Sit-down restaurants are continuing to struggle, which has led to the bankruptcy of TGI Friday's, the popular restaurant chain.
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The chain has been on a steady decline as it closed 36 of its restaurants in January this year. Last year, they had 269 locations. As of writing, they have 163. With a hundred closings in a year's span, it's no wonder why TGI Friday's have issued for bankruptcy protection.
The chapter-11 bankruptcy protection was filed in Texas last Saturday.
TGI Friday's has been facing financial woes for a while. The rising popularity of ordering food to your door and visiting fast food chains has also been a stress on all restaurants.
In a statement, Executive Chairman Rohit Manocha said, "The primary driver of our financial challenges resulted from COVID-19 and our capital structure."
"This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential," he added.
TGI Friday's Hit With Bankruptcy
Since opening in 1965 in New York, "Thank God It's" Friday's has been a beloved casual dining chain. Thanks to inflation and challenging prices, people have been less inclined to eat out.
At its peak, the restaurant chain boasted 601 restaurants in the U.S. in 2008. In recent years, however, their profits have been declining. In 2003, the chain made $728 million, down 15% from the prior year, according to Technomic.
The future is uncertain for the business. A smaller model may prove profitable enough for them as they'll likely never reach the heights of when consumers preferred and could afford to eat out. If profits continue to drop, they may be forced to close their doors for good.
It managed to shift its image in the 1990s from a nightlife singles joint to a casual family diner, so perhaps another reshift is needed.
The chain has not responded to outlets' comments about the recent closures and of the bankruptcy.
