Iconic restaurant chain TGI Friday’s axes scores of locations in US, UK
A well-known US diner brand, whose name is on locations across Australia, is shutting restaurants globally as the chain’s woes grow.
An iconic US dining chain, whose name is on 19 restaurants in Australia, is to close scores of locations globally in a sign the chain is in trouble.
TGI Fridays, famous for its, steaks, chicken wings and burgers all washed down with luridly coloured cocktails or copious beers, has closed 12 locations in its home market of the United States in the past month.
In just the last week, TGI Friday’s in New York, Pennsylvania, Connecticut and Virginia all shut up shop. At the start of the year a further 36 TGI Friday’s closed in the US.
Meanwhile in the UK, it was announced last week that 1000 jobs would go as the chain shut 35 locations.
TGI’s troubles comes as a slew of US casual dining chains have closed stores – or gone bust – as consumers reign in spending and shun unhealthy foods.
TGI Fridays, which was founded in 1965 in the ritzy Upper East Side of New York City, took the US diner worldwide. But from 2021 it has gone from more than 330 branches in the US to little more than 200.
Australian stores to remain open
In Australia, the TGI Friday’s brand and stores is managed by the Signature Hospitality Group, whose main business is bar chain The Sporting Globe.
Its branches are mainly found in shopping centres including Doncaster and Chadstone in Melbourne, Macquarie in Sydney, Robina on the Gold Coast and Carousel in Western Australia.
Signature CEO James Sinclair told news.com.au that no Australian locations were closing – in fact it had been opening stores.
“The Australian TGI Fridays business is completely separate from the US and UK businesses,” Mr Sinclair said.
“We have a licencing agreement with the US, and operate a mix of company and franchise owned stores.
“Our TGIs brand continues to grow in Australia, where there is a strong appetite for Americana bars and restaurants, and we are actively looking for new franchise sites.”
Stores closing in US
In January, the US arm of TGI Friday’s, owned by private equity firm TriArtisan Capital Advisers, said it was shutting 36 stores in order to undergo an “era of transformation”.
“We’ve identified opportunities to optimise and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” TGI Friday’s chief operating officer Ray Risley said at the time, reported Fox Business.
“By strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Friday’s to drive forward its vision for the future.”
In a glimmer of good news, in 2022 the company’s franchise partner in Asia said it was set to open 75 TGIs in south and south east Asia as demand for American inspired food there continued to grow
TGI’s UK woes
Last month, the UK operator of TGI Friday’s, London listed firm Hostmore, said it was suspending its shares.
It had around 85 TGI Friday’s across Britain.
A rescue deal with Breal Capital and Calveton UK will save 51 restaurants and 2400 jobs. But 35 TGI Fridays and 1000 jobs will go.
The BBC reported the new owners as saying they wanted to “both modernise the business and capitalise on the heritage of this iconic brand”.
‘TGI Friday’s pleased no one’
British columnist Zoe Strimple said TGI Friday’s had been a “roaring success” in the UK when it opened in the 1980s.
“Brits, always keen to emulate the culture and style of America, were eager customers of the diner chain,” she wrote last month in magazine The Spectator.
However, in an age where vegetarianism, veganism and general health consciousness were growing in popularity, TGI’s meat and dairy heavy menu was a turn off even if it attempted to offer alternatives.
“Burger chains like TGI Fridays have tried to please everyone. In doing so, they have pleased no one,” Strimple wrote.
“The truth is that you can’t recreate the magic of the American diner on a cold rainy night in (the UK)
“The American diner only works in America”.
Another diner chain which found a home in Australia no longer exists.
Sizzler closed the doors of its last Aussie restaurant in 2020, taking its famous cheese toasts with it.
Sizzler continues to have a number of locations in the US as well as Japan and Thailand.
In the US, casual dining chain Red Lobster has gone from 700 branches countrywide to going to the wall.
In May, the seafood restaurant chain filed for Chapter 11 bankruptcy protection just days after it announced it was shuttering almost 100 stores.
Like many chains of its ilk, it was accused of not moving with the times and failing to excite younger diners.
But a disastrous decision will forever be remembered for the key role it played in Red Lobster’s woes.
Last summer, it wowed customers with its endless shrimp deal where for $30 ($US20) diners could have as many prawns as they wanted.
The idea was it would bring customers flocking in who would then trade up to more expensive menu options.
Customers did indeed rush in. But they then spent far less money than expected.
They also lingered at tables for longer. And the $20 promotion occurred just as wholesale prawn prices began to shoot up making the deal even better for the customers and even worse for Red Lobster.
Management said the promotion cost the chain at least $16 million.
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Originally published as Iconic restaurant chain TGI Friday’s axes scores of locations in US, UK
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