The sudden closure of hundreds of TGI Friday's outlets throughout the United States certainly caught some customers off guard this week when they learned their neighborhood restaurant was going out of business for good. A large number of the chain's former employees were surprised by the closures as well.
According to the chain's press release, 36 locations were shuttered due to "underperforming" business. This move is part of the chain's ongoing growth strategy, which also involves a change in management and the sale of some locations back to the previous CEO.
Outlet Closures
Although TGI Friday's did not publicly disclose the list of stores that were shut down, local news outlets have reported that seven of its locations in New Jersey, six in Massachusetts, and five in New York were closed. Reportedly, several stores in Pennsylvania, Florida, Texas, Colorado, and California were also shuttered.
About 270 TGI Friday's restaurants were open in the US before the closures, a number that has decreased over the last several years. As many as 80% of the total impacted employees were given the chance to switch jobs, says the business.
"Our top priority has always been delivering a superior experience for each and every TGI Friday's guest, and we've identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet - and exceed - on that brand promise," stated Ray Risley, US president and chief operating officer of TGI Friday's.
Although the company has said that it is providing transfer opportunities to the majority of affected employees, several of those who have been laid off have expressed doubts that this would be an adequate solution for them.
Speaking with MassLive, two long-term workers of TGI Friday's in Massachusetts said that they were informed of the closures on the same day as the general public. Additionally, one employee said that upper-level management informed them that they would not be getting severance or any other kind of compensation.
More Changes
In a report by CNN, one of the other changes made at the almost 60-year-old firm was selling eight stores in the Northeast US that the corporation formerly held to its former CEO, Ray Blanchette. He served as the CEO of TGI Friday's for five years until May 2023.
The company said Blanchette will spearhead the locations into a new era of revival and has an unparalleled grasp of the TGI Friday's business and the restaurant's dedication to providing customers with quality. This information was shared in relation to the transaction.
The financial results of TGI Friday's are not disclosed since the restaurant chain is privately held by the private equity group TriArtisan Capital Advisors. Last year, nevertheless, the business claimed that same-store sales in the US would increase by 8% from 2019 to 2022, bringing total sales to $1.6 billion.
Additionally, in an effort to stay competitive with its rivals, particularly Chili's and Applebee's, it has recently added sushi to its menu, revamped its drink offerings, and updated its appetizer offerings.
