Friday may not come soon enough if ever. TGI Fridays TGI Fridays closes more than a quarter of its locations as bankruptcy nears. Like many restaurants, changing consumer preferences and lower-cost competition from fast food has left TGI Fridays on the brink. This isn't casual. TGI Fridays has been dealing with declining revenue for years, and its whistling-glazed flat iron steak and churro twists have been unable to lure enough customers back. While dining levels are back up in general to pre-pandemic levels, sit-down dining has continued to languish. And while fast food has certainly gained with consumers, the industry as a whole is facing an inflection point. We're cutting back. According to estimates, one-third of U.S. consumers have cut back on fast food, sit-downs, and delivery alike since the start of the year. Nearly half have been cooking dinner more at home over the same period, while 38% do the same about lunch. That's not what TGI Friday's wants to hear. It's going to require more than 30 pieces of flair. For TGI Friday's, the chain is hoping to seek a buyer and restructure its debt, but that may be a tall order https://lnkd.in/g_2bCGjT #tgifridays #restaurant #fastfood #consumers #food #inflation #economy
Rafael Galaviz
2mo
This is great info, but at the same time fast food prices are about the same with restaurant prices these days. Would you rather a hot made fresh burger and fries at a sit down for $15.99, or a red light warmed McDonald's meal? I feel like restaurants are missing something to capitalize on this. I went from ordering fast food, to ordering Dairy Queen(fast food, but cooked to order), Chili's, Buffalo Wild Wings, ect for the same price for better quality food. I'm sure sit down traffic is a bit more complex, but if prices are equal, and people are still going out, environment and attraction may be where they are all lacking. I know some in my area, like Red Lobster (RIP), haven't seemed to upgrade look in decades. People don't seem to want classic looks and menu any longer, yet places don't seem to respond to this. Older CEO's & Boards may not see this??
Sarah Sullivan
2mo
This headline should read "Another Brand Falls Victim To Private Equity." When Sentinel and TriArtisan bought this chain ten years ago, it had over 500 restaurants in the U.S. and another 400 internationally. They've slowly bled it dry, eliminating thousands of jobs and leaving the shuttered husk of a once-iconic brand to breathe its last gasp in bankruptcy court. Sure, customers are more health-conscious and have less discretionary income than they once did, but that's not why TGI Friday's is in financial peril; they had their assets seized because they can't pay their bondholders. Nor does their downfall have anything to do with a tired menu and lack of flair, factors that killed off previously popular franchises like Howard Johnson's. I hostessed at TGI Fridays as a teenager (it was literally so long ago that my first question to guests was "smoking or non?") and I'm sorry to see it go under. I had wonderful coworkers and managers who were dedicated to making the customer experience as wonderful as possible. Please recognize that no amount of friendly smiles, online ordering, social media engagement, sports team partnerships, or revamped menu offerings would have saved a business that was engineered to fail.
Victor Heutz
2mo
Unfortunately it’s becoming impossible to operate businesses today particularly in restaurant space. Labor costs and food costs have skyrocketed and the customer has been squeezed from disposable income. Transactions are down across the industry as customers have to trade down and or understandably not at all and operators are limited in pricing flexibility - any price increase chases away even more customers. It’s a doom loop and Unfortunately it leads to the inevitable.
Michael Shavel
2mo
We at a Fridays in CT 3 years ago - the food was not very good. It used to be a fun restaurant with good food (like the fried green beans!) but has gone downhill.
Johnny Carino
1mo
Truly sad to watch. I'm of a simple opinion. Continue to improve, grow, challenge, and never stop; you will succeed. Regress, find ways to cut money out of quality, read p/l, not reasoning for declines. Great businesses prosper. Look at Apple; now look at Sears. One stopped being great; one never stopped getting better. My career had a stop in many chain restaurants. I have worked with many great people and leaders. We do food and service, and through declines and cost savings, we see many follow the same fate. My first Friday in 1980, when I started as an adult living in Texas, was a WOW—packed, great everything. Business have personalities when growth is only vehicle and you lose a step or ten it's over.
Our hearts go out, NOT to the Private Equity vultures, but to the dedicated TGI Fridays franchisees and teams that have lived their brands for decades. As I’ve said a million times, all things being equal, People, Passion Culture, Desire and Execution will beat strategy and tactics every day of the week. Customers or, as we say, Guests, have NEVER given up on casual dining however some casual dining brands gave up on their guests long ago by failing to remodel, or ideate or delivering a value based experiential experience versus a transactional one. Bennigan’s, Bennigan’s On The Fly and Steak and Ale are 100% privately owned, we have full control of our brands, no debt and are immensely proud of our Legendary Corporate Team, Franchise Partners and their dedicated teams that represent us around the world! What goes around really does come around and, as we pioneered the creation of the casual dining category, it’s fitting that we are atop the leaderboard once again. Lastly, we continue and will always pay respect and homage to the iconic Norman Brinker for having the vision and foresight to create the family of brands that have stood the test of time for almost 60 years! It’s a legacy we hold close to our hearts. Onward!
J. Paul Buffon
2mo
A victim of inflation and the 2% fed. Inflation from pre covid19 to now is 30%. A Sarabeth Jam went from $ 11.99 to $ 19.99 in NYC. I complained to the owners they were gouging jam prices. They told me the Chinese supplier due to oil price rise increased prices by 80%. Most people live week to week except mag 7 owners but soon nobody will buy their shares while they can't afford. The Fed in all its wisdom lowered prime rate to 2% and it is like giving a 2% credit card to your brother in fashion, he will overpay for everything. Landlords lost their minds with 2% loans and asked foolish rents. Now great TGI is about to go bust but they may be saved by the banks and lenders. Who is going to replace TGI, a lousy chicken store?? So rents will go down and the cheese steak burger will go down in price and all will be happy.
Eric Rupert
2mo
Hope they close ours so we can get a decent restaurant in the space. I honestly don't know how's its stayed open all these years, it's a virtual ghost town any time you drive by. Once a restaurant starts the dive, it's over... We tried going in one evening ( after not being there for 5+ years ) and we were the only people in the place. The bartender was also the server...
Product Design Principal – focused in AI + Behavioral Science
2moMy goodness, where to start. This is general feedback from our experiences going out to dinner, we've never eaten at TGI Fridays. 1. Hidden fees anywheres from 3-22% on top of your final bill, and then still expecting a tip. 2. Smaller portions. 3. Bad food quality. 4. QR codes for menus. 5. Less options, and did I mention bad food quality? 6. Price, but if the food/experience matches then it's worth it. I get that running any business is challenging these days.