Amid the closures of many of the TGI Fridays restaurants around the U.S., we have to ask if they are in hot water, and just how bad their financial situation is. Does this signal bankruptcy for the chain, or can they pull it back from the brink?
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It was reported last week that TGI Fridays had permanently closed 50 additional restaurants. This brings their numbers down to only 164, which is a stark contrast to the 250 at the beginning of the year. As the economy continues to struggle, more and more diners are choosing to eat elsewhere, damaging the industry.
The latest wave of closures has been reported in California, Ohio, New York, New Jersey, Florida, and Missouri. These drastic measures are signs that reports of bankruptcy may not be unfounded after all. However, they are not the only high street chain to be feeling the pinch.
TGI Fridays Among Many Others To Suffer
The current cost of living crisis affects more than just the people on the streets. Similarly, restaurants have to pay utility bills, rent, wages, and of course, the rising cost of ingredients. Therefore, the prices of menus have to increase to meet the demands.
However, for diners, this means that eating out no longer becomes a viable option. Whereas before a trip to TGI Fridays was something that could be enjoyed maybe twice a month, it is now no longer worth it. For the price, many high street restaurants simply do not offer the quality or experience to justify the spending. It is better value to pay only slightly more and eat at a much more delectable, independent, or up-market establishment.
The closure of so many restaurants like Hooters and TGI Fridays is indicative of the current financial crisis. These are casual restaurants that offer nothing special but are reliable and usually affordable. However, now that people have less spending money than ever, they will be the first to get hit.
Hooters has allegedly been battling with $300 million worth of debt after closing 40 restaurants. However, unlike others, such as TGI Fridays and Red Lobster, this may be due to the outdated and rather creepy branding. I think we are past marketing a high-street chain restaurant based on the appearance of scantily clad waitresses.
