TGI Fridays files for bankruptcy as sales slow

The once popular American casual dining chain known for its burgers and appetizers, TGI Fridays, filed for Chapter 11 bankruptcy over the weekend, citing financial strain from the pandemic and a problematic capital structure.

During the restructuring process, all 39 locations of the Texas-based company will remain open. The 56 independently owned and operated franchised restaurants will avoid bankruptcy.

TGI Fridays (short for Thank God It’s Fridays) opened in 1965 in Manhattan. It was initially popular among singles but soon transitioned into a family-friendly place.

The bankruptcy comes amid declining sales and waning consumer interest in the bar and grill chain. It made $728 million in US sales in 2023, down 15% from the year before, according to data from Technomic.

Not just TGI Fridays
Restaurant franchises, including Red Lobster, Buca di Beppo, Hawkers Asian Street Food and Tijuana Flats, filed for bankruptcy this year.

This year, the industry is on track to see the most bankruptcies declared in decades besides 2020.

Fast food restaurants are struggling with sales, too, as more consumers tighten their budgets and choose home cooking amid high food prices.