a significant challenge for restaurants as home-cooked meals directly displace demand for dine-in establishments, which translates into reduced revenue and decreases in customer traffic as demand shifts to grocery stores,” said Coresight Research analyst Sujeet Naik.
To combat rising costs and dampen demand, many restaurants are turning to menu innovation, modernization and redefined value propositions.
“In response to the shrinking food dollar and empowered customers, restaurants are turning to innovative business and operating models to capture greater market share,” KPMG restaurant segment leader Paul Fultz and consumer markets strategy leader Joel Rampoldt said in a study.
“Value is rarely defined by price alone,” added David Portalatin, senior vice president and industry advisor for food and foodservice, Circana. “Operational excellence in delivering quality, affordability, great experiences and convenience is what drives winning restaurants and their supply chain partners to greater success.”
Related: Taco Bell is bringing back the fan-favorite menu item with a bold update
This story was originally published by TheStreet on January 13, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.
