A new year is often meant to symbolize new beginnings, but for one of America’s most recognizable casual food brands, 2024 delivered the opposite. Instead of renewal, the year was marked by financial problems, bankruptcy, and a significant loss of its domestic and international footprints.
Founded in 1965 in New York City, this restaurant chain became 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 relax, enjoy indulgent food, and unwind.
But behind that image, the chain had been quietly struggling with years of declining sales and rising costs. Those pressures finally reached a tipping point, leaving the company unable to meet 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 closures continued throughout the year, reaching around 50 locations before the company made the announcement it had long feared would come.
In November of that same year, TGI Fridays filed for Chapter 11 bankruptcy protection, citing $37 million in debt. 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 secured debtor-in-possession financing, which allowed 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 United States, along with 120 domestic franchise locations, and 316 international units.
TGI Fridays has announced a new turnaround plan to boost growth following 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 following bankruptcy and widespread restaurant closures.Shutterstock
TGI Fridays’ struggles have expanded beyond the U.S. In September 2024, Hostmore PLC, the UK franchisee of the brand, filed for administration, the UK 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 ultimately 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 consolidate brand management, as reported by Sky News.
Blanchette, who served as CEO of TGI Fridays for five years before retiring in 2023, later returned to oversee more than 400 franchised locations as the company navigated bankruptcy proceedings, as reported by The Wall Street Journal.
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 higher traffic, increase checkout averages, and improve online ratings.
Flexible growth in all markets: Expand globally through flexible formats and multi-channel growth models, including airport locations, hotel concepts, and traditional full-service restaurants.
Strengthening the concession system: Improve franchisee profitability and consistency through stronger support, operational excellence and strategic partnerships
Fuel performance through people: Investment 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, improve in-store and digital customer experiences, focus on everyday value platforms, and implement restaurant improvements aimed at supporting long-term growth.
“Our focus as we accelerate our growth is to resonate with the next generation of consumers while preserving 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 worldwide amid rising costs and shifting consumer behaviour.
Red Lobster: Filed for Chapter 11 bankruptcy in 2024 and closed hundreds of locations (Source: The Street)
Applebee’s: 20 to 35 restaurants expected to close in 2024 (Source: Restaurant Dive)
Outback Steakhouse: From November 2025, 21 restaurants were closed (Source: CNN)
Romano’s Macaroni Grill: It recently closed several locations, leaving just nine restaurants nationwide (Source: The Street)
Inflation played a significant role in the industry’s struggles. Prices for food outside the home increased by 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 increased by about 35%, according to the National Restaurant Association.
To offset those increases, menu prices rose an average of 31% between February 2020 and April 2025, based on US Bureau of Labor Statistics data.
As prices rise, customer traffic fell 1% across the foodservice industry during the quarter ending in June 2025, according to Circana.
“This poses a significant challenge for restaurants, as home-cooked meals directly displace demand for dining establishments, which translates into reduced revenue and reduced customer traffic as demand shifts to grocery stores,” said Coresight Research analyst Sujeet Naik.
To combat rising costs and softening demand, many restaurants are turning to menu innovation, modernization, and redefined value propositions.
“In response to the declining dining dollar and the empowered customer, 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 solely by price,” added Circana Senior VP and Industry Consultant for Food and Foodservice David Portalatin in a statement. “Operational excellence in providing quality, affordability, great experiences, and convenience is what leads award-winning restaurants and their supply chain partners to greater success.”
Related: Taco Bell brings back a fan-favorite menu item with a bold upgrade
This story was originally published by TheStreet on January 13, 2026, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.