DALLAS (AP)– Restaurant chain TGI Fridays utilized for private chapter protection Saturday, claiming it’s in search of strategies to “ensure the long-term viability” of the casual consuming model identify after shutting a lot of its branches this yr.
The Dallas- primarily based enterprise utilized for Chapter 11 private chapter protection in a Texas authorities court docket.
TGI Fridays Executive Chairman Rohit Manocha in a declaration claimed the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
Sit- down chain eating institutions have truly way more extensively handled difficulties in current instances as eating places choose to acquire meals equipped or see excessive finish junk meals chains like Chipotle and Shake Shack.
A united state private chapter court docket in September approved a reorganization plan for fish and shellfish chain Red Lobster after years of putting in losses and diminishing purchasers.
Founded in 1965, the enchantment of TGI Fridays got here to a head in 2008 with 601 eating institutions within the united state and a $2 billion firm, in line with Kevin Schimpf, supervisor of sector analysis examine atTechnomic Its gross sales within the united state have been $728 million in 2023, down 15% from the earlier yr, in line with Technomic.
It presently counts 163 eating institutions within the united state, beneath 269 in 2014. It shut 36 in January and much way more within the earlier week.
TGIFridays Inc claimed it simply possesses and runs 39 eating institutions within the united state, which is just a portion of the 461 TGI Friday- branded eating institutions across the globe. A special entity, TGI Fridays Franchisor, possesses the copyright and has truly franchised the model identify to 56 impartial proprietors in 41 nations. Those proceed to be open.
The Associated Press
