TGI Fridays announces closure of 30 restaurants across the US after declining sales
TGI Fridays is shutting down 30 more restaurants across the U.S. following declining sales and a bankruptcy filing in late 2024.
TGI Fridays, once a staple in the casual dining industry, has been struggling with declining sales and financial instability, leading to the closure of nearly 30 more locations across the United States. This decision comes after the company filed for Chapter 11 bankruptcy in late 2024, following years of declining revenue and shrinking market presence.
At its peak, TGI Fridays operated hundreds of locations across the country, but by early 2025, the chain had reduced its footprint significantly, now running just 133 U.S. restaurants—less than half of what it had in 2023. The closures reflect changing consumer preferences, rising competition, and a shift toward fast-casual dining and delivery-based services.
A history of decline on TGI Fridays: 55% reduction in locations since 2008
TGI Fridays’ struggles did not start overnight. The chain has been facing financial difficulties for over a decade, with its number of U.S. locations decreasing by 55% between 2008 and 2023.
Alongside the closures, sales plummeted by 63%, driven by:
- Declining customer foot traffic, as more consumers opt for fast-casual and takeout dining.
- Rising competition from brands that offer more affordable and convenient dining options.
- Failure to modernize in response to evolving dining trends, leaving TGI Fridays behind competitors.
As more diners turn to fast-casual restaurants and food delivery services, traditional sit-down chains like TGI Fridays have struggled to retain customers and maintain profitability.
The closures span states like New York, New Hampshire, Maryland, Massachusetts, and Ohio, with signs on locked doors citing the "difficult decision" to close.
Financial troubles and shrinking domestic presence
In 2024, the company’s financial situation deteriorated further, leading to a loss of control over many of its assets due to problems with its whole business securitization model.
Adding to the crisis, a planned merger with U.K. franchisee Hostmore fell through, further destabilizing the chain’s finances. This ultimately led to TGI Fridays filing for Chapter 11 bankruptcy, covering its 39 company-owned U.S. locations.
TGI Fridays has only 133 locations across the US. Photo: Telemundo
In an effort to salvage part of its business, the company has agreed to sell nine locations to restaurant operator Mera Corp. for $34.5 million. However, with closures continuing, the brand’s long-term future remains uncertain.
As of early 2025, TGI Fridays has drastically reduced its footprint in the U.S., with only 133 locations remaining—down from nearly 300 in previous years. While corporate-owned stores have been hit hardest, many franchise-owned locations remain operational.
Globally, the situation is slightly more stable, with around 400 TGI Fridays locations still open in international markets. The company’s leadership is now focused on franchise management as a way to keep the brand alive despite the ongoing domestic closures.
In an effort to stabilize operations, former CEO Ray Blanchette, who is now a franchisee, has been brought back to oversee the global franchise business and manage the company’s restructuring efforts.